B. The Arizona state parks board shall designate a dude ranch for inclusion in the Arizona dude ranch heritage trail program if all of the following apply:

1. 1. The owner of the dude ranch applies to the Arizona state parks board in a manner determined by the Arizona state parks board.
2. 2. The dude ranch has been in business for at least twenty-five years.

3. 3. The dude ranch consists of at least one thousand contiguous acres that are any of the following:

   1. (a) Private property adjacent to the headquarters.
   2. (b) Leased property adjacent to the headquarters. For the purposes of this subdivision, the lease agreement may be for private or public real property and must be in writing and include riding rights.
   3. (c) Public land that is subject to a riding permit.
4. 4. The dude ranch provides recreational activities that include horseback riding, hiking, biking or a working cattle ranch experience for guests.
5. 5. The dude ranch has an organized and supervised horse program on the property with a horse herd that consists of a number of horses that is equal to or greater than the total number of guest accommodations during the operating season in which guests are present.
6. 6. The dude ranch uses at least one permanent structure that has running water, sewage disposal and a kitchen.
7. 7. The dude ranch provides guests with three meals each day as part of the dude ranch's primary package, commonly referred to as the "American plan".
8. 8. The dude ranch includes the word "ranch" or "rancho" in the ranch's name.