Pursuant to a written policy adopted by the governing board of a public institution of higher learning, as defined in § 59-103-5, the institution may expend funds from the sources listed in this section for events which recognize academic and research excellence and noteworthy accomplishments of members of the faculty and staff, students, and distinguished guests of the institution. Sources of the funds for these expenditures include only:

(1) revenues derived from athletics or other student contests;

(2) the activities of student organizations;

(3) the operations of canteens and bookstores; and

(4) approved private practice plans and all nonappropriated state funds.

The expenditures of funds from these sources pursuant to the written policy of the board for the purposes stated in this section are considered to meet the public purpose test for the expenditure of public funds. A copy of the written policy adopted by the board must be forwarded to the Commission on Higher Education.