(1) (a) Any employee of university hospital who was a member of the state personnel system and was employed by university hospital on September 30, 1989, and who elected to become an employee of the part 4 corporation may become an employee of the authority on the authority's transfer date or may elect to return to classified employment in the state personnel system and may reserve the right to be employed by the authority.

(b) Any such employee of the part 4 corporation who elects to return to the state personnel system shall have restored all rights and privileges of membership in the state personnel system.

(2) (a) Any employee of university hospital who was a state employee but not a member of the state personnel system and was employed by university hospital on September 30, 1989, and who elected to become an employee of the part 4 corporation may become an employee of the authority on the authority's transfer date or may elect to return to state employment status andmay reserve the right to be employed by the authority.

(b) Any such employee of the part 4 corporation who elects to become a state employee not a member of the state personnel system shall have restored all rights and privileges of a state employee not a member of the state personnel system.

(3) (a) Any employee initially employed by the part 4 corporation on and after October 1, 1989, and continuously employed thereafter, may become an employee of the authority on the authority's transfer date or may elect to be a state employee in the state personnel system or a state employee not a member of the state personnel system, whichever is applicable to such employee's position.

(b) Any such employee of the part 4 corporation who elects to become a state employee in the state personnel system or a state employee not a member of the state personnel system shall have all rights and privileges of the state employment status which is applicable to such employee's position.

(4) Any election provided for in this section shall be made no later than one hundred twenty days after the authority's transfer date.