[§166E-8]  Disposition.  (a)  Anyprovision of this chapter to the contrary notwithstanding, the department maydispose of:

(1)  Public lands and related facilities set aside anddesignated for use pursuant to this chapter; and

(2)  Other lands and facilities under the jurisdictionof the department pursuant to section 166E‑9 and notwithstanding chapter171,

by negotiation, drawing of lot, conversion, orpublic auction.

Except as provided by subsection (d), thedepartment shall dispose of public lands by lease.

(b)  In all dispositions, the department shallbe subject to the requirements set forth in rules adopted by the boardconsistent with section 166E-6 and subject to the following:

(1)  All land and facilities shall bedisposed of for purposes of agricultural or aquacultural activities only;

(2)  Each lessee shall derive a major portionof the lessee's total annual income earned from the lessee's activities on thepremises; provided that this restriction shall not apply if:

(A)  Failure to meet the restrictionresults from mental or physical disability or the loss of a spouse; or

(B)  The premises are fully used in theproduction of crops or products for which the disposition was granted;

(3)  The lessee shall comply with all federaland state laws regarding environmental quality control;

(4)  The board shall:

(A)  Determine the specific uses forwhich the disposition is intended;

(B)  Parcel the land into minimum sizeeconomic units sufficient for the intended uses;

(C)  Make, or require the lessee to make,improvements that are required to achieve the intended uses;

(D)  Set the upset price or lease rentbased upon an appraised evaluation of the property value, adjustable to thespecified use of the lot;

(E)  Set the term of the lease that shallbe not less than fifteen years nor more than sixty-five years, including anyextension granted for mortgage lending or guarantee purposes; and

(F)  Establish other terms and conditionsit deems necessary, including but not limited to restrictions againstalienation and provisions for withdrawal by the board; and

(5)  Any transferee, assignee, or sublesseeof a non-agricultural park lease shall first qualify as an applicant under thischapter.  For the purpose of this paragraph, any transfer, assignment, sale, orother disposition of any interest, excluding a security interest, by any legalentity that holds a non-agricultural park lease shall be treated as a transferof the non-agricultural park lease and shall be subject to the approval of theboard and to reasonable terms and conditions, consistent with this chapter orrules of the board that the board may deem necessary.  No transfer shall beapproved by the board if the disposition of the stock or assets or otherinterest of the legal entity would result in the failure of the entity toqualify for a non-agricultural park land lease.

(c)  After notice of the breach or default asprovided in rules adopted by the board consistent with section 166E-6, aviolation of any provision in this section shall be cause for the board tocancel the lease and take possession of the land.

(d)  The board may issue easements, licenses,permits, and rights-of-entry for uses that are consistent with the purposes forwhich the lands were set aside or are otherwise subject to the authority of thedepartment pursuant to section 166E‑9. [L 2006, c 157, pt of §1]