(1) The cabinet is hereby designated as the single state agency for the purpose of carrying out a statewide milk control program within budgetary limitations. The cabinet may allot funds or contract with any local health department to carry out an approved milk control program in accordance with the provisions of this chapter. In the event a local department's program is not maintained in approved status, the cabinet may assume operation and control of the local program within budgetary limitations.
(2) In the event the cabinet assumes the responsibility for any existing milk program being conducted by a local health department the employees thereof may, with the approval of the cabinet, be accepted as employees of the cabinet and assigned to equivalent classifications pursuant to applicable state merit system regulations, without examination.