(1) The division may designate as an area agency in a planning and service area an entity which 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) Entity includes but is not limited to:

(a) an established office on aging which operates within the planning and service area;

(b) any office or agency of a unit of general purpose local government;

(c) any combination of offices or units of general purpose local governments; or

(d) any other public or private nonprofit agency, except any regional or local agency of the state.