§ 45. Status of employees upon acquisition of private institution or
enterprise by government. 1. Whenever the state or any civil division or
public agency shall acquire a private institution or enterprise, for the
purpose of operating it as a public function, such civil division, or
public agency, as the case may be, may continue the employment of all
officers or employees thereof deemed necessary, who shall have been in
the employ of such private institution or enterprise for at least one
year prior to such acquisition. The positions so held by such employees
shall be in the non-competitive class, pending the classification or
reclassification of such positions as hereinafter directed, and such
employees shall continue to be employed in similar or corresponding
positions and shall have the seniority theretofore held by them as among
themselves. The state civil service department or municipal commission
having jurisdiction, however, after notice to any such employee, of the
reasons therefor, and after according such employee a hearing, may
exclude him or her from further employment if found by such department
or municipal commission not to be a person of good character.
Notwithstanding the provisions of this section, no person shall be
continued in employment in a position classified in the competitive
class pursuant to the provisions of this subdivision unless he or she is
a citizen or a noncitizen lawfully admitted for permanent residence in
the United States.

2. Not later than one year after the acquisition of such private
institution or enterprise, the state or municipal civil service
commission having jurisdiction shall determine for which positions or
class of positions competitive examinations are practicable and shall
adopt rules classifying and reclassifying the various positions. The
then incumbents of such positions who are employed therein at the time
of the acquisition of the private institution or enterprise and who were
so employed for at least one year prior to such acquisition shall
continue to hold their positions without further examination and shall
have all the rights and privileges of the jurisdictional class to which
such positions may be allocated; provided, however that after such
acquisition all new positions thereafter created and vacancies occurring
in positions already established shall be filled in accordance with the
provisions of this chapter and the rules adopted thereunder.