The state department to which functions have been assigned by the governor shall succeed to all the rights and powers exercised, and all of the duties and obligations incurred by the counties in the exercise of the functions transferred, whether the powers, duties, and obligations are mentioned in or granted by any law, contract, or other document; provided that the counties shall not be relieved of their obligation of paying the interest and principal on bonds which have been issued for improvements related to the functions set forth above. Except as provided herein, all references to a county, in any law, contract, or document in connection with the functions assigned to the State by this chapter shall apply to the state government or respective state department as the case may be as if it were specifically named in the law, contract, or document in place of the county or any agency thereof.