A board of control shall maintain in connection with the training of teachers fully equipped training schools as schools of observation and practice. A board may contract with the board of education of any school district near its institution to use the schools and school property of the school district as schools of observation and practice, and may furnish equipment, teachers, administrators, employees and facilities deemed necessary to provide the observation and practice. The boards of education of these school districts may enter into such contracts and confer upon the boards of control their duties as are prescribed by law and deemed necessary by the school boards and board of control to carry out the provisions herein. Any contract heretofore entered into between the state board of education and the board of education of a school district for the purpose of providing observation and practice is continued as a binding contract between the board of control of the institution covered by such contract and the board of education of the school district.