First Regular Session
Sixty-second General Assembly
LLS NO. 99-0016.01 Gregg Fraser HOUSE BILL 99-1195
STATE OF COLORADO
BY REPRESENTATIVES Pfiffner, May, Paschall, Allen, Dean,
McElhany, McPherson, Sullivant, T. Williams, Young;
also SENATORS Owen, Dennis, Powers, Congrove, Hillman, Lamborn,
Musgrave, Tebedo.
REENGROSSED
STATE, VETERANS, & MILITARY AFFAIRS
A BILL FOR AN ACT
101 CONCERNING GOVERNMENTAL EFFICIENCY.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Specifies that managed competition for personal services contracts
may be implemented by a state agency as an additional management tool.
Authorizes a labor-management cooperation council to be organized
within any state agency that chooses to implement managed competition.
Specifies the membership of such council and its duties. Specifies
criteria for implementation of managed competition.
Requires that, prior to implementing managed competition, a state
agency must submit a proposal for managed competition to the
commission on government efficiency for review and to the governor for
approval.
Specifies that, prior to requesting bids from private entities for a
personal services contract, the head of the state agency shall notify the
agency's employees of such request. Allows agency employees to
organize an employee business unit to prepare and submit a bid for the
contract. If employees inform a state agency of their desire to submit
such a bid, requires a state agency to provide such employees with
adequate training for the bidding process and to assist in bid preparation.
Describes the criteria for awarding a contract to an employee business
unit.
Makes the head of the state agency responsible for implementing
managed competition in that agency. Provides for allocation of any cost
savings gained by an agency from successfully fulfilling the terms of a
personal services contract between the state agency and, if the employees
initiated the managed competition, the employee business unit performing
the contract. Requires that a participating state agency file an annual
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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status report.
Creates a commission on government efficiency. Specifies the
membership for the commission. Specifies the term limits and the
method of filling vacancies for the members of the commission. Requires
the governor to select a chairman at a meeting held no later than October
1, 1999. Requires the commission to conduct meetings at least quarterly
thereafter. Specifies that a majority of the commission constitutes a
quorum and that members of the commission serve without
compensation. Allows the commission to request staff assistance from
the department of personnel. Subjects the activities performed by the
commission to an annual audit by the state auditor. Requires the
commission to report annually to the state, veterans, and military affairs
committees of the senate and the house of representatives. Sets forth the
powers of the commission.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 24-50-502, Colorado Revised Statutes, is amended
3 to read:
4 24-50-502. Definitions. As used in this part 5, unless the context
5 otherwise requires:
6 (1) "BID" MEANS A COMPETITIVE SEALED BID OR A COMPETITIVE
7 SEALED PROPOSAL AS DESCRIBED IN ARTICLE 103 OF THIS TITLE OR AS
8 OTHERWISE AUTHORIZED BY RULE.
9 (2) "BUSINESS UNIT" MEANS A GROUP OF EMPLOYEES SUBMITTING
10 A BID PURSUANT TO SECTION 24-50-504.5.
11 (1) (3) "Contract" means any type of state agreement, regardless
12 of what it may be called, for the acquisition of services.
13 (4) "EMPLOYEE" MEANS ANY EMPLOYEE UNDER THE STATE
14 PERSONNEL SYSTEM.
15 (5) "MANAGED COMPETITION" MEANS THE PROCESS BY WHICH A
16 STATE AGENCY AUTHORIZES EMPLOYEES OF THE AGENCY TO COMPETE
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1 WITH PRIVATE BUSINESSES OR FIRMS FOR A PERSONAL SERVICES CONTRACT
2 AUTHORIZED BY SECTION 24-50-503 OR 24-50-504.
3 (2) (6) "Personal services" means services acquired for the state's
4 direct benefit in its operations.
5 (3) (7) "Purchased services" means the acquisition of services
6 which THAT directly benefit specific groups or individuals in the public
7 at large as defined by law from public or private entities licensed,
8 certified, or otherwise authorized by statute to provide such services.
9 (4) (8) "Services" means the furnishing of labor, time, or effort.
10 (9) "STATE AGENCY" MEANS ANY DEPARTMENT, BOARD, BUREAU,
11 COMMISSION, DIVISION, INSTITUTION, OR OTHER AGENCY OF THE STATE,
12 INCLUDING INSTITUTIONS OF HIGHER EDUCATION.
13 SECTION 2. Part 5 of article 50 of title 24, Colorado Revised
14 Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW
15 SECTIONS to read:
16 24-50-504.5. Managed competition - personal services
17 contracts - criteria - employee proposals. (1) THE GENERAL ASSEMBLY
18 FINDS THAT MANAGED COMPETITION MAY BE IMPLEMENTED AT THE
19 DISCRETION OF A STATE AGENCY AS AN ADDITIONAL MANAGEMENT
20 STRATEGY OR TOOL TO MAXIMIZE THE EFFECTIVENESS AND EFFICIENCY OF
21 GOVERNMENT SERVICES. THE STATE PERSONNEL DIRECTOR SHALL
22 PROVIDE ASSISTANCE TO A STATE AGENCY WITH IMPLEMENTING AND
23 COORDINATING MANAGED COMPETITION AND SHALL ENSURE THAT THE
24 STATE AGENCY ADMINISTERS MANAGED COMPETITION IN ACCORDANCE
25 WITH THE CRITERIA DESCRIBED IN THIS SECTION.
26 (2) NOTWITHSTANDING THE PROVISIONS OF ARTICLE 113 OF THIS
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1 TITLE, ANY STATE AGENCY MAY IMPLEMENT MANAGED COMPETITION FOR
2 A PERSONAL SERVICES CONTRACT IMPLICATING THE STATE PERSONNEL
3 SYSTEM THAT IS AUTHORIZED BY SECTION 24-50-503 OR A PERSONAL
4 SERVICES CONTRACT NOT IMPLICATING THE STATE PERSONNEL SYSTEM
5 AUTHORIZED BY SECTION 24-50-504. MANAGED COMPETITION FOR SUCH
6 A CONTRACT MAY BE IMPLEMENTED BY SOLICITING BIDS FROM BUSINESS
7 UNITS PURSUANT TO SUBSECTION (6) OF THIS SECTION.
8 (3) A LABOR-MANAGEMENT COOPERATION COUNCIL MAY BE
9 ORGANIZED WITHIN ANY STATE AGENCY THAT CHOOSES TO IMPLEMENT
10 MANAGED COMPETITION. SUCH COUNCIL SHALL BE COMPRISED OF
11 REPRESENTATIVES FROM THE STATE AGENCY'S MANAGEMENT,
12 NONMANAGEMENT EMPLOYEES, AND STATE EMPLOYEE ORGANIZATIONS, AS
13 FULL PARTNERS. THE COUNCIL SHALL PRIMARILY FOCUS ON ACHIEVING
14 SUCCESSFUL OUTCOMES IN THE AREAS OF GENERAL PRIVATIZATION
15 INITIATIVES AND EMPLOYEE MANAGED COMPETITION PROJECTS. THE
16 COUNCIL SHALL PARTICIPATE IN ALL STAGES OF THE CONSIDERATION AND
17 IMPLEMENTATION OF A STATE AGENCY'S PROPOSAL FOR MANAGED
18 COMPETITION.
19 (4) A STATE AGENCY MAY IMPLEMENT MANAGED COMPETITION
20 WHEN:
21 (a) FOR A PERIOD OF NOT LESS THAN ONE YEAR PRIOR TO MAKING
22 A REQUEST FOR PROPOSALS, THE STATE AGENCY HAS UNDERTAKEN
23 SPECIFIC, DESCRIBED MEASURES TO IMPROVE OPERATIONS AND REDUCE
24 COSTS FOR THE PERSONAL SERVICES COVERED BY THE PERSONAL SERVICES
25 CONTRACT AND TO COMPETE ON AN EQUAL BASIS WITH THE PRIVATE
26 SECTOR IN PROVIDING SUCH PERSONAL SERVICES;
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1 (b) THE STATE AGENCY PROVIDES WRITTEN DOCUMENTATION AND
2 OTHER RELEVANT DATA EVIDENCING THAT THE MEASURES UNDERTAKEN
3 PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (4) HAVE NOT:
4 (I) IMPROVED OPERATIONS TO STANDARDS COMPARABLE TO THE
5 PRIVATE SECTOR;
6 (II) REDUCED COSTS TO THE LEVEL OF THE PRIVATE SECTOR; OR (III) RESULTED IN THE AGENCY'S ABILITY TO COMPETE ON AN
7 EQUAL BASIS WITH THE PRIVATE SECTOR;
8 (c) THE PERSONAL SERVICES CONTRACT SHALL NOT EXCEED A
9 ONE-YEAR TERM BUT MAY BE RENEWABLE FOR UP TO FOUR ADDITIONAL
10 ONE-YEAR TERMS AT THE SOLE OPTION OF THE STATE AGENCY;
11 (d) THE PERSONAL SERVICES CONTRACT INCLUDES A PROVISION
12 DIRECTING A PRIVATE ENTITY THAT IS AWARDED THE CONTRACT TO
13 CONSIDER OFFERING EMPLOYMENT TO STATE AGENCY EMPLOYEES TO
14 PERFORM THE SERVICES UNDER SUCH CONTRACT;
15 (e) AT LEAST TWO PRIVATE ENTITIES EXIST THAT PROVIDE THE
16 SERVICE TO BE CONTRACTED, OR AT LEAST TWO COMPETITIVE BIDS FOR
17 THE SERVICE HAVE BEEN MADE BY PRIVATE ENTITIES TO THE STATE
18 AGENCY, OR, IF TWO SUCH PRIVATE ENTITIES DO NOT EXIST, THE STATE
19 AGENCY CAN DEMONSTRATE THAT A REQUEST FOR BIDS WILL RESULT IN AT
20 LEAST TWO COMPETITIVE BIDS FOR THE SERVICE; AND
21 (f) THE STATE AGENCY HAS OBTAINED THE APPROVAL TO
22 IMPLEMENT MANAGED COMPETITION DESCRIBED IN SUBSECTION (6) OF THIS
23 SECTION.
24 (5) (a) A STATE AGENCY THAT DESIRES TO IMPLEMENT MANAGED
25 COMPETITION SHALL PREPARE A PROPOSAL TO IMPLEMENT MANAGED
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1 COMPETITION FOR A PERSONAL SERVICES CONTRACT. THE STATE AGENCY
2 SHALL SOLICIT INPUT FROM THE LABOR-MANAGEMENT COOPERATION
3 COUNCIL ORGANIZED WITHIN THE STATE AGENCY. THE PROPOSAL SHALL
4 BE SUBMITTED TO THE COMMISSION ON GOVERNMENT EFFICIENCY
5 CREATED BY SECTION 24-50-515. THE COMMISSION SHALL REVIEW AND,
6 IF APPROPRIATE, MAKE RECOMMENDATIONS ON THE PROPOSAL.
7 (b) THE AGENCY PROPOSAL SHALL INCLUDE, IN ADDITION TO ANY
8 OTHER INFORMATION REQUIRED OR REQUESTED BY THE COMMISSION, THE
9 FOLLOWING DETERMINATIONS:
10 (I) A COST-BENEFIT ANALYSIS COMPARISON THAT SHALL INCLUDE,
11 BUT NEED NOT BE LIMITED TO, THE COLLECTION AND ANALYSIS OF THE
12 TOTAL FIXED, VARIABLE, AND INDIRECT COSTS OF THE GOVERNMENTAL
13 OPERATION AND THE REENGINEERING OF THE CURRENT GOVERNMENTAL
14 OPERATION. AS USED IN THIS SUBPARAGRAPH (I), "COSTS" INCLUDES, BUT
15 IS NOT LIMITED TO:
16 (A) FACILITY AND EQUIPMENT MAINTENANCE;
17 (B) DEPRECIATION AND REPLACEMENT COSTS;
18 (C) INFLATION-ADJUSTED COSTS, WHERE COMPARISON OF PAST
19 YEARS IS BEING CONDUCTED;
20 (D) TRANSITION COSTS ASSOCIATED WITH SHIFTING THE SERVICE
21 DELIVERY FROM THE GOVERNMENT AGENCY TO A PRIVATE CONTRACTOR
22 OR ANY COSTS ASSOCIATED WITH CONVERTING THE PROVISION OF
23 GOVERNMENT SERVICES TO A PERSONAL SERVICES CONTRACT PERFORMED
24 BY A BUSINESS UNIT;
25 (E) COSTS OF MONITORING, EVALUATING, AND ENFORCING THE
26 CONTRACT;
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1 (F) COST OF RESUMING GOVERNMENT OPERATION OF THE SERVICE
2 IF THE PRIVATIZATION EFFORT FAILS;
3 (G) COST OF TRAINING STATE EMPLOYEES AND THEIR
4 REPRESENTATIVES ON THE BIDDING PROCESS; AND
5 (H) PERSONNEL COSTS SUCH AS THOSE FOR PROVIDING BENEFITS,
6 EARLY RETIREMENTS, RETRAINING, AND RELOCATION TO ANOTHER
7 POSITION.
8 (II) A REVIEW AND EVALUATION OF THE STAFF CAPACITY,
9 RESOURCES, AND EXPERTISE IN THE AGENCY TO MONITOR THE CONTRACT;
10 AND
11 (III) A PROCESS FOR MONITORING, EVALUATING, AND ENFORCING
12 A CONTRACT WITH A PRIVATE CONTRACTOR THAT WILL INCLUDE, BUT NOT
13 BE LIMITED TO:
14 (A) DEVELOPMENT OF A METHOD FOR ONGOING, COMPREHENSIVE
15 PERFORMANCE EVALUATION OF THE PRIVATE CONTRACTOR; AND
16 (B) ESTABLISHMENT OF PERFORMANCE CRITERIA AND STANDARDS
17 TO EVALUATE THE PRIVATE CONTRACTOR.
18 (c) THE AGENCY PROPOSAL SHALL PROVIDE FOR THE
19 DEVELOPMENT AND IMPLEMENTATION OF A DETAILED COST-BENEFIT
20 ANALYSIS COMPARISON FORMAT THAT WOULD ENSURE A THREE-WAY
21 COMPARISON OF THE CURRENT GOVERNMENT OPERATION, THE PRIVATE
22 CONTRACTOR OPERATION, AND A REENGINEERING OF THE CURRENT
23 OPERATION TO PROVIDE THE SERVICE WITH STATE EMPLOYEES.
24 (d) IN ADDITION TO ANY OTHER INFORMATION REQUESTED BY THE
25 COMMISSION, THE PROPOSAL SHALL INCLUDE THE FOLLOWING
26 DETERMINATIONS:
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1 (I) THE NECESSITY FOR THE SERVICE AND THE INTENDED GOALS OF
2 THE SERVICE;
3 (II) A DESCRIPTION OF THE PROBLEMS AND INEFFICIENCIES
4 EXISTING WITH THE CURRENT GOVERNMENTAL OPERATION OF THE
5 SERVICE;
6 (III) THE AVAILABILITY OF QUALIFIED AND COMPETITIVE PRIVATE
7 CONTRACTORS AND THE STATE'S ABILITY TO CHANGE FROM ONE PRIVATE
8 CONTRACTOR TO ANOTHER.
9 (e) FOLLOWING A REVIEW OF THE PROPOSAL BY THE COMMISSION,
10 THE PROPOSAL SHALL BE SUBMITTED TO THE GOVERNOR FOR FINAL
11 APPROVAL OR REJECTION. IF THE PROPOSAL IS NOT APPROVED BY THE
12 GOVERNOR, THE GOVERNOR SHALL RETURN THE PROPOSAL TO THE STATE
13 AGENCY WITH COMMENTS OUTLINING THE REASONS FOR ITS REJECTION
14 AND THE PERIOD OF TIME IN WHICH THE STATE AGENCY MAY RESUBMIT THE
15 PROPOSAL TO THE GOVERNOR. ANY PROPOSAL NOT OBJECTED TO BY THE
16 GOVERNOR WITHIN THIRTY DAYS AFTER ITS SUBMITTAL SHALL BE DEEMED
17 APPROVED.
18 (6) (a) AT LEAST NINETY DAYS PRIOR TO REQUESTING BIDS FROM
19 PRIVATE ENTITIES FOR A PERSONAL SERVICES CONTRACT, THE HEAD OF THE
20 STATE AGENCY SHALL NOTIFY THE EMPLOYEES OF THE STATE AGENCY
21 REGARDING THE REQUEST FOR BIDS.
22 (b) IF EMPLOYEES OF A STATE AGENCY INFORM THE HEAD OF THE
23 AGENCY OF THEIR DESIRE TO SUBMIT A BID THROUGH ONE OR MORE
24 BUSINESS UNITS ESTABLISHED FOR THE SOLE PURPOSE OF PROVIDING THE
25 PERSONAL SERVICES THAT ARE THE SUBJECT OF THE REQUEST FOR BIDS,
26 THE STATE AGENCY SHALL PROVIDE THE BUSINESS UNIT OR UNITS WITH
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1 ADEQUATE TRAINING FOR THE BIDDING PROCESS AND SHALL ASSEMBLE A
2 TEAM COMPRISED OF MANAGERS, KNOWLEDGEABLE EMPLOYEES, AND
3 REPRESENTATIVES OF LABOR ORGANIZATIONS TO ASSIST THE BUSINESS
4 UNIT OR UNITS IN PREPARING THE BID.
5 (c) THE EMPLOYEES MAY SUBMIT A BID THROUGH ONE OR MORE
6 BUSINESS UNITS ESTABLISHED FOR THE SOLE PURPOSE OF PROVIDING THE
7 PERSONAL SERVICES THAT ARE THE SUBJECT OF THE REQUEST FOR BIDS
8 ISSUED BY THE STATE AGENCY.
9 (d) THE BUSINESS UNIT MAY SUBMIT A BID AND BE AWARDED A
10 CONTRACT TO PROVIDE SUCH PERSONAL SERVICES, SUBJECT TO THE
11 FOLLOWING CONDITIONS:
12 (I) THE BUSINESS UNIT SHALL SUBMIT A SEALED BID BEFORE THE
13 ADVERTISED DEADLINE FOR SUCH BIDS; SUCH BID MAY NOT BE ALTERED
14 AFTER SUCH DEADLINE; AND THE HEAD OF THE STATE AGENCY, OR HIS OR
15 HER DESIGNEE, SHALL PUBLICLY OPEN SUCH BID AND MAKE THE CONTENTS
16 OF THE BID PUBLIC AT SUCH DEADLINE.
17 (II) THE STATE PERSONNEL DIRECTOR SHALL DEFINE IN ADVANCE
18 AND IMPLEMENT PROCEDURES TO ENSURE AN OBJECTIVE AND FAIR
19 EVALUATION PROCESS, INCLUDING, BUT NOT LIMITED TO, A PROHIBITION
20 AGAINST BID EVALUATION PARTICIPATION BY ANY PERSONNEL THAT
21 ASSISTED IN PREPARING THE BUSINESS UNIT'S BID OR THAT HAS WITHIN ITS
22 SCOPE OF RESPONSIBILITY THE PROVISION OF ANY OF THE PERSONAL
23 SERVICES TO BE CONTRACTED. IF THE HEAD OF THE STATE AGENCY
24 DETERMINES TO AWARD A CONTRACT TO A BUSINESS UNIT OF THE AGENCY,
25 SUCH AWARD MAY NOT BE MADE UNLESS: THE BUSINESS UNIT RECEIVED
26 NO UNFAIR ADVANTAGE OVER OTHER BIDDERS SUCH AS UNEQUAL ACCESS
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1 TO EVALUATION INFORMATION OR A SCORING PREFERENCE BASED SOLELY
2 ON ITS STATUS AS A BUSINESS ENTITY; THE EVALUATION PROCESS WAS
3 OBJECTIVE AND FAIR; AND ALL REQUIREMENTS OF THIS SUBSECTION (6)
4 GOVERNING BIDS BY BUSINESS UNITS OF THE AGENCY WERE MET. FOR
5 PURPOSES OF THIS SUBPARAGRAPH (II), AN UNFAIR ADVANTAGE SHALL NOT
6 EXIST SOLELY BY VIRTUE OF POTENTIAL COST SAVINGS DISTRIBUTIONS TO
7 STATE EMPLOYEES OR TRAINING OR BID PREPARATION ASSISTANCE TO A
8 BUSINESS UNIT BY A STATE AGENCY. THE STATE AGENCY SHALL PROVIDE
9 A REASONABLE OPPORTUNITY FOR PRIVATE BUSINESSES AND OTHER
10 BUSINESS UNITS TO COMMENT REGARDING THE EVALUATION PROCESS AND
11 ANY BID MADE BY A BUSINESS UNIT OF THE STATE AGENCY AND SHALL
12 CONSIDER SUCH COMMENTS IN MAKING THE FINAL CONTRACT AWARD.
13 (III) THE BUSINESS UNIT'S BID PRICE IS NOT LESS THAN ITS
14 ATTRIBUTABLE FULLY ALLOCATED COSTS FOR THE PERSONAL SERVICES,
15 INCLUDING ANY COSTS ASSOCIATED WITH CONVERTING THE PROVISION OF
16 GOVERNMENT SERVICES TO A PERSONAL SERVICES CONTRACT PERFORMED
17 BY A BUSINESS UNIT.
18 (IV) THE BUSINESS UNIT IS BOUND BY THE SAME TERMS,
19 CONDITIONS, FINANCIAL PENALTIES, AND STANDARDS OF PERFORMANCE
20 AND OUTCOMES AS WOULD HAVE APPLIED TO THE SCOPE OF WORK FOR A
21 PRIVATE BUSINESS IF IT HAD BEEN AWARDED THE CONTRACT UNDER THE
22 REQUEST FOR BIDS.
23 (V) IF DURING ANY FINANCIAL QUARTER DURING THE TERM OF THE
24 CONTRACT THE COST OF THE BUSINESS UNIT ATTRIBUTABLE TO THE
25 SERVICE PROVIDED PURSUANT TO ANY REQUEST FOR BIDS EXCEEDS THE
26 CONTRACT PRICE FOR THE PERIOD FOR SUCH SERVICE, THE STATE AGENCY
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1 SHALL CANCEL THE CONTRACT AND ISSUE NEW REQUESTS FOR BIDS FOR
2 THE SERVICE PROVIDED UNDER THE CONTRACT. THE STATE AGENCY SHALL
3 ISSUE A NEW REQUEST FOR BIDS FOR SUCH SERVICE WITHIN ONE HUNDRED
4 TWENTY DAYS AFTER THE END OF SUCH FINANCIAL QUARTER.
5 (7) A STATE AGENCY IMPLEMENTING MANAGED COMPETITION FOR
6 A PERSONAL SERVICES CONTRACT MAY UTILIZE COMPETITIVE SEALED BEST
7 VALUE BIDDING FOR SUCH CONTRACT PURSUANT TO SECTION
8 24-103-202.3.
9 (8) THE HEAD OF A STATE AGENCY SHALL BE RESPONSIBLE FOR
10 IMPLEMENTING MANAGED COMPETITION IN THAT AGENCY AND FOR
11 MONITORING A PERSONAL SERVICES CONTRACT ENTERED INTO BY THE
12 AGENCY WITH A BUSINESS UNIT UNDER MANAGED COMPETITION.
13 (9) (a) ANY COST SAVINGS GAINED BY A STATE AGENCY FROM
14 SUCCESSFULLY FULFILLING THE TERMS OF A PERSONAL SERVICES
15 CONTRACT WITH A BUSINESS UNIT MAY BE RETAINED BY SUCH AGENCY.
16 WHERE SUCH COST SAVINGS ARE RETAINED BY THE AGENCY, THE AGENCY
17 SHALL DIRECT THE PREPONDERANCE OF SUCH SAVINGS TO THE OFFICE OR
18 DIVISION WHERE THE SAVINGS ORIGINATED AS PROVIDED IN PARAGRAPH
19 (b) OF THIS SUBSECTION (9). THE CALCULATION OF THE AMOUNT OF COST
20 SAVINGS FROM SUCH A CONTRACT SHALL BE MADE PURSUANT TO
21 PROCEDURES ESTABLISHED BY THE STATE PERSONNEL DIRECTOR FOR
22 CALCULATING SUCH COST SAVINGS AND SHALL BE SUBJECT TO APPROVAL
23 BY THE COMMISSION ON GOVERNMENT EFFICIENCY CREATED BY SECTION
24 24-50-515.
25 (b) COST SAVINGS SHALL BE UTILIZED BY THE STATE AGENCY AS
26 FOLLOWS:
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1 (I) IN THE EVENT THAT THE STATE AGENCY DETERMINES, IN
2 CONSULTATION WITH THE LABOR-MANAGEMENT COOPERATION COUNCIL,
3 THAT MANAGED COMPETITION FOR THE PERSONAL SERVICES CONTRACT
4 WAS IMPLEMENTED AS A RESULT OF EMPLOYEE INITIATIVE, THEN UP TO
5 ONE-HALF OF SUCH AMOUNT MAY BE DISTRIBUTED AS BONUSES TO THE
6 EMPLOYEES IN THE BUSINESS UNIT THAT PERFORMED THE PERSONAL
7 SERVICES UNDER THE CONTRACT UNDER AN EMPLOYEE BONUS AWARD
8 PLAN ESTABLISHED BY THE STATE AGENCY AND APPROVED BY THE
9 GOVERNOR; EXCEPT THAT NO BONUS AWARDED TO AN EMPLOYEE MAY
10 EXCEED AN AMOUNT EQUAL TO TWO TIMES THAT EMPLOYEE'S ANNUAL
11 SALARY.
12 (II) UP TO ONE-HALF OF SUCH AMOUNT MAY BE RETAINED AND
13 EXPENDED BY THE STATE AGENCY TO IMPROVE THE WORKPLACE
14 CONDITIONS OF THE EMPLOYEES IN THE BUSINESS UNIT THAT PERFORMED
15 THE PERSONAL SERVICES UNDER THE CONTRACT.
16 (III) IN THE EVENT EMPLOYEES IN THE BUSINESS UNIT ARE
17 AWARDED THE MAXIMUM BONUS ALLOWED PURSUANT TO SUBPARAGRAPH
18 (I) OF THIS PARAGRAPH (b) AND THE STATE AGENCY DETERMINES, IN
19 CONSULTATION WITH THE LABOR-MANAGEMENT COOPERATION COUNCIL,
20 THAT THE BALANCE OF THE COST SAVINGS ALLOCATED PURSUANT TO
21 SUBPARAGRAPH (II) OF THIS PARAGRAPH (b) EXCEEDS THE REASONABLY
22 NECESSARY RETAINED EARNINGS FOR IMPROVED EFFICIENCY OF THE
23 EMPLOYEES IN THE BUSINESS UNIT, THE EXECUTIVE DIRECTOR OF THE
24 STATE AGENCY MAY ALLOCATE SUCH EXCESS COST SAVINGS TO OTHER
25 PROGRAMS OR FUNCTIONS WITHIN THE STATE AGENCY.
26 (c) NO DISTRIBUTION OF COST SAVINGS TO A BUSINESS UNIT
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1 PURSUANT TO PARAGRAPH (b) OF THIS SUBSECTION (9) MAY BE MADE
2 UNTIL ALL OF THE TERMS OF THE PERSONAL SERVICES CONTRACT HAVE
3 BEEN COMPLETED.
4 (d) ANY DISTRIBUTION OF COST SAVINGS TO A BUSINESS UNIT OR
5 EMPLOYEE SHALL BE MADE AS A LUMP SUM PAYMENT TO SUCH BUSINESS
6 UNIT OR EMPLOYEE.
7 (e) ANY BONUS PAYABLE TO AN EMPLOYEE PURSUANT TO THIS
8 SUBSECTION (9) SHALL NOT BE SALARY TO THAT EMPLOYEE, AS THAT TERM
9 IS DEFINED IN SECTION 24-51-101 (42), FOR PURPOSES OF CALCULATING
10 ANY EMPLOYEE BENEFIT UNDER ARTICLE 51 OF THIS TITLE.
11 (f) ANY BONUS PAYABLE TO AN EMPLOYEE PURSUANT TO THIS
12 SUBSECTION (9) SHALL BE IN ADDITION TO AND SHALL NOT REDUCE ANY
13 BONUS PAYABLE TO SUCH EMPLOYEE UNDER A PERFORMANCE-BASED PAY
14 PLAN PURSUANT TO SECTION 24-50-104 (1).
15 (10) A STATE AGENCY MAY NOT SELL, DISPOSE OF, OR OTHERWISE
16 TRANSFER CONTROL OR OWNERSHIP OF STATE-OWNED EQUIPMENT OR
17 FACILITIES TO ANY PRIVATE ENTITY THAT IS A PARTY TO A PERSONAL
18 SERVICES CONTRACT WITH THAT STATE AGENCY OR TO ANY OTHER PERSON
19 FOR THE PURPOSE OF ALLOWING THE STATE AGENCY TO ENTER INTO THAT
20 CONTRACT. NOTHING IN THIS SUBSECTION (10) SHALL PROHIBIT A STATE
21 AGENCY FROM LEASING, AT FAIR MARKET VALUE, STATE-OWNED
22 EQUIPMENT OR FACILITIES TO A PRIVATE ENTITY PURSUANT TO A WRITTEN
23 AGREEMENT BETWEEN THE STATE AGENCY AND THE PRIVATE ENTITY.
24 (11) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE
25 MANAGED COMPETITION FOR ALL PERSONAL SERVICES CONTRACTS
26 AUTHORIZED BY SECTIONS 24-50-503 AND 24-50-504, AND SUCH
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1 CONTRACTS MAY BE ENTERED INTO WITHOUT MANAGED COMPETITION.
2 (12) ANY STATE AGENCY THAT IMPLEMENTS MANAGED
3 COMPETITION FOR A PERSONAL SERVICES CONTRACT SHALL PRESENT AN
4 ANNUAL STATUS REPORT ON SUCH IMPLEMENTATION ON OR BEFORE
5 JANUARY 1 OF EACH YEAR TO THE GOVERNOR'S OFFICE, THE STATE
6 PERSONNEL DIRECTOR, AND THE HOUSE AND SENATE STATE, VETERANS,
7 AND MILITARY AFFAIRS COMMITTEES.
8 (13) NOTWITHSTANDING THE PROVISIONS OF SECTIONS 24-50-503
9 (1) AND 24-50-504 (2), A CONTRACT BETWEEN A STATE AGENCY AND
10 BUSINESS UNIT PURSUANT TO THIS SECTION SHALL NOT CREATE AN
11 INDEPENDENT CONTRACTOR RELATIONSHIP WITH THE EMPLOYEES IN SUCH
12 BUSINESS UNIT.
13 (14) THE PROVISIONS OF SECTION 24-50-505 SHALL NOT APPLY TO
14 CONTRACTS BETWEEN A STATE AGENCY AND A BUSINESS UNIT PURSUANT
15 TO THIS SECTION.
16 (15) RECORDS CREATED OR MAINTAINED BY A BUSINESS UNIT IN
17 PREPARATION FOR SUBMITTING A BID PURSUANT TO THIS SECTION SHALL
18 NOT BE OPEN TO PUBLIC INSPECTION PURSUANT TO ARTICLE 72 OF THIS
19 TITLE UNTIL THE BIDS ARE OPENED AND THE CONTRACT AWARDED.
20 (16) A BUSINESS UNIT AND ITS EMPLOYEES SHALL HAVE THE SAME
21 APPEAL RIGHTS AS A PRIVATE BUSINESS.
22 (17) THE DISTRIBUTION OF COST SAVINGS DESCRIBED IN
23 SUBSECTION (9) OF THIS SECTION SHALL NOT BE CONSTRUED TO CONFLICT
24 WITH OR VIOLATE SECTION 24-50-507 (2) OR 24-18-201.
25 24-50-515. Commission on government efficiency - creation -
26 membership - powers - repeal. (1) THERE IS HEREBY CREATED A
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1 COMMISSION ON GOVERNMENT EFFICIENCY, TO BE COMPOSED OF NINE
2 MEMBERS AS FOLLOWS:
3 (a) THREE MEMBERS APPOINTED BY THE GOVERNOR, NO MORE
4 THAN TWO OF WHOM ARE MEMBERS OF THE SAME MAJOR POLITICAL PARTY,
5 AS DEFINED IN SECTION 1-1-104 (22), C.R.S.;
6 (b) THREE MEMBERS REPRESENTING PUBLIC EMPLOYEES AS
7 FOLLOWS:
8 (I) ONE MEMBER OF THE COLORADO ASSOCIATION OF PUBLIC
9 EMPLOYEES APPOINTED BY THE GOVERNOR;
10 (II) ONE MEMBER OF THE AMERICAN FEDERATION OF STATE,
11 COUNTY, AND MUNICIPAL EMPLOYEES APPOINTED BY THE GOVERNOR; AND
12 (III) ONE MEMBER OF THE COLORADO FEDERATION OF PUBLIC
13 EMPLOYEES APPOINTED BY THE GOVERNOR;
14 (c) ONE MEMBER OF THE COLORADO STATE MANAGERS
15 ASSOCIATION APPOINTED BY THE GOVERNOR;
16 (d) THE STATE PERSONNEL DIRECTOR OR HIS OR HER DESIGNEE;
17 AND
18 (e) THE STATE [CONTROLLER] OR HIS OR HER DESIGNEE.
19 (2) (a) OF THE FIRST MEMBERS APPOINTED TO THE COMMISSION ON
20 GOVERNMENT EFFICIENCY UNDER SUBSECTION (1) OF THIS SECTION, THE
21 FOLLOWING MEMBERS SHALL SERVE ON THE COMMISSION FOR TERMS OF
22 ONE YEAR:
23 (I) ONE OF THE THREE MEMBERS APPOINTED BY THE GOVERNOR;
24 (II) THE MEMBER OF THE AMERICAN FEDERATION OF STATE,
25 COUNTY, AND MUNICIPAL EMPLOYEES; AND
26 (III) THE MEMBER OF THE COLORADO STATE MANAGERS
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1 ASSOCIATION.
2 (b) THE REMAINING MEMBERS INITIALLY APPOINTED TO THE
3 COMMISSION ON GOVERNMENT EFFICIENCY IN ACCORDANCE WITH
4 SUBSECTION (1) OF THIS SECTION AND MEMBERS SUBSEQUENTLY
5 APPOINTED TO THE COMMISSION SHALL SERVE FOR TERMS OF TWO YEARS;
6 EXCEPT THAT A MEMBER APPOINTED TO SUCCEED ANOTHER MEMBER
7 WHOSE TERM HAS NOT EXPIRED SHALL BE APPOINTED FOR THE PERIOD OF
8 THE UNEXPIRED TERM AND MAY BE SUBSEQUENTLY APPOINTED FOR A
9 TWO-YEAR TERM.
10 (3) VACANCIES IN THE MEMBERSHIP OF THE COMMISSION ON
11 GOVERNMENT EFFICIENCY SHALL BE FILLED IN THE SAME MANNER AS
12 ORIGINAL APPOINTMENTS ARE MADE UNDER SUBSECTIONS (1) AND (2) OF
13 THIS SECTION.
14 (4) THE GOVERNOR SHALL SELECT THE CHAIRMAN OF THE
15 COMMISSION NO LATER THAN OCTOBER 1, 1999. BEGINNING IN 2000, AND
16 EACH YEAR THEREAFTER, THE COMMISSION SHALL MEET NOT LESS THAN
17 QUARTERLY UPON THE CALL OF THE CHAIRMAN. A MAJORITY OF THE
18 COMMISSION SHALL CONSTITUTE A QUORUM TO TRANSACT BUSINESS AND
19 FOR THE EXERCISE OF ANY OF THE POWERS AND DUTIES CONFERRED
20 THEREON. MEMBERS OF THE COMMISSION SHALL SERVE WITHOUT
21 COMPENSATION.
22 (5) IN CARRYING OUT ITS DUTIES IN ACCORDANCE WITH THIS
23 SECTION, THE COMMISSION ON GOVERNMENT EFFICIENCY MAY REQUEST
24 STAFF ASSISTANCE FROM THE DEPARTMENT OF PERSONNEL, WHICH
25 ASSISTANCE SHALL BE PROVIDED WITHIN AVAILABLE APPROPRIATIONS.
26 (6) THE ACTIVITIES PERFORMED BY THE COMMISSION ON
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1 GOVERNMENT EFFICIENCY IN ACCORDANCE WITH THIS SECTION SHALL BE
2 SUBJECT TO AN ANNUAL AUDIT BY THE STATE AUDITOR OR HIS OR HER
3 DESIGNEE. ON OR BEFORE MARCH 1, 2000, AND EACH YEAR THEREAFTER,
4 THE COMMISSION SHALL REPORT TO THE STATE, VETERANS, AND MILITARY
5 AFFAIRS COMMITTEES OF THE SENATE AND THE HOUSE OF
6 REPRESENTATIVES [AND TO THE JOINT BUDGET COMMITTEE] CONCERNING
7 THE COMMISSION'S ACTIVITIES DURING THE PREVIOUS YEAR.
8 (7) THE POWERS AND DUTIES OF THE COMMISSION ON
9 GOVERNMENT EFFICIENCY SHALL BE:
10 (a) TO CONDUCT RESEARCH, INCLUDING SURVEYS AND MARKET
11 TESTING, OF CURRENTLY PERFORMED GOVERNMENT FUNCTIONS,
12 INCLUDING THOSE GOVERNMENT FUNCTIONS CURRENTLY PERFORMED BY
13 THE PRIVATE SECTOR;
14 (b) TO EVALUATE AND MAKE RECOMMENDATIONS CONCERNING
15 THE APPROPRIATE FUNCTIONS OF STATE GOVERNMENT AND TO MAKE
16 RECOMMENDATIONS AS TO WHICH FUNCTIONS OF STATE GOVERNMENT
17 SHOULD BE PERFORMED BY STATE PERSONNEL SYSTEM EMPLOYEES,
18 INCLUDING THOSE GOVERNMENT FUNCTIONS CURRENTLY PERFORMED BY
19 THE PRIVATE SECTOR, AND WHICH FUNCTIONS OF STATE GOVERNMENT
20 SHOULD BE PROVIDED BY THE PRIVATE SECTOR;
21 [(c) TO TRACK AND RECORD THE CUMULATIVE AND AGGREGATE
22 COSTS AND BENEFITS OF EACH PERSONAL SERVICE CONTRACT ASSOCIATED
23 WITH IMPLEMENTING MANAGED COMPETITION AND TO PROVIDE SUCH
24 INFORMATION ANNUALLY TO THE JOINT BUDGET COMMITTEE;]
25 [(d)] TO RECOMMEND NEW STANDARDS FOR GOVERNMENT
26 EFFICIENCY, EVALUATE THE EFFECTS OF SUCH STANDARDS ON THE STATE
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1 PERSONNEL SYSTEM, AND ADVISE THE EXECUTIVE AND LEGISLATIVE
2 BRANCHES OF STATE GOVERNMENT TO IMPLEMENT CHANGES, INCLUDING,
3 BUT NOT BE LIMITED TO, CHANGES RELATING TO THE SELECTION OF
4 MANAGED COMPETITION PROJECTS;
5 [(e)] TO IDENTIFY OPPORTUNITIES FOR PRIVATIZATION;
6 [(f)] TO REVIEW AND MAKE RECOMMENDATIONS CONCERNING
7 PROPOSALS FROM STATE AGENCIES TO PRIVATIZE CERTAIN GOVERNMENT
8 FUNCTIONS;
9 [(g)] TO IDENTIFY SPECIFIC GOVERNMENT FUNCTIONS CURRENTLY
10 PERFORMED BY THE PRIVATE SECTOR THAT COULD BE PERFORMED MORE
11 EFFECTIVELY AND EFFICIENTLY BY STATE PERSONNEL SYSTEM EMPLOYEES
12 AND SHOULD THEREFORE BE TRANSFERRED TO THE APPROPRIATE STATE
13 AGENCY;
14 [(h)] TO DEVELOP GUIDELINES AND PROCEDURES FOR SOLICITING
15 PROPOSALS FOR NEW AND EXISTING PERSONAL SERVICES CONTRACTS FROM
16 PRIVATE ENTITIES AND STATE EMPLOYEES TO PERFORM SERVICES OR
17 FUNCTIONS;
18 [(i)] TO IDENTIFY AND MAKE RECOMMENDATIONS TO THE JOINT
19 BUDGET COMMITTEE CONCERNING ANY OTHER EFFICIENT MEANS OF
20 ENHANCING RESPONSIVENESS AND ACCOUNTABILITY IN STATE
21 GOVERNMENT; AND
22 [(j)] TO DEVELOP GUIDELINES FOR THE ACCOUNTING METHODOLOGY
23 THAT WILL BE APPLIED IF CERTAIN GOVERNMENTAL FUNCTIONS ARE
24 PRIVATIZED AND FOR THE IMPLEMENTATION OF MANAGERIAL COST
25 ACCOUNTING.
26 (8) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2004.
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1 [SECTION 3. No appropriation. The general assembly has
2 determined that this act can be implemented within existing
3 appropriations in FY 1999-2000, and therefore no separate appropriation
4 of state moneys is necessary to carry out the purposes of this act in FY
5 1999-2000.]
6 SECTION [4.] Effective date. This act shall take effect at 12:01
7 a.m. on the day following the expiration of the ninety-day period after
8 final adjournment of the general assembly that is allowed for submitting
9 a referendum petition pursuant to article V, section 1 (3) of the state
10 constitution; except that, if a referendum petition is filed against this act
11 or an item, section, or part of this act within such period, then the act,
12 item, section, or part, if approved by the people, shall take effect on the
13 date of the official declaration of the vote thereon by proclamation of the
14 governor.