School Trust Lands Policies & Procedures Manual

1 Page 1 Delbert HosemannSecretary of StateSchool Trust LandsPolicies & ProceduresManualPage 2 School Trust LANDSPOLICIES AND PROCEDURESP repared by the Public Lands DivisionOffice of the Secretary of State of MississippiPost Office Box 136 Jackson, Mississippi 39205125 South Congress StreetJackson, Mississippi 39201(601) contents of this Manual are based upon the provisions of the Mississippi Code of 1972, Annotated, in effect at the time of publication, which was August 2017. Subsequent changes to the applicable statues will be updated when 3 School Superintendents16th Section land ManagersSchool Board MembersSchool Board AttorneysDear Colleagues: I am pleased to present this new version of the 16th Section Public School Trust Lands Policies and Procedures Manual . It has been prepared for your use by the Public Lands Division of the Secretary of State s Office. You may also access the online Manual at The purpose of this Manual is to assist persons involved in the management of the 16th Section Public School Trust Lands in Mississippi.

2 My staff and I look forward to assisting you. If you have any comments or questions please contact us. Sincerely, C. Delbert Hosemann, Jr. Mississippi Secretary of StateDelbert HosemannSecretary of StateDelbert HosemannSecretary of StatePage 4 Table of ContentsI. General Management Responsibilities.

3 7 A. Managers of the Lands and Funds B. Duties of Secretary of State C. Managing Superintendent and Board DutiesII. Frequently Asked Questions ..13 III. Classification and Reclassification ..17 A. General Duties B. Available Classifications C. When to Classify and Reclassify land D. Procedure for Reclassifying land E. Assistance with Reclassification F. AppendixIV. Surface Leasing ..31 A. General Duties B. Procedure for Leasing the Surface of Trust Lands C. The Lease Document D. ImprovementsV. Mineral Leasing ..61 A. General Duties B. Procedure for Leasing Lands for Mineral Production C. The Lease Document D. Renewal of Mineral Leases E. Mineral Lessee s RightsVI. Managing the Lease ..73 A. Default B. Remedies at Default C. Death of Leasee D. Assignment and SubleasingPage 5 E. Rent Adjustment F. Subsequent Improvement G. CondemnationVII.

4 Surveys and Boundary Maintenance ..79 A. General Duties B. Establishing and Maintaining Boundaries C. Guidelines and Assistance for Establishing and Maintaining BoundariesVIII. Forestry Management ..83 A. General Duties B. Who Controls the Management of Forest Resources Located on Public School Trust Lands C. What Forest Management Practices May Be Done and By Whom D. Forest Escrow FundIX. land Sales ..94 A. General Duties B. Procedure for Selling Public School Trust land C. Deed Requirements for Sale of 16th Section Lands D. Deed Requirements for Purchase of Substitute Lands E. Post-Sale Requirements F. Policy RecommendationsX. Funds ..103 A. General Duties B. The Principal Fund C. The Expendable Fund ( Interest Fund ) D. Forestry Escrow Fund E. Policy RecommendationsXI. Shared A. General Duties B. What Revenues Are To Be Shared C. What Lands Are Shared D. Duties of All Sharing Boards E.

5 Specific Duties of Managing Boards Page 6 XII. Property Taxes ..119 A. General Duties B. Applicable Taxes C. Failure to Pay TaxesXIII. Appraisals ..125 A. General Duties B. Law C. Policy Recommendations Page Management Responsibilities A. Managers of the Lands and Funds 1. The Secretary of State 2. The Managing Board of Education a. One district in the township: the School district s board of education b. Two or more districts in the township: the board whose district is the largest in the township c. County line divides the township: the board whose district includes the land d. County line divides the land : the board whose district includes the land ; cooperation 3.

6 Superintendent of Education 4. Other Management Review and Assistance a. The Mississippi Forestry Commission: Management of Forest Resources b. The County Board of Supervisors: review of rent amounts on private contract leases c. Private Registered Foresters and Contractors: reforestation and review d. Appraiser: determination of fair market value e. Attorney: collection of delinquent rents B. Duties of Secretary of State 1. General Oversight 2. Review of land Uses, Legal Instruments, and Funds 3. Obtain and Maintain Records Pertaining to Public School Trust Lands 4. Report to Legislature Every Two Years C. Managing Superintendent and Board Duties 1. land Generally Managed as Trust land 2. Adequate Compensation for All Uses 3. Superintendent of Managing District to Administer a. Keep docket of leases b. Collect rents and investment proceeds c.

7 Cancel delinquent leases d. Collections of past rents and penalties e. Report to Department of Education f. File all leases and information with the Secretary of State 4. Managing board to keep funds, direct investment, share revenues as necessary 5. Managing board to incur and be reimbursed for expenses Page 8A. Managers of the Lands and Funds1. The Secretary of State The board of education under the general supervision of the [Secretary of State], shall have control and jurisdiction of said School Trust Lands and of all funds arising from any disposition thereof heretofore or hereafter made. Miss. Code Ann. Section 29-3-1(1). 2. The Managing Board of Educationa. One district in the township: the School district s board of education Board of education shall mean that School board of the School district in whose present jurisdiction (i) is situated a sixteenth section of land , or (ii) was originally situated a sixteenth section of land for which land has been granted in lieu thereof.

8 Miss. Code Ann. Section Two or more districts in the township: the board whose district is the largest in the township Provided, however, that in the event a sixteenth section is situated within two (2) or more School districts, the term board of education shall mean that School board whose School district embraces the greatest land area within the township in which said sixteenth section is located. Miss. Code Ann. Section County line divides the township: the board whose district includes the land Where a township is divided so that parts are situated in different counties, the county in which the six-teenth section or Lands in lieu thereof may be situated shall have jurisdiction thereof.. Miss. Code Ann. Section County line divides the land : the board whose district includes the land ; cooperation [I]f the section or land in lieu thereof be in several counties, each county has jurisdiction of the part lying in it, or the counties may co-operate in the management thereof.

9 Miss. Code Ann. Section 29-3-127. 3. Superintendent of Education It shall be the duty of the superintendent of education to supervise generally the administration of all sixteenth section Lands within his jurisdiction. Miss. Code Ann. Section 29-3-57. Superintendent of education shall mean that superintendent of schools of a School district whose board of education has control and jurisdiction over any sixteenth section Lands or Lands granted in lieu thereof. Miss. Code Ann. Section Other Management Review and Assistancea. The Mississippi Forestry Commission: Management of Forest Resources The State Forestry Commission shall have the sole authority and control in prescribing the forestry management practices and scheduling of all cutting and harvesting of timber or other forest products when such timber stands or other forest products are determined by the State Forestry Commission to be economically ready for cutting and harvesting.

10 Miss. Code Ann. Section 29-3-45(1)(b).b. The County Board of Supervisors: review of rent amounts on private contract leases Within thirty (30) days of the receipt of the lease [submitted by the board of education], the board of supervisors shall accept or reject the proposed rental amount. Miss. Code Ann. Section 29-3-45(1)(c).Page 9c. Private Registered Foresters and Contractors: reforestation and review ..any School board may contract with private persons or businesses for the reforestation of sixteenth section Miss. Code Ann. Section 29-3-45(1)(a)..any School board .. may contract with a registered forester to be paid from the 16th Section Interest Fund for a review of any forestry management decision or forestry practice including the sale of timber for sixteenth section forest land provided that any implementation of a forestry management decision or forestry practice to be taken as a result of the review described in this subsection shall be subject to the approval of both the commission and the Secretary of State.