Mich. Comp. Laws § 421.50a

Sec. 50a. (1) As used in this act, "governmental entity" means this state or any of its instrumentalities, a county, city, township, village, school district, community college district, community hospital district, any agency authorized to exercise a governmental function in a limited geographical area, or other political subdivision, any instrumentality of 1 or more of these units, or any of these units and 1 or more other states or political subdivisions of those states. (2) An entity shall be considered a governmental entity if the entity has either of the following characteristics: (a) The entity is organized under state law with power to hire, supervise, and discharge its employees. (b) The entity may enter into contracts and sue and be sued.