(1) Under this act, a type 3 transfer means the abolishing of an existing department, institution, or other agency and the transferring of all or part of its powers, duties, and functions, records, personnel, property, unexpended balances of appropriations, allocations, or other funds to a principal department as specified under this act.
(2) When any department, institution, or other agency, or part thereof, is transferred by a type 3 transfer to a principal department under the provisions of this act, its prescribed powers, duties, and functions including rulemaking, regulation, and licensing; promulgation of rules, rates, regulations, and standards; and the rendering of findings, orders, and adjudications are transferred to the head of the principal department into which the department, institution, or other agency, or part thereof, has been transferred.