Be it enacted by the General Assembly of Virginia:

1. §1. Notwithstanding any other provision of law to the contrary, the local governing body of the County of Loudoun or Prince William or the City of Manassas or Manassas Park may enter into a contract with the State Board of Health (the Board) to provide local health services in such county or city. A local governing body that enters into a contract with the Board pursuant to this act shall not eliminate any service required by law or reduce the level of service below that required by law. In addition, such local governing body shall not eliminate or reduce the level of any service currently delivered in connection with the Commonwealth's program of medical assistance.

Any contract executed between the local governing body of the County of Loudoun or Prince William or the City of Manassas or Manassas Park and the Board shall set forth the rights and responsibilities of the local governing body for the delivery of health services and shall require that the local governing body, with the concurrence of the State Health Commissioner, appoint the local director of health services in accordance with local procedures, who shall be employed full time as an employee of the local governing body and shall be responsible for directing all state-mandated public health programs. All employees of the local health department operated by the local governing body shall be employees of the local governing body.

The local governing body of a county or city that enters into a contract with the Board pursuant to this act shall operate the local health department, pursuant to the terms of the contract, with such local appropriations and any state funds as may be made available to it, pursuant to the general appropriation act. State funds for the operation of health services and facilities shall continue to be allocated to the county or city as if such services were provided in a county or city without such a contract.

The local governing body of a county or city that enters into a contract with the Board pursuant to this act shall maintain and submit such financial and statistical records as may be required by the Board.

Any county or city that enters into a contract with the Board pursuant to this act shall be the sole owner of all equipment and supplies, including all equipment and supplies used by the local health department at the time of execution of the contract, that were or are purchased for providing public health services, regardless of the source of the funds for such purchases.

Notwithstanding any other provision of law to the contrary, any person who is transferred from state to local employment in accordance with a contract authorized by this act, and who is a member of the Virginia Retirement System at the time of the transfer, shall continue to be a member of the Virginia Retirement System during the period of local employment.

The power to contract conferred by this act shall not be deemed to confer any additional authority to impose fees for local health services upon a county or city that enters into a contract with the Board pursuant to this act.