(1) The state board of land commissioners shall be composed of five persons to be appointed by the governor, with the consent of the senate, one of whom shall be elected by the board as its president.

  (2) The governor shall endeavor to appoint members of the board who reside in different geographic regions of the state. The board shall be composed of one person with substantial experience in production agriculture, one person with substantial experience in public primary or secondary education, one person with substantial experience in local government and land use planning, one person with substantial experience in natural resource conservation, and one citizen at large.

  (3) The governor shall appoint a new board of land Commissioners on or before May 1, 1997. The term of each member shall be for four years; except that of the first board members appointed under this subsection (3), two members shall be appointed for terms that expire June 30, 1999, and three members shall be appointed for terms that expire June 30, 2001. The terms of office of the members of the board appointed prior to the effective date of this subsection (3) shall expire upon the confirmation of the first three members of the board appointed under this subsection (3). No member shall serve more than two consecutive terms. Members of the board shall be subject to removal, and vacancies of the board shall be filled, as provided in article IV, section 6 of this constitution.

  (4) The board shall, pursuant to section 13 of article XII of this constitution, hire a director with the consent of the governor; and, through the director, a staff, and may contract for office space, acquire equipment and supplies, and enter into contracts as necessary to accomplish its duties. Payments for goods, services, and personnel shall be made from the income from the trusts lands. The general assembly shall annually appropriate from the income from the trusts lands, sufficient moneys to enable the board to perform its duties and in that regard shall give deference to the board's assessment of its budgetary needs. The members of the board shall not, by virtue of their appointment, be employees of the state, they may be reimbursed for their necessary and reasonable expenses and may, in addition, receive such per diem as may be established by the general assembly, from the income from trust lands.

  (5) The individual members of the board shall have no personal liability for any action or failure to act as long as such action or failure to act does not involve willful for intentional malfeasance or gross negligence.

  (6) The board shall serve as the trustee for the lands granted to the state in public trust by the federal government, lands acquired in lieu thereof, and additional lands held by the board in public trust. It shall have the duty to manage, control, and dispose of such lands in accordance with the purposes for which said grants of land were made and section 10 of this article IX, and subject to such terms and conditions consistent therewith as may be prescribed by law.

  (7) The board shall have the authority to undertake nonsimultaneous exchanges of land, by directing that the proceeds from a particular sale or other disposition be deposited into a separate account to be established by the state treasurer with the interest thereon to accrue to such account, and withdrawing therefrom an equal or lesser amount to be used as the purchase price for the other land to be held and managed as provided in this article, provided that the purchase of lands to complete such an exchange shall be made within two years of the initial sale or disposition. Any proceeds, and the interest thereon, from a sale or other disposition which are not expended in completing the exchange shall be transferred by the state treasurer to the public school fund or such other trust fund maintained by the treasurer for the proceeds of the trust lands disposed of or sold. Moneys held in separate account shall not be used for the operating expenses of the board or for expenses incident to the disposition or acquisition of lands.