(1) There is hereby created the division of veterans affairs within the department of military and veterans affairs, the head of which shall be the director of the division of veterans affairs who shall be appointed by the adjutant general acting in his or her capacity as the administrative head of the department. The director shall appoint such assistants and clerical employees as may be deemed necessary to effectively administer this part 7 and part 8 of this article. The director and such assistants and employees shall be appointed pursuant to section 13 of article XII of the state constitution.

(2) Whenever any law of this state refers to the Colorado department of veterans affairs or to the veterans affairs section, said law shall be construed as referring to the division of veterans affairs.

(3) The division and the board shall, on and after July 1, 2002, execute, administer, perform, and enforce the rights, powers, duties, functions, and obligations vested in the department of human services pursuant to articles 9 and 10 of title 26, C.R.S., prior to said date. On and after July 1, 2002, any officers or employees of the department of human services whose primary duties were to carry out the functions specified in articles 9 and 10 of title 26, C.R.S., prior to said date and whose duties and functions concerned the duties and functions transferred to the division pursuant to this part 7 and part 8 of this article, and whose employment in the division is deemed necessary by the 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 the 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 regulations.

(4) (a) On July 1, 2002, all items of property, real and personal, including office furniture and fixtures, books, documents, and records of the department of human services prior to said date pertaining to the duties and functions transferred to the division pursuant to this part 7 and part 8 of this title are transferred to the department and become the property thereof.

(b) On or before September 1, 2002, the department of human services and the department of military and veterans affairs shall agree on the method, scope, and procedures for the transfer of any property, mineral, and water rights involving the western slope military veterans cemetery, as described in section 28-5-708, in order to ensure that the use of said cemetery is continuous and consistent with federal law.

(c) The general assembly requests the department of human services and the state board of land commissioners to transfer, without compensation, by any procedure necessary, any appropriate property, mineral, and water rights involving the western slope military veterans' cemetery, as described in section 28-5-708, to the department of military and veterans affairs, within two months of the completion of a legal survey of the property described in section 28-5-708.

(d) The general assembly further requests the department of human services and the state board of land commissioners to report to the state, veterans, and military affairs committees of the senate and house of representatives, or their successor committees, no later than July 15, 2005, that the transfer of appropriate property, mineral, and water rights requested in paragraph (c) of this subsection (4) has been completed.

(5) Whenever the department of human services is referred to or designated by a contract or other document in connection with the duties and functions transferred to the division pursuant to this part 7 and part 8 of this article, such reference or designation shall be deemed to apply to the department of military and veterans affairs. All contracts entered into by the department of human services prior to July 1, 2002, in connection with the duties and functions transferred to the department of military and veterans affairs pursuant to this part 7 and part 8 of this article are hereby validated, with the department of military and veterans affairs 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 for the payment of such obligations.