(a) The state board of education or the state board of regents may authorize the leasing of public lands under its jurisdiction to fraternities and sororities for a nominal consideration for a term not exceeding ninety-nine (99) years. A majority of the state governing board is authorized and empowered to direct the chair or chancellor to execute the leases for and on behalf of the state; provided, that they are approved by the governor and the attorney general and reporter. The lease shall not be assigned; neither shall the premises be sublet nor subleased without the prior written consent of the board or its designee. Prior to the commencement of the construction or installation of any improvement, the plans and specifications pertaining to the improvement shall be approved by the state governing board or its designee. Material alterations and all additions to the improvements constructed or installed on the premises must be approved by the state governing board or its designee prior to the commencement of the alteration or additions. The properties shall be operated and maintained in accordance with the rules and regulations promulgated by the state governing board. At the end of the term of any lease, and in the event that any lessee violates its lease agreement or any rule or regulation adopted pursuant to this section, or violates this section, the lease shall terminate by operation of law and the improved premises shall become the exclusive property of the state, and the state shall immediately enter and take possession of the property. The lease may contain a provision for an option to renew the lease upon the conditions that the premises are not needed to be used for other purposes in connection with the state's educational program when the lease expires or the building and improvements are in such a state of repair as to be suitable for occupancy without major repairs, remodeling or alterations in accordance with the generally accepted standards for housing prevailing at institutions of higher learning when the lease expires. If any lease is not renewed at the end of the term, the board may pay the lessee the reasonable value of the improvements; however, in the event that the lease is not renewed, the title to the improvements shall vest in the state, which shall take possession of the premises including the improvements upon the expiration of the term.

(b) Any construction or installation of any improvements upon the property of the state board of education or the state board of regents by a fraternity or sorority pursuant to a lease agreement with such board shall be exempt from § 4-15-102(c), and from title 12, chapter 4, part 4; provided, that the fraternity or sorority shall solicit competitive bids for the construction or installation and shall award the construction or installation contract to the lowest qualified bidder unless the fraternity or sorority can secure the work from alumni or supporters at a lesser cost than the lowest qualified bid.