[§166E-11]  Lease negotiation.  (a)  Thedepartment may negotiate and enter into leases with any person who:

(1)  Holds a revocable permit for agriculturalpurposes;

(2)  Has formerly held an agricultural lease or aholdover lease of public land that expired within the last ten years and hascontinued to occupy the land; or

(3)  Is determined by the department to have abeneficial impact on agriculture.

(b)  Lands eligible for lease negotiationsunder this section are limited to lands that are:

(1)  Zoned and used for agricultural purposes;

(2)  Set aside for agricultural uses only, by thegovernor through an executive order to the department; and

(3)  Not needed by any state or county agency for anyother public purpose.

(c)  In negotiating and executing alease as authorized, the board shall:

(1)  Require the appraisal of the parcel usingstandards of national appraiser organizations to determine the rental,including percentage rent;

(2)  Require the payment of a premium, computed attwenty-five per cent of the annual lease rent, with the premium to be added tothe annual lease rent for each year of the lease equal to the number of yearsthe lessee has occupied the land, except that the premium period shall notexceed four years; and

(3)  Recover from the lessee the costs of expendituresrequired by the department to convert the parcel into leasehold.

The department shall notify in writing thoseeligible for lease negotiations under this section and shall inform theapplicants of the terms, conditions, and restrictions provided by thissection.  Any eligible person may apply for a lease by submitting a writtenapplication to the department within thirty days from the date of receipt ofnotification; provided that the department may require documentary proof fromany applicant to determine that the applicant meets eligibility andqualification requirements for a lease. [L 2006, c 157, pt of §1]