(1) Except as hereinafter provided, all hiring for the classified service shall be on the basis of competitive examinations and certification by the cabinet in accordance with the provisions of KRS 18A.005 to 18A.200.
(2) As of February 29, 1976, when an entity and its employees, either initially or subsequently, is brought into the state service, all employees of that entity required to be covered under the classified service shall be required to meet the minimum qualifications for the positions to which they are assigned and to satisfactorily complete a probationary period, except that in the discretion of the secretary they shall not be required to take an examination. The secretary shall equitably assign such employees within the salary range of an appropriate pay grade. Upon the recommendation of the appointing authority, the secretary may authorize the credit of the amount of sick leave the employee had prior to being brought into state service. After completion of the initial probationary period employees employed under this statute shall be credited with the amount of service they had with this previous entity for accumulation of annual leave and other purposes of this chapter.