11-1437. Transfer of county employees

A. The operating agreement:

1. Shall include provisions to ensure that all employees of the county health system are considered for employment by the nonprofit corporation.

2. May include provisions with respect to the transfer of county health system employees, including appropriate arrangements for hiring preferences, employee seniority, rates of pay, benefits, accrued leave and retirement benefits and for financial adjustments and settlements.

B. The nonprofit corporation shall allow employees chosen to perform services under the operating agreement who have ten or more years of credited service with the county health system as of the transfer date and employees who are within four years of becoming eligible for retirement benefits under the Arizona state retirement system as of the transfer date to remain at their option as employees of the sponsoring county on loan to the corporation for purposes of membership in the Arizona state retirement system for up to four years. The corporation shall pay all costs incurred by the county to implement this subsection. The sponsoring county may pay any amounts received from the corporation under this subsection to the Arizona state retirement system regardless of whether the county budgeted the expenditure pursuant to section title 42, chapter 17, article 3. All amounts received by the county from the corporation under this subsection are considered to be held by the county as a custodian pursuant to article IX, section 20, subsection (3), paragraph (d), subdivision (iii), Constitution of Arizona.

C. This chapter shall not be construed to require the nonprofit corporation to employ any employee of the county or the county health system.