(1) Except as provided in subsection (2) of this section, any administrative expenses and any staffing or other resource requirements associated with the office or the expenditure of moneys from the fund and the additional source fund shall be met with existing employees transferred from the department of local affairs and the Colorado office of economic development created in section 24-48.5-101 pursuant to subsection (3) of this section and with a combination of existing staff, office space, and resources of the office of the governor at the time the office is created.

(2) The board may expend moneys in the additional source fund for administrative expenses associated with the office or the expenditure of moneys from the fund or the additional source fund.

(3) (a) On and after August 1, 2000, employees of the department of local affairs prior to said date whose duties and functions concerned the duties and functions assumed by the office pursuant to this section and whose employment in the office is deemed necessary by the administrator of the office to carry out the purposes of this article shall be transferred to the office and become employees thereof.

(b) On and after March 18, 2003, three full-time equivalent personnel positions of the Colorado office of economic development created in section 24-48.5-101 shall be transferred to the Colorado tourism office created in section 24-49.7-103. The employees shall be employees appointed by the governor and not classified employees in the state personnel system.

(4) Any employees transferred to the office pursuant to paragraph (a) of subsection (3) of this section who are classified employees in the state personnel system 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 personnelsystem shall be made and processed in accordance with state personnel system laws and regulations.