In the performance of his duties, the director is empowered and authorized to enter into contracts and to assume such other functions as are necessary to carry out the provisions of this chapter that are not inconsistent with law. The director may make and enter into contracts with other boards, commissions, agencies and institutions of this state or other states, public or private, upon such terms as may be mutually agreed upon, and to have such studies and research activities conducted as may be necessary and proper, the costs thereof to be paid out of funds which may be appropriated to the division.