(1) Subject to subsection (2), the Michigan geological survey is established within western Michigan university and shall continue as an entity within a governing institution. The governing institution shall do both of the following:

    (a) Oversee the operations of the Michigan geological survey.

    (b) Appoint a director to supervise and carry out the duties of the Michigan geological survey.

    (2) If western Michigan university, or a successor governing institution under this subsection, ceases to have an academic program that is primarily engaged in the study of geology or geosciences or substantially fails to fulfill the duties of the Michigan geological survey under this part in an adequate manner, or if the governing institution notifies the state geologist that it does not desire the Michigan geological survey to remain as an entity within that governing institution, the director of the department of environmental quality shall issue an order to transfer the Michigan geological survey to and establish it within another state university that has an academic program that is primarily engaged in the study of geology or geosciences. Before issuing an order under this subsection, the director of the department of environmental quality shall do all of the following:

    (a) Provide public notice, including notice to the legislature, and an opportunity for public comment.

    (b) Consider the recommendations of the state geologist.

    (3) The Michigan geological survey may enter into an agreement with any state university to perform designated duties described in sections 60104 to 60106. Subject to the terms of the agreement, the state university entering into the agreement with the Michigan geological survey, or a department or office of that state university, may directly receive money or other assets to implement the agreement in the same manner as the Michigan geological survey under section 60108.