(1) Any employee of university hospital who is a state employee on the transfer date under this part 5 may elect to remain a state employee or become an employee of the authority. Said employee may elect to become an employee of the authority at any time but shall not thereafter return to state employment status while employed by the authority. No state employee shall be discriminated against in training, promotion, retention, assignment of duties, granting of rights and benefits, or any other personnel action. Promotion or a change in position shall not be contingent upon the employee becoming an employee of the authority.

(2) Any employee who elects to remain a state employee shall retain all rights and privileges of the state employment status which is applicable to such employee's position.

(3) In the case of any dispute involving an employee who is a member of the state personnel system, university hospital and the authority shall agree to accept resolution of all disciplinary appeals or other employment disputes governed by the statutes of the state personnel system or the rules of the state personnel department according to the rules and procedures applicable to members of the state personnel system.

(4) Any employee who elects to become an employee of the authority shall receive full credit for sick leave and annual leave accrued while employed by university hospital.

(5) Any employee initially employed by the authority operating university hospital pursuant to this part 5 on or after the transfer date under this part 5 shall be deemed to be an employee of the authority created under this part 5 and not a state employee.

(6) The authority is authorized to contract with the university of Colorado health sciences center through the state personnel board pursuant to section 13 (4) of article XII of the state constitution for personnel.