(a) To assist in the transition of functions, until July 1, 2000, the State Merit System of Personnel Administration shall perform payroll, accounting, and purchasing services and other general support services on behalf of the Division of Public Employee Health Benefits.

(b) All persons employed in a predecessor agency on June 30, 1999, shall, on July 1, 1999, become employees of the department within the division which such predecessor agency has become. Such employees shall be subject to the employment practices and policies of the department on and after July 1, 1999, but the compensation and benefits of such transferred employees shall not be reduced as a result of such transfer. Employees who are subject to the rules of the State Personnel Board and thereby under the State Merit System of Personnel Administration and who are transferred to the department shall retain all existing rights under the State Merit System of Personnel Administration. Retirement rights of such transferred employees existing under the Employees' Retirement System of Georgia or other public retirement systems on June 30, 1999, shall not be impaired or interrupted by the transfer of such employees and membership in any such retirement system shall continue in the same status possessed by the transferred employees on June 30, 1999. Accrued annual and sick leave possessed by said employees on June 30, 1999, shall be retained by said employees as employees of the department.

(c)(1) The department shall conform to federal standards for a merit system of personnel administration in any respects necessary for receiving federal grants and the board is authorized and empowered to effect such changes as may, from time to time, be necessary in order to comply with such standards.

(2) The department is authorized to employ, on a full-time or part-time basis, such medical, supervisory, institutional, and other professional personnel and such clerical and other employees as may be necessary to discharge the duties of the department under this chapter. The department is also authorized to contract for such professional services as may be necessary.

(3) Classified employees of the department under this chapter shall in all instances be employed and dismissed in accordance with rules of the State Personnel Board.

(4) All personnel of the department are authorized to be members of the Employees' Retirement System of Georgia as provided in Chapter 2 of Title 47. All rights, credits, and funds in that retirement system which are possessed by state personnel transferred by provisions of this chapter to the department, or otherwise had by persons at the time of employment with the department, are continued and preserved, it being the intention of the General Assembly that such persons shall not lose any rights, credits, or funds to which they may be entitled prior to becoming employees of the department.

(d) The department shall succeed to all rules, regulations, policies, procedures, and administrative orders of the predecessor agencies which were in effect on June 30, 1999, or scheduled to go into effect on or after July 1, 1999, and which relate to the functions transferred to the department by this chapter. Such rules, regulations, policies, procedures, and administrative orders shall remain in effect until amended, repealed, superseded, or nullified by proper authority or as otherwise provided by law.

(e) The rights, privileges, entitlements, and duties of parties to contracts, leases, agreements, and other transactions entered into before July 1, 1999, by any predecessor agency and which pertain to the functions transferred to the department by this chapter shall continue to exist; and none of these rights, privileges, entitlements, and duties are impaired or diminished by reason of the transfer of the functions to the department. In all such instances, the Department of Community Health shall be substituted for the predecessor agency, and the Department of Community Health shall succeed to the rights and duties under such contracts, leases, agreements, and other transactions.

(f)(1) The Governor is authorized to transfer to the Division of Public Employee Health Benefits of the department, by executive order, employees of the State Merit System of Personnel Administration who were performing functions for the Health Benefit Services Division of that system on June 30, 1999, whether or not they were also performing functions other than functions for that division. Employees so transferred shall become employees of the Division of Public Employee Health Benefits of the department.

(2) The commissioner is authorized to transfer department employees from one division to another division within the department.