“Employment” for the purposes of this part means: (

a) Service included in “employment” as defined by

Part 1 (commencing with

Section 100) of this division, except that with respect to service for any public entity as defined by

Section 605 “employment” for the purposes of this

part includes only:

(1) Service for a hospital established, maintained and operated pursuant to Division 23 (commencing with

Section 32000) of the Health and Safety Code.

(2) Service performed for a public housing administration agency whether operated by state or local governmental subdivisions.

(3) Service performed by a state employee to the extent provided by

Section 2781.

(4) Service covered under this part by an elective coverage agreement. (

b) Notwithstanding any other provision of this division, all service performed in the employ of a corporation, community chest, fund, or foundation, in connection with the operation of a health facility as defined in

Section of the Health and Safety Code including the institutions described in subdivision (

a) of

Section of the Health and Safety Code but not including county hospitals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office and which is exempt from income tax under

Section 501(

a) of the Internal Revenue Code of 1954, except service performed by an individual as a duly ordained priest, clergyman, rabbi, rector, vicar, pastor, or minister of religion, or by a practitioner who heals the sick by prayer in the practice of religion, or by a reader whose duty it is to conduct regular religious services of a religious organization, or by a member of a religious order in the exercise of duties required by the order, or by any other individual performing service in the practice of religion by designation of the governing body of a religious organization and subject to discipline by, including removal by, the governing body. This

section shall become operative on July 1, 1978.