Sec. 7. (a) The secretary may act for the division in entering into contracts for the disbursal of money and the providing of service.
(b) Before entering into a contract under this section, the secretary shall submit the contract to the attorney general for approval as to form and legality.
(c) A contract under this section must do the following:
(1) Specify the services to be provided and the client populations to whom services must be provided.
(2) Provide for a reduction in funding for the failure to comply with terms of the contract.