BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 29-3-41, Mississippi Code of 1972, is amended as follows:

29-3-41. After any parcels of sixteenth section lands have been classified as hereinabove provided, all land which has been classified as forest land and which is not now under lease shall hereafter not be leased. The lands classified as forest lands which may be under a lease that has a fixed date of expiration shall not be re-leased when said lease expires; nor shall the lessee be permitted to cut or remove any timber therefrom except according to the terms of his lease. Such lands shall be reserved and kept as forest lands. Provided further, that the mineral rights in all such lands may be leased for oil, gas, or mineral purposes, and the board of education may grant leases to the surface of said lands classified as forest, which are limited to hunting and fishing rights and activities in relation thereto, and which shall not extend for a period longer than fifteen (15) years. It shall be the duty of the board of education to lease said hunting and fishing rights at public contract after having advertised same for rent in a newspaper published in said county or, if no newspaper be published in said county, then in a newspaper having a general circulation therein, for two (2) successive weeks, the first being at least ten (10) days prior to said public contract. Said hunting and fishing rights shall be leased to the person offering the highest annual rental.

Provided that if the board of education receives an acceptable bid, the most recent holder of said hunting and fishing rights if it shall have made an offer, shall have the final right to extend its lease for the term advertised at the annual rental equal to said highest offer received by the board of education.

If no bid acceptable to the board of education is received after said advertisement, the board of education may, within ninety (90) days, lease same by private contract for an amount greater than the highest bid previously rejected.

If the board of education determines to lease the land by private contract, the most recent holder of said hunting and fishing rights, if it shall have made an offer, shall have the final right to extend its lease on the same terms and conditions as those contained in the private contract proposed to be accepted by the board of education.

The board of education may sell hunting and fishing permits to holders of valid resident hunting and fishing licenses. The board may allow purchasers of permits to hunt or fish or both only on those sixteenth section lands that are classified as forest lands and which are not under a lease to any other group or person for hunting or fishing purposes. The board of education shall establish the applications, fees and procedures for the sale of the permits. Permits may be sold only to residents of the State of Mississippi who have purchased a valid resident hunting or fishing license as provided in Sections 49-7-3, 49-7-5, 49-7-9, 49-7-13, 49-7-37 and 49-7-38.

SECTION 2. This act shall take effect and be in force from and after July 1, 1997.