(1) As used in this section, "appointee" means:
(a) a deputy director;
(b) a division director;
(c) any assistant directors and administrative assistants who report directly to a department head, deputy director, or their equivalent; and
(d) any other person whose appointment is required by law to be approved by the governor.
(2) After the effective date of this chapter, any new appointee is a merit exempt employee.
(3) Notwithstanding the requirements of this chapter, any appointee who is currently a nonexempt employee does not lose that nonexempt status because of this chapter.
(4) The division shall develop financial and other incentives to encourage appointees who are nonexempt to voluntarily convert to merit exempt status.