(1) The department shall, on and after July 1, 1991, execute, administer, perform, and enforce the rights, powers, duties, functions, and obligations vested in the state department of highways as a principal department prior to July 1, 1991, concerning the duties and functions transferred to the department pursuant to this article. On and after July 1, 1991, the officers and employees of the state department of highways as a principal department prior to said date whose duties and functions concerned the duties and functions transferred to the department pursuant to this article and whose employment in the department of transportation is deemed necessary by the executive director to carry out the purposes of this article shall be transferred to the department and become employees thereof. Such employees shall retain all rights to state personnel system and retirement benefits pursuant to the laws of this state, and their services shall be deemed to have been continuous. All transfers and any abolishment of positions in the state personnel system shall be made and processed in accordance with state personnel system laws and rules and regulations. (2) On July 1, 1991, all items of property, real and personal, including office furniture and fixtures, books, documents, and records of the state department of highways pertaining to the duties and functions transferred to the department pursuant to section 24-1-128.7, C.R.S., are transferred to the department of transportation and become the property thereof. (3) The provisions of subsections (1) and (2) of this section shall not apply to functions, employees, and property transferred under the provisions of section 24-42-104, C.R.S. (4) Whenever the state department of highways is referred to or designated by any contract or other document in connection with the duties and functions transferred to the department pursuant to this article, such reference or designation shall be deemed to apply to the department of transportation pursuant to this article. All contracts entered into by the state department of highways as a principal department prior to July 1, 1991, in connection with the duties and functions transferred to the department pursuant to this article are hereby validated, with the department of transportation created by this article succeeding to all the rights and obligations of such contracts. Any appropriations of funds from prior fiscal years open to satisfy obligations incurred pursuant to such contracts are hereby transferred and appropriated to the department of transportation created by this article for the payment of such obligations.
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