(1) The department of public health and human services may designate as an area agency in a geographical area an entity that demonstrates its ability to:
(a) develop and administer an area plan for a comprehensive and coordinated system of services; and
(b) serve as the advocate and focal point for older persons in the planning and service area.
(2) An entity may be but is not limited to:
(a) an established office on aging that operates within the geographical area;
(b) an office or agency of a unit of general purpose local government, except a local office of public assistance;
(c) any combination of offices or units of general purpose local governments; or
(d) any other public or private, nonprofit agency, except a regional or local agency of the state.