(a) Any person who is employed by a state-owned educational television station as defined by § 8-35-119 may continue participation in the state insurance program by notifying the state insurance committee of the person's intent to participate and by making the required employee payments for coverage. Notice shall be given within ninety (90) days of the transfer of control of the employing station. The local community agency shall be responsible for all employer costs incurred as a result of the employee electing to remain a participant in the state insurance program. Contributions shall be made at the same rate as employer contributions for state employees.

(b) It is a condition of voluntary transfer of control of a public television station from the state to the control of another licensee that the new licensee establish a system of sick leave, annual leave and other benefits for its employees that it deems proper, the terms of which shall be entirely within the discretion of the new licensee. However, the new licensee must establish an individual account of benefits for each person employed at the time of transfer of control.

(c) At the time of transfer of control of a television station from the state to any other licensee, the state shall certify to the new licensee the number of days of sick leave, annual leave and compensatory time accrued by each employee while in state service, and the accrued benefits shall be recorded in the individual account of each employee by the new licensee.

(d) At the time accrued sick or annual leave benefits or compensatory time are used by an employee of a television station formerly under state control, the new licensee shall bill the state; and the state shall pay to the new licensee a sum equal to the value of the sick or annual leave or compensatory time used by the employee. These payments shall only be made in the case of use of leave or compensatory time accrued by former employees of the state while those persons were employed by the state.

(e) At the time of retirement of any employee of an eligible Tennessee public television station, the employer shall certify to the retirement system the balance of unused sick leave for purposes of calculating retirement credit; provided, that the retiring employee is a member of the state retirement system. A station employee shall be entitled to sick leave credit on the same basis as an employee of the state.