(1) Any executory contract or agreement, or applicable part thereof, entered into by and between this state, or any officer or agency thereof, and the United States, or any officer or agency thereof, in relation to the subject matter of this subchapter is validated, ratified, and confirmed in all respects. However, on and after October 10, 1961, the State Department for Social Security Administration Disability Determination shall be substituted for the state agency named in any contract or agreement in relation to the subject matter of this subchapter.
(2) However, nothing contained in this section shall be construed as an abridgement of the right of the department, or of the Director of the State Department for Social Security Administration Disability Determination, to enter into a new agreement to succeed to any executory contract or agreement in relation to the subject matter of this subchapter.