Section 141D-8 - Disposition(a) Notwithstanding any provision of this chapter and chapter 171 to the contrary, the department may dispose of the following by negotiation, drawing of lots, conversion, or public auction:(1) Public lands and related enterprises set aside and designated for use pursuant to this chapter; and(2) Other lands and enterprises subject to the authority of the department pursuant to section -9. Except as provided by subsection (d), the department shall dispose of public lands by lease.
(b) In all dispositions, the department shall be subject to the requirements set forth in rules adopted by the board pursuant to section -7 and subject to the following: (1) All land and enterprises shall be disposed of in a manner that supports or promotes agricultural activities or aquacultural activities;(2) Each lessee shall derive a major portion of the lessee's total annual income earned from the lessee's activities on the premises; provided that this restriction shall not apply if:(A) Failure to meet the restriction results from mental or physical disability of the lessee or the loss of the lessee's spouse; or(B) The premises are fully used to support or promote the agricultural activities or aquacultural activities 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:(A) Determine the specific uses for which the disposition is intended;(B) Parcel the land into minimum size economic units sufficient for the intended uses;(C) Make, or require the lessee to make, improvements that are necessary to achieve the intended uses;(D) Set the upset price or lease rent based upon an appraised evaluation of the property value, adjustable to the specified use of the lot;(E) Set the term of the lease, which shall be no less than fifteen years nor more than sixty-five years, including any extension granted for mortgage lending or guarantee purposes; and(F) Establish other terms and conditions that the board deems necessary, including restrictions against alienation and provisions for withdrawal by the board; and(5) Any transferee, assignee, or sublessee of an agricultural enterprise lease shall first qualify as an applicant under this chapter. For the purposes of this paragraph, any transfer, assignment, sale, or other disposition of any interest, excluding a security interest, by any legal entity that holds an agricultural enterprise lease shall be treated as a transfer of the agricultural enterprise lease and shall be subject to the approval of the board, reasonable terms and conditions consistent with this chapter, and rules adopted pursuant to this chapter. No transfer shall be approved by the board if the disposition of the stock or assets or other interest of the applicant would result in the failure of the person to qualify for an agricultural enterprise lease.(c) A violation of any provision in this section shall be cause for the board to cancel the lease and take possession of the land, or take other action as the board, in its sole discretion, deems appropriate; provided that the board shall provide notice to the lessee of the violation in accordance with rules adopted pursuant to section -7.(d) The board may issue easements, licenses, permits, and rights-of-entry for uses that are consistent with the purposes for which the lands were set aside or are otherwise subject to the authority of the department pursuant to section -9.Added by L 2022, c 221,§ 1, eff. 7/1/2022.