(1)  If the Governor is satisfied that it is necessary or desirable in order to give effect to a reallocation of activities from a State authority that is not an Agency to the State Service, the Governor may, by order, determine in writing that a person employed by a State authority that is not an Agency ceases to be employed by that authority and becomes an employee in a specified Agency.

(2)  The regulations may prescribe arrangements for determining any variation of the salary and conditions of employment applicable to persons who become employees under subsection (1) .