(a) Under this act, a type 4 transfer means the transferring of all or part of an existing department, institution, or other agency to a principal department established by this act in the following circumstances:
(1) When all or part of any department, institution, or other agency is transferred to a principal department under a type 4 transfer, the board, commission, or other governing body of the transferred department, institution, or other agency is retained and shall continue to exercise its statutory authority, powers, duties, and functions;
(2) The director of the department, institution, or other agency shall be nominated by the board or commission or governing body of the transferred department, institution, or other agency subject to confirmation by the Governor. The director shall serve at the pleasure of the Governor; and
(3) All records, personnel, property, unexpended balances of appropriations, allocations, or other funds, including the functions of budgeting and purchasing, are transferred to the principal department.
(b) Following a type 4 transfer, the members of any statutory board or commission so transferred and their successors shall continue to be selected in the manner and serve for the terms provided by the statutes applicable to the board or commission as such statutes may from time to time be amended.
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