(1) The following definitions apply to every statute, unless the context otherwise requires: (a) "Entity" means a principal department of the state or any division, institution, or part of a principal department, or any agency, board, commission, or unit of state government that is created in or assigned to a principal department of the state. "Entity" includes an individual carrying out powers or exercising duties or functions. (b) "Type 1 entity" means an entity that is administered under the direction and supervision of a principal department established in this article 1, but exercises its prescribed statutory powers and performs its prescribed duties and functions, including rule-making, regulation, licensing, and registration; the promulgation of rules, rates, regulations, and standards; and the rendering of findings, orders, and adjudications, independently of the head of the principal department. Under a type 1 entity, any powers, duties, and functions not specifically vested by statute in the entity, including, but not limited to, all budgeting, purchasing, planning, and related management functions of the entity, are performed under the direction and supervision of the head of the principal department. (c) "Type 2 entity" means an entity whose statutory authority, powers, duties, and functions, including the functions of budgeting, purchasing, and planning, are under the direction and supervision of the head of the principal department. (2) When a new entity is created, the entity exercises its powers and performs its duties and functions in the principal department in which it is created as a type 1 or type 2 entity, as specified in law. When an existing entity is transferred from one principal department to another principal department, the entity exercises its powers and performs its duties and functions in the principal department to which it was transferred as a type 1 or type 2 entity, as specified in law. When an existing entity is abolished, all or part of the powers, duties, and functions of the abolished entity as well as its records, personnel, property, and unexpended balances of appropriations, allocations, or other money, may be transferred to another entity as specified in law.
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