Bill Text: MS SB2410 | 2024 | Regular Session | Introduced
Bill Title: 16th Section Lands, prohibit rent escalation from exceeding fair market value of land.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-03-05 - Died In Committee [SB2410 Detail]
Download: Mississippi-2024-SB2410-Introduced.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Education
By: Senator(s) DeLano
Senate Bill 2410
AN ACT TO AMEND SECTION 29-3-65, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A BOARD OF EDUCATION MAY USE RENT ESCALATION CLAUSES OR OTHER SUCH DEVICES IN SIXTEENTH SECTION LAND CONTRACTS TO ADJUST RENTAL AMOUNTS DURING THE LEASE TERM, PROVIDED THAT SUCH ADJUSTMENTS WILL NOT EXCEED THE FAIR MARKET RENTAL VALUE OF THE LANDS, EXCLUSIVE OF IMPROVEMENTS THEREON, AS OF THE RENTAL ADJUSTMENT DATES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 29-3-65, Mississippi Code of 1972, is amended as follows:
29-3-65. One (1) year prior to the date, when any such lands, not subject to competitive bid procedures, shall become available for lease, the board of education shall appoint a competent appraiser to appraise the land and report to the board his recommendation for the fair market rental amount. The board shall then determine whether the same be a reasonable amount, and shall grant the lease pursuant to Section 29-3-63. Provided that in the event any such land becomes available for lease prior to July 1, 1979, an appraisal shall be required prior to the granting of said lease.
The board of education may use rent escalation clauses or other such devices to adjust rental amounts during the lease term, provided that such adjustments will not exceed the fair market rental value of the lands, exclusive of improvements thereon, as of the rental adjustment dates. Owners of leaseholds under a lease granted prior to July 1, 1978, which have improvements constructed thereon, shall not be charged for such improvements in successive lease periods unless the lease contract clearly specifies otherwise. The cost of the appraisal under this section shall be paid from any available sixteenth section school funds or other school funds of the district.
The appraisal pertaining to renewal oil, gas and mineral leases executed pursuant to Section 29-3-63 may be made either before or after the expiration of the original lease and shall appraise the fair market value for the bonus to be paid for a renewal lease containing the terms and conditions agreed upon by the holder of the lease and the board of education.
SECTION 2. This act shall take effect and be in force from and after July 1, 2024.
