(a) The commission, as provided by law and by legislative appropriation, may:
(1) acquire necessary real and personal property and modernize, remodel, build, or equip buildings for state purposes; and
(2) contract as necessary to accomplish these purposes.
(b) The commission may not sell or otherwise dispose of real property of the state except:
(1) for real property located in the Capitol Complex, by specific authority:
(A) granted by the legislature if the legislature is in session; or
(B) granted jointly by the governor and the Legislative Budget Board if the legislature is not in session; or
(2) for real property of the state other than the property described by Subdivision (1):
(A) by specific authority granted by the legislature if the legislature is in session; or
(B) subject to Subsection (e), through formal notification to the governor and the Legislative Budget Board if the legislature is not in session.

(c) The commission may enter into a contract with the City of Austin to govern the transfer, sale, or exchange of real property and interests in real property, including the vacation of street rights-of-way, easements, and other interests, as necessary or advantageous to both parties. The agreement may provide for the transfer, sale, or exchange by one party in favor of the other for a reasonable value established by the parties and may provide for a transfer, sale, or exchange to be credited against future property or interests to be transferred, sold, or exchanged between the parties. § 272.001, Local Government Code, does not apply to a transaction governed by this section.
(c-1) If an agreement under Subsection (c) provides for a transfer, sale, or exchange to be credited against future property or interests to be transferred, sold, or exchanged between the parties, the City of Austin may use any amount credited in the city’s favor in a transfer, sale, or exchange of real property or an interest in real property with any state agency other than an institution of higher education as defined by § 61.003, Education Code.
(d) When considering a sale of real property of the state subject to Subsection (b)(2), the commission shall submit a formal notification of the intent to sell the property to:
(1) the governor;
(2) the Legislative Budget Board; and
(3) each state senator and representative in whose district the property is located.
(e) The governor may disapprove the sale of real property of the state subject to Subsection (b)(2) by providing written notice of the disapproval to the commission not later than the 90th day after the date the governor receives the formal notification required by Subsection (d).
(f) On request by the commission, the General Land Office shall negotiate and close a sale of real property of the state under this section on behalf of the commission using procedures established in § 31.158(c), Natural Resources Code, except the land office is not required to offer the School Land Board the first option to purchase the real property.
(g) Each transfer of an interest in real property of the state under this section must be made by an instrument signed by the executive director of the commission and the governor.
(h) The proceeds from the sale, lease, or other disposition of real property of the state under this section shall be deposited to the Texas capital trust fund established under Chapter 2201 and dedicated to the acquisition, construction, repair, and improvement of state facilities. Before depositing proceeds in the fund, the commission may recover from the proceeds all amounts spent by the commission for management, acquisition, and disposition expenses.
(i) Sections 403.095 and 2201.003(b) do not apply to proceeds deposited in the Texas capital trust fund in accordance with this section.