(1) In consultation with appropriate state and local governmental agencies, the Governor's Policy Research Office may prepare, or cause to be prepared, and issue on behalf of the Governor, a series of medium-range or long-range development plans on a specific subject or service area of government. Such plans, called functional plans, may include one of the following subject areas: Outdoor recreation, water resources, transportation, law enforcement and the administration of criminal justice, housing, education, social and economic development, physical and mental health services and facilities, employment, poverty, manpower development, and other broad areas of state responsibility.

(2) The Governor, through the Governor's Policy Research Office, may direct each department, agency, and institution of the state to designate from among its employees and officers a planning officer who shall be directly responsible to the chief executive officer of the department, agency, or institution for internal and interagency planning and programming activities and who shall maintain continuing liaison with personnel of the Governor's Policy Research Office.

(3) Functional plans, whether specifically required as a condition to federal loans or grants or not, prepared by transportation authorities, natural resources districts, state departments, agencies, or institutions, shall be issued only after review and approval by the Governor's Policy Research Office.

(4) Functional plans and revisions thereof may be transmitted to the Legislature by the Governor for its consideration and action.