§166-6  Disposition.  (a)  Any
provision of this chapter to the contrary notwithstanding, the board may by
negotiation, drawing of lot, or public auction, directly dispose of public
lands and related facilities set aside and designated for use as agricultural
parks, and any other lands and facilities under the jurisdiction of the
department pursuant to section 166-3 and notwithstanding chapter 171.  Except
as provided by subsection (c), dispositions may be by lease and shall be
subject to the requirements set forth in rules adopted by the board in
conformity with section 166-9, and subject also to the following limitations:



(1)  The property shall be disposed of for
agricultural or aquacultural purposes only;



(2)  The lessee shall derive the major portion of the
lessee's total annual income from the lessee's activities on the premises;
provided that this restriction shall not apply if failure to meet the
restriction results from mental or physical disability or the loss of a spouse,
or if the premises are fully utilized in the production of crops or products
for which the disposition was granted;



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



(4)  The board shall determine the specific uses for
which the disposition is intended; parcel the land into minimum size economic
units sufficient for the intended uses; make, or require the lessee to make
improvements as are required to achieve the intended uses; set the upset price
or lease rent based upon an appraised evaluation of the property value
adjustable as provided in rules adopted in accordance with chapter 91 to the
specified use of the lot; set the term of the lease, which shall be not less
than fifteen years nor more than fifty-five years, including any extension
granted for mortgage lending or guarantee purposes; and establish other terms
and conditions as it may deem necessary, including but not limited to
restrictions against alienation and provisions for withdrawal by the board;



(5)  No lease shall be made to any person who is in
arrears in the payment of taxes, rents, or other obligations owing the State or
any county; and



(6)  Any transferee, assignee, or sublessee of an
agricultural park lease shall first qualify as an applicant under this chapter. 
For the purpose of this paragraph, any transfer, assignment, sale, or other
disposition of any interest, excluding a security interest, of any legal entity
which holds an agricultural park lease shall be treated as a transfer of the
agricultural park lease and shall be subject to the approval of the board of
agriculture upon reasonable terms and conditions, not inconsistent with this
chapter or rules of the board, which the board may deem necessary.  No transfer
shall be approved by the board if the disposition of the stock, or assets or
other interest of the legal entity would result in the failure of the entity to
qualify for an agricultural park lease.



(b)  The violation of any provision contained
in this section shall be sufficient cause for the board, after due notice of
breach or default as provided in rules adopted by the board in conformance with
section 166-9, to cancel the lease and take possession of the land.



(c)  The board of agriculture may issue
easements, permits, and rights of entry covering agricultural park lands for
uses consistent with the purposes for which the lands were set aside or are
otherwise subject to the authority of the department pursuant to section 166-3.
[L 1986, c 222, pt of §1; am L 1988, c 22, §2; am L 1990, c 52, §3; am L 1993,
c 102, §3; am L 1994, c 218, §1]