LEASE OF REAL PROPERTY

(a) The department, in coordination with the executive commissioner, may lease real property related to the provision of services under this title, including any improvements under the department's management and control, regardless of whether the property is surplus property. Except as provided by Subsection (c), the department, in coordination with the executive commissioner, may award a lease of real property only: (1) at the prevailing market rate; and (2) by competitive bid. (b) The commission shall advertise a proposal for lease at least once a week for four consecutive weeks in: (1) a newspaper published in the municipality in which the property is located or the daily newspaper published nearest to the property's location; and (2) a newspaper of statewide circulation. (c) The department, in coordination with the executive commissioner, may lease real property related to the provision of services under this title or an improvement for less than the prevailing market rate, without advertisement or without competitive bidding, if: (1) the executive commissioner determines that sufficient public benefit will be derived from the lease; and (2) the property is leased to: (A) a federal or state agency; (B) a unit of local government; (C) a not-for-profit organization; or (D) an entity related to the department by a service contract. (d) The executive commissioner shall adopt leasing rules, forms, and contracts that will protect the state's interests. (e) The executive commissioner may reject any bid. (f) This section does not authorize the executive commissioner or department to close or consolidate a facility used to provide mental health services without legislative approval. (g) Notwithstanding Subsections (a) and (b), the executive commissioner, in coordination with the department, may enter into a written agreement with the General Land Office to administer lease proposals. If the General Land Office administers a lease proposal under the agreement, notice that the property is offered for lease must be published in accordance with Section 32.107, Natural Resources Code.