Mil. & Vet. Code, § 1023.2

(a) The general purpose of any use, other than an easement, of real property held by the department for a home by a person or entity, other than the home or a resident of the home, shall meet all of the following criteria, as determined by the secretary:

(1) Provide substantial and direct benefits to the home and its members.

(2) Be appropriate and compatible with the nature of the home.

(3) Compensate the department in an amount that approximates fair market value, taking into consideration the value of the benefit provided to the home’s members and the investment by the lessee in the property development of the home.

(4) When the use contemplated carries a reasonable risk of injury or loss to the state, the home, or the members of the home, that use is appropriately insured by the lessee to cover those risks and to insure home residents, the department, and the state against liability.

(b) Each use, other than an easement, of real property held by the department for a home by a person or entity, other than the home or a resident of the home, shall be governed by a written agreement between the department or the Director of General Services and the person or entity using the real property that establishes exactly how the person or entity meets the criteria in subdivision (a).

(c) For the purposes of this section, a benefit may include any function or activity that enhances the morale, welfare, and recreation of the home’s members.