(a) The institute may receive:
(1) funds from the federal government or the state government, including funds from:
(A) direct appropriations to the institute;
(B) an agreement under Chapter 771 or 791, Government Code; or
(C) a contract under Subtitle D, Title 10, Government Code, including funds received as a vendor in a proprietary purchase made under Section 2155.067, Government Code; and
(2) pledges or gifts from private sources.
(b) The board of directors of the center shall manage and approve disbursement of all funds, pledges, and gifts.
(c) The use of state funds is limited to expenditures for basic and applied research and analysis, excluding construction costs.