MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Education
By: Senator(s) Younger
AN ACT TO AMEND SECTION 29-3-81, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS RELATED TO SIXTEENTH SECTION LAND LEASES CLASSIFIED AS AGRICULTURAL; TO REQUIRE THAT SUCH LEASES CONTAIN PROVISIONS RELATED TO BEST FARM MANAGEMENT PRACTICES AS ESTABLISHED BY THE SECRETARY OF STATE IN CONSULTATION WITH THE FEDERAL AGRICULTURE AGENCIES, MISSISSIPPI STATE UNIVERSITY AGRICULTURE EXTENSION SERVICE, OR OTHER AGRICULTURE ASSOCIATIONS; 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 a term not to exceed ten (10)
years. * * *
All leases of land classified as agricultural shall be for a term to expire on
December 31 and shall contain provisions related to best farm management
practices as established by the Secretary of State in consultation with Federal
Agriculture Agencies, Mississippi State University Agriculture Extension
Service, or other agriculture associations.
(2) * * * 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 publication shall be not more than four (4) months before the
expiration of the term of an existing lease of the land. The managing board
may also publish additional notices at school offices, in trade publications,
or at any other location, in any other media, or by any other means it finds
likely to result in competitive bids.
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. * * * The board of
education may require bidders to furnish bond or submit evidence of financial
ability.
An election by the holder of the existing lease not to request an extension of lease as described in subsection (3) 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.
Before the expiration of a current existing lease of land classified as agricultural land, except as otherwise provided in subsection (4) 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 one (1) occasion, for a term not to exceed ten (10) years and for a rental amount and lease terms related to best farm management practice as established by the Secretary of State in consultation with Federal Agriculture Agencies, Mississippi State University Agriculture Extension Service, or other agriculture association
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.
( * * *3) 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.
( * * *4) (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.
* * *
SECTION 2. This act shall take effect and be in force from and after July 1, 2024.