(a)      (1)      In this section the following words have the meanings indicated.

            (2)      "Administrator" means the chief administrative officer of a county or municipal corporation.

            (3)      "Department head" means the head of a separate unit of a county or municipal corporation who reports directly to an elected executive or administrator or directly to the governing body of the county or municipal corporation.

            (4)      "Employee" does not include an elected official, a department head, or an administrator.

            (5)      "Regional agency" means an agency created under State law that provides governmental services to more than one political subdivision.

      (b)      (1)      A county or municipal corporation may not require an employee to reside within the State, county, or municipal corporation or within a required distance of the State, county, or municipal corporation as a condition of employment.

            (2)      Subject to subsection (c) of this section, a county or municipal corporation may not discriminate between residents and other citizens of the State or any other state in employment, promotion, demotion, layoff, and discharge decisions.

      (c)      A county or municipal corporation may grant a resident of the State, county, or municipal corporation additional points or credits in employment or promotion decisions if the points or credits are provided under provisions of a merit system established by the county or municipal corporation by local law or ordinance.

      (d)      A regional agency may not require an employee as a condition of employment to reside within the State or a political subdivision for which the regional agency provides governmental services or within a required distance of the State or a political subdivision for which the agency provides governmental services.