MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Agriculture
By: Representatives Pigott, Carpenter, Corley, Evans (45th), Gipson, Hale, Horne, Johnson (87th), Morgan, Scoggin, Staples, Steverson, Touchstone, Tullos, Dixon, Walker
AN ACT TO AMEND SECTION 29-3-81, MISSISSIPPI CODE OF 1972, TO REVISE THE MANNER BY WHICH AGRICULTURAL LEASES ON SIXTEENTH SECTION LANDS AND LANDS GRANTED IN LIEU OF SIXTEENTH SECTION LANDS ARE EXTENDED BY PROVIDING THE EXISTING LEASEHOLDER THE FINAL RIGHT TO EXTEND THE LEASE PROVIDED THAT IT MATCHES THE HIGHEST BID RECEIVED BY THE SCHOOL BOARD, RECEIVED AT PUBLIC AUCTION OR ENTERED IN BY PRIVATE CONTRACT ON THE SAME TERMS AND CONDITIONS OF SUCH CONTRACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 29-3-81, Mississippi Code of 1972, is amended as follows:
29-3-81. (1) Sixteenth
section lands, or any lands granted in lieu of sixteenth section lands,
classified as agricultural may be leased for the cultivation of rice, or
pasturage, for a term not to exceed ten (10) years. All other sixteenth
section or lieu lands classified as agricultural may be leased for a term not
exceeding five (5) years. All leases of land classified as agricultural shall
be for a term to expire on December 31. Except in those cases when the holder
of an existing lease on agricultural land elects to re-lease such land, as
authorized under this subsection, it shall be the duty of the board of
education to lease the sixteenth section or lieu lands at public contract after
having advertised such lands for rent in a newspaper published in the county
or, if no newspaper is published in the county, then in a newspaper having a
general circulation therein, for two (2) successive weeks, the first being at
least ten (10) days before the public contract. The lease form and the terms
so prescribed shall be on file and available for inspection in the office of
the superintendent from and after the public notice by advertisement and until
finally accepted by the board. However, before the expiration of an existing
lease of land classified as agricultural land, except as otherwise provided in
subsection (2) for lands intended to be reclassified, the board of education,
in its discretion and subject to the prior approval of the Secretary of State,
may authorize the holder of the existing lease to re-lease the land, on no more
than * * *
two (2) occasions, for a term not to exceed five (5) years and for a
rental amount that is no less than one hundred twenty percent (120%) of the
total rental value of the existing lease. If the holder of the existing lease
elects not to re-lease the land, the board of education shall publish an
advertisement of agricultural land for rent which publication shall be not more
than four (4) months before the expiration of the term of an existing lease of
the land. An election by the holder of the existing lease not to re-lease the
land shall not preclude his participation in the bidding process established
under this section. Subject to the classification of the land, the board of
education shall enter into a new lease on agricultural land before the
expiration of an existing lease on the same land, and the new lease shall take
effect on the day immediately following the day on which the existing lease
expires. The board of education may require bidders to furnish bond or submit
evidence of financial ability.
Bids received by the board of education in response to the advertisement shall be opened at a regular or special meeting of the board. The board of education, at its option, may reject all bids or accept the highest and best bid received in response to the advertisement, or the board of education may hold an auction among those who submitted bids in response to the advertisement. If the board of education elects to hold an auction, no bidder shall be granted any preference. The opening bid at the auction shall be highest bid received in response to the advertisement.
(2) If, during the final year of an existing lease, the board of education notifies the holder of the existing lease that the board of education intends to reclassify the land under Section 29-3-39, the holder of the existing lease may re-lease the land for a term of five (5) years and for a rental amount that is equal to one hundred twenty percent (120%) of the total rental value of the then existing lease. Thereafter, the board of education shall have the option to proceed with the reclassification of the land or may re-lease the land for one (1) additional term of five (5) years after advertising for bids or holding an auction in the same manner as provided in subsection (1) of this section, and the new classification will be implemented upon the expiration of the then existing lease. This subsection does not apply if the board of education intends to reclassify the land under the "commercial" or "industrial" land classification based on a valid business proposal presented to and approved by the board of education.
(3) (a) If the board of education receives an acceptable bid in response to the advertisement and elects not to hold an auction among those submitting bids, then the holder of the existing lease may submit a second bid in an amount not less than one hundred five percent (105%) of the highest acceptable bid received if the holder of the existing lease: (i) submitted a bid in response to the advertisement; and (ii) constructed or made improvements on the leasehold premises after receiving approval of the board of education during the term of the existing lease. For purposes of this subsection, the term "improvements" shall not include any work or items that are done customarily on an annual basis in the preparing, planting, growing, cultivating or harvesting of crops or other farm products.
(b) If the holder of the existing lease elects to submit a second bid, the board of education shall hold an auction among those who submitted bids in response to the advertisement. The opening bid at the auction shall be the second bid of the holder of the existing lease. However, no leaseholder may submit a second bid if: (i) any rent, taxes or other payment required under his lease are past due; or (ii) he is otherwise in default of any term or provision of the lease and such default has not been corrected or cured to the satisfaction of the board of education after more than thirty (30) days' notice to the leaseholder of the default.
(c) If an auction is held, the auction may be conducted at the meeting at which bids are opened or at a subsequent regular or special meeting. The board shall announce the time and place of the auction at the meeting at which bids are opened, and no further notice of the auction is required.
(d) If no bid acceptable to the board of education is received after the advertisement or at auction, the board of education may lease, within ninety (90) days, the lands by private contract for an amount greater than the highest bid previously rejected in order to acquire a fair rental value for the lands. If no bids are received in response to the advertisement, the board of education may negotiate a private contract for a fair rental value, and the term of such contract shall expire on December 31 of the same calendar year in which the contract is made. The board of education may take the notes for the rent and attend to their collection. The board has the right and remedies for the security and collection of such rents given by law to the agricultural landlords.
(e) If an existing lease is terminated before the expiration of the term originally set therein, upon finding that immediate action is necessary to prevent damage or loss to growing crops or to prevent loss of opportunity to lease the land for the current growing season, the board of education may negotiate a private contract for a fair rental value, and the term of such lease shall expire on December 31 of the same calendar year in which the contract is made.
(4) Any holder of a lease on agricultural land that: (a) was granted before July 1, 1997; and (b) has an expiration date on or after April 1 but before December 31 during the final year of the lease term, may extend the term of such lease to December 31 next following the expiration date originally provided for in the lease. If such lease is extended, the rent for the period from the original expiration date in the lease to December 31 next following the original expiration date shall be one hundred five percent (105%) of the annual rent provided in the existing lease prorated over the period of the lease extension. At the expiration of the extended lease term or at the expiration of the original lease term if the lease holder does not extend such lease, the land shall be offered for lease as provided in subsections (1) and (2) of this section.
SECTION 2. This act shall take effect and be in force from and after July 1, 2018.