Sec. 1. With the approval of the governor, the director may do the following:
(1) Establish a separate state institution for the purposes of observing, diagnosing, or treating alcohol abusers or drug abusers.
(2) Transfer any part of the programs, records, and property at another state institution administered by the division relating to the observation, diagnosis, and treatment of alcohol abusers or drug abusers and the unused property at the other state institution to the state institution established under subdivision (1).