(1) The Board of Educational Lands and Funds shall consist of five members to be appointed by the Governor with the consent of a majority of the members elected to the Legislature. One member shall be appointed from each of the congressional districts as the districts were constituted on January 1, 1961, and a fifth member shall be appointed from the state at large. One member of the board shall be competent in the field of investments. The initial members shall be appointed to take office on October 1, 1955, and shall hold office for the following periods of time: The member from the first congressional district for one year; the member from the second congressional district for two years; the member from the third congressional district for three years; the member from the fourth congressional district for four years; and the member from the state at large for five years. As the terms of the members expire, the Governor shall appoint or reappoint a member of the board for a term of five years, except members appointed to fill vacancies whose tenures shall be the unexpired terms for which they are appointed. If the Legislature is not in session when such members, or some of them, are appointed by the Governor, such members shall take office and act as recess appointees until the Legislature next thereafter convenes. The compensation of the members shall be fifty dollars per day for each day's time actually engaged in the performance of the duties of their office. Each member shall be reimbursed for expenses incurred while upon business of the board as provided in sections 81-1174 to 81-1177. The board shall cause all school, university, agricultural college, and state college lands, owned by or the title to which may hereafter vest in the state, to be registered, leased, and sold as provided in sections 72-201 to 72-251 and shall have the general management and control of such lands and make necessary rules not provided by law. The funds arising from these lands shall be disposed of in the manner provided by the Constitution of Nebraska, sections 72-201 to 72-251, and other laws of Nebraska not inconsistent herewith.

(2) No person shall be eligible to membership on the board who is actively engaged in the teaching profession, who holds or has any financial interest in a school land lease, who is a holder of or a candidate for any state office or a member of any state board or commission, or who has not resided in this state for at least three years.

(3) The board shall elect one of its members as chairperson of the Board of Educational Lands and Funds. In the absence of the chairperson, any member of the board may, upon motion duly carried, act in his or her behalf as such chairperson. It shall keep a record of all proceedings and orders made by it. No order shall be made except upon the concurrence of at least three members of the board. It shall make all orders pertaining to the handling of all lands and funds set apart for educational purposes.

(4) The board shall maintain an office in Lincoln and shall meet in its office not less than once each month.

(5) The board may appoint a secretary for the board. The compensation of the secretary shall be payable monthly, as fixed by the board.

Source:Laws 1899, c. 69, § 1, p. 300; R.S.1913, § 5845; C.S.1922, § 5181; C.S.1929, § 72-201; Laws 1935, c. 163, § 1, p. 594; Laws 1937, c. 162, § 1, p. 628; C.S.Supp.,1941, § 72-201; R.S.1943, § 72-201; Laws 1945, c. 175, § 1, p. 559; Laws 1951, c. 338, § 3, p. 117; Laws 1953, c. 252, § 1, p. 857; Laws 1955, c. 276, § 1, p. 874; Laws 1955, c. 277, § 1, p. 877; Laws 1961, c. 282, § 5, p. 822; Laws 1965, c. 434, § 1, p. 1383; Laws 1969, c. 589, § 1, p. 2438; Laws 1981, LB 204, § 141; Laws 1999, LB 779, § 12; Laws 2011, LB332, § 1; Laws 2014, LB967, § 3; Laws 2020, LB381, § 77.

Cross References

Constitutional provisions:
Board of Educational Lands and Funds, duties, membership, see Article VII, section 6, Constitution of Nebraska.
Fees, see sections 25-1280 and 33-104.
Other provisions relating to the board, see Chapter 84, article 4.
State-owned geothermal resources, authority to lease, see section 66-1104.

Annotations

Amendments of section 1, Article IV of the Constitution did not expressly or by implication repeal existing statutes imposing duties and obligations on the Commissioner of Public Lands and Buildings. Swanson v. State, 132 Neb. 82, 271 N.W. 264 (1937).
Statute fixes the times at which board should meet and transact their business. State v. Bass, 131 Neb. 592, 269 N.W. 68 (1936).
The provision of this section as to rule making refers only to regulation of the management and control of school lands, and does not confer power upon the Board of Commissioners to convey such lands or any rights therein in excess of that provided by statute. Fawn Lake Ranch Co. v. Cumbow, 102 Neb. 288, 167 N.W. 75 (1918).
The Board of Educational Lands and Funds acts by a majority of its members who have equal authority, and, hence, employment of an attorney to represent the board must be by the board itself and not by one of its members. Follmer v. State, 94 Neb. 217, 142 N.W. 908 (1913), Am. Ann. Cas. 1914D 151 (1913).

(1) The Board of Educational Lands and Funds shall prepare a plan for the sale of educational lands over which the board has general management and control on July 19, 1996. The plan shall be submitted to the Education Committee of the Legislature on or before December 1, 1996. The plan shall provide for the sale of enough of the total of the educational lands by January 1, 2008, to result in one-fourth of the value of the school trust permanent portfolio being invested by the board in real property located within the State of Nebraska and the remaining three-fourths of the value of the school trust permanent portfolio being invested by the state investment officer. The plan shall be implemented beginning on July 1, 1997. In no case shall the plan or any part of it be executed if such execution violates the fiduciary duties of the board.

(3) The state investment officer shall prepare a plan for investment of the funds derived from the sale of educational lands under the board's plan developed under this section. The state investment officer's plan shall be submitted to the Education Committee of the Legislature on or before December 1, 1996. The plan shall include estimated rates of return for the invested funds.

(4) For purposes of this section, value of the school trust permanent portfolio means the total fair market value of the educational lands and of all stocks, bonds, and other assets comprising the permanent school fund.

The Board of Educational Lands and Funds shall have authority to establish and maintain a branch office in the state as the board shall designate.

The Board of Educational Lands and Funds shall notify the state investment officer of the funds derived from the sale of school lands. Any such funds and the interest therefrom shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act. The state investment officer shall manage the funds as follows: (1) When necessary to pay a premium for bonds for such funds, the amount of the premium shall be amortized over the term of the bonds from the interest received on such bonds; and (2) when bonds for such funds are purchased at a discount, the amount of the discount shall be used to purchase additional bonds.

Source:Laws 1899, c. 69, § 2, p. 301; Laws 1909, c. 129, § 1, p. 473; R.S.1913, § 5846; Laws 1917, c. 113, § 1, p. 285; C.S.1922, § 5182; C.S.1929, § 72-202; Laws 1931, c. 119, § 1, p. 349; Laws 1933, c. 141, § 1, p. 551; Laws 1937, c. 159, § 1, p. 622; C.S.Supp.,1941, § 72-202; R.S.1943, § 72-202; Laws 1951, c. 235, § 1, p. 840; Laws 1959, c. 263, § 11, p. 943; Laws 1969, c. 584, § 76, p. 2392; Laws 1971, LB 52, § 1; Laws 1983, LB 238, § 1; Laws 1995, LB 7, § 83; Laws 1999, LB 779, § 13.

Cross References

For other investment provisions, see sections 77-2204 and 77-2205.
Nebraska Capital Expansion Act, see section 72-1269.
Nebraska State Funds Investment Act, see section 72-1260.
Permanent Endowment Fund, see section 85-123.
State colleges, endowment fund, see section 85-317.

The Board of Educational Lands and Funds shall keep in its office a full and complete abstract of all educational lands of the State of Nebraska, and such other records as are necessary to show the condition of each tract of land from the time title was acquired by the state.

The Board of Educational Lands and Funds shall cause school land to be classified for rental purposes (1) at least once each five years, (2) each time that the land is leased or that an assignment of a lease is made, and (3) when the board deems it to be in the best interest of the state. The leasing of the land shall be regulated by sections 72-232 to 72-239. When a lease is offered for sale, the new rental shall be made public. When the board has ordered the reclassification of any of the school lands in any county, it shall prescribe the method and promulgate rules governing the classification of educational lands. It shall have a classification of all the educational lands in the county prepared by a competent person, who shall make a detailed field examination of each forty-acre tract of educational lands for the purpose of obtaining information as to the type and rating of the soil, its adaptability, the topographical character of the land, and the location and number of acres of each type. His or her report of such field examination shall be prepared in the form of a detailed map with complete explanations and shall be filed with the board. The board may employ private appraisal firms to aid it in determining the value of educational lands.

Annotations

Administrative determination of value of school lands is for the purpose of securing a basis for fixing the annual rent. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).
This section must be construed to require the state's rights and interest in the land to be appraised, which does not include improvements by settlers upon indemnity school lands which by the act of 1875 belonged to such settlers. State v. McCright, 76 Neb. 732, 108 N.W. 138 (1906), rehearing denied 76 Neb. 738, 112 N.W. 315 (1907).

All school land shall be subject to lease at fair market rental as determined by the Board of Educational Lands and Funds. When the board deems it expedient to raise or lower the rental and the appraised rental valuation of school lands, the board shall adopt rental schedules according to classification and schedules of valuations for the counties involved. In arriving at such rental schedules, the board shall consider the rental of other lands similarly situated and any other relevant factors bearing upon the rental of such school lands. The fair market rental as determined by the board shall then be capitalized at an annual rate of four percent to compute the appraised rental valuation.

Annotations

Administrative determination of value for rent purposes does not fix value which state must receive for land taken under eminent domain proceedings. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

After the adoption of new rental schedules according to classification and schedules of valuations, as provided by section 72-205, such schedules together with a tabulation of the valuation and the amount of semiannual rental of each lease shall be filed in the office of the county treasurer of such county not less than ninety days prior to the effective date of the new rentals. Notice of such filing shall be given by one publication in a newspaper of general circulation published within the county or, if more than one newspaper of general circulation is published in the county, then in two of such newspapers. If no newspaper is published in the county, it shall be so published in a newspaper of general circulation therein. The board shall further advise each lessee by mailing to his or her last address of record a letter or postal card notifying him or her of the amount of his or her semiannual rental.

Such new rental schedules according to classification and schedules of valuations shall become effective upon the first semiannual rental due date, which is ninety days or more from the date of the filing of the schedules in the office of the county treasurer, unless within forty-five days from the date of the publication of notice a petition signed (1) by at least twenty-five percent of the lessees in counties having less than one hundred leaseholders or (2) twenty-five of the lessees in counties having one hundred or more leaseholders within the county, requesting a hearing is filed in the office of the Board of Educational Lands and Funds.

Upon receipt of a petition bearing the requisite number of signatures as required by section 72-205.02, the Board of Educational Lands and Funds shall appoint an examiner who shall hold a meeting in the county seat of the county where such school lands are located to take testimony and to receive evidence as to the rental of all school lands, according to classification, in such county. Such evidence shall cover the rental of other lands similarly situated and any other relevant factors bearing upon the rental of such school lands. Notice of the time and place of such hearing shall be given by publication in a legal newspaper, published in the county where such school lands are situated, once each week for two consecutive weeks beginning at least twenty days prior to the date of the public hearing. In case no legal newspaper is published in the county, then the notice shall be published in a legal newspaper of general circulation in the county. The examiner conducting such hearing shall have the power to administer oaths.

A complete record shall be made of all testimony taken and evidence received at such hearing, which record shall be filed in the office of the Board of Educational Lands and Funds. The examiner conducting such hearing shall make, in writing, complete findings and recommendations to the board as to the value of school lands according to classification. If the board determines that a change in the rental is justified it may either raise or lower its rental schedules according to classifications and schedules of valuations previously adopted based upon the evidence produced at such hearing as shown by the record, the effective date to be the time originally fixed.

When the Board of Educational Lands and Funds becomes satisfied that full payment has been made on any tract of land sold by the state, the Governor shall issue a deed to the purchaser or his assigns, and all deeds issued by him shall be countersigned by the Secretary of State and under the Great Seal of the state, and shall be attested by the secretary of the board and a record kept in his office. All deeds so issued shall be subject to record, and shall be received in evidence without acknowledgment, the same as deeds that have been acknowledged.

No lands now owned or hereafter acquired by the state for educational purposes shall be sold except at public auction.

Source:Laws 1921, c. 80, § 2, p. 290; C.S.1922, § 5191; Laws 1923, c. 61, § 1, p. 185; Laws 1925, c. 135, § 1, p. 354; Laws 1929, c. 188, § 1, p. 652; C.S.1929, § 72-211; Laws 1931, c. 118, § 1, p. 345; Laws 1935, c. 164, § 1, p. 611; Laws 1941, c. 145, § 1, p. 576; C.S.Supp.,1941, § 72-211; Laws 1943, c. 160, § 1, p. 573; R.S.1943, § 72-212.

Annotations

Under former statute, state board had no authority to dispose of mineral rights in school lands. Briggs v. Neville, 103 Neb. 1, 170 N.W. 188 (1918).
The power of the Board of Commissioners to lease, sell, or dispose of school lands exists only insofar as it is directed or permitted by the Legislature. Fawn Lake Ranch Co. v. Cumbow, 102 Neb. 288, 167 N.W. 75 (1918).

Educational lands belonging to the state may be acquired through the exercise of eminent domain proceedings for the special purposes mentioned in sections 72-214 to 72-226.

Annotations

Taking of educational land by eminent domain for county fair purposes is authorized. State v. Cheyenne County, 157 Neb. 533, 60 N.W.2d 593 (1953).
School lands cannot be taken from state by judicial process unless full value is paid to the state. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

Any school district, in which there may be any educational lands, may acquire for school purposes any portion thereof, not exceeding forty acres.

Source:Laws 1899, c. 69, § 11, p. 304; Laws 1905, c. 144, § 1, p. 582; Laws 1907, c. 134, § 1, p. 437; Laws 1913, c. 40, § 1, p. 135; R.S.1913, § 5855; Laws 1915, c. 103, § 1, p. 247; Laws 1921, c. 80, § 2, p. 290; C.S.1922, § 5191; Laws 1923, c. 61, § 1, p. 185; Laws 1925, c. 135, § 1, p. 354; Laws 1929, c. 188, § 1, p. 652; C.S.1929, § 72-211; Laws 1931, c. 118, § 1, p. 345; Laws 1935, c. 164, § 1, p. 611; Laws 1941, c. 145, § 1, p. 576; C.S.Supp.,1941, § 72-211; Laws 1943, c. 160, § 1, p. 573; R.S.1943, § 72-214.

Any city or village may acquire such educational lands not exceeding forty acres for solid waste disposal areas, sewage disposal purposes, necessary right-of-way for electric transmission lines, or for any other purpose, except park and recreational purposes, for which a city or village may condemn private lands.

The United States of America, or any county, city or village of the State of Nebraska may acquire such educational lands necessary for public use for the development of radio monitor stations, aviation fields, and fields for aerial traffic.

The United States of America may purchase any educational lands located within the boundaries of any defense project.

Annotations

Legislature provided for a public offering, preceded by public notice, of all educational lands subject to lease. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

The United States of America may acquire such educational lands, or portions thereof, in subdivisions of not less than forty acres, located within the boundaries of the projects now authorized by the United States of America pursuant to Public Law 848, 76th Congress, entitled An Act Authorizing the Construction of Water Conservation and Utilization Projects in the Great Plains and Arid and Semiarid Areas of the United States, approved August 11, 1939, and all acts supplementary thereto, amendatory thereof, or appropriating funds for the purposes thereof.

The county board of any county, in which there are such educational lands, may acquire for public purposes any portion thereof, not exceeding forty acres.

Source:Laws 1915, c. 103, § 1, p. 247; Laws 1921, c. 80, § 2, p. 290; C.S.1922, § 5191; Laws 1923, c. 61, § 1, p. 185; Laws 1925, c. 135, § 1, p. 254; Laws 1929, c. 188, § 1, p. 652; C.S.1929, § 72-211; Laws 1931, c. 118, § 1, p. 345; Laws 1935, c. 164, § 1, p. 611; Laws 1941, c. 145, § 1, p. 576; C.S.Supp.,1941, § 72-211; Laws 1943, c. 160, § 1, p. 574; R.S.1943, § 72-219.

Annotations

County may acquire educational land for county fair grounds. State v. Cheyenne County, 157 Neb. 533, 60 N.W.2d 593 (1953).

Any city, village, cemetery association or corporation for the control of cemeteries, may acquire, for cemetery and burial purposes, any of the educational land, not exceeding in the aggregate forty acres, and may purchase additional adjoining tracts not exceeding ten acres each, if and when it becomes necessary to enlarge such cemetery.

The Department of Transportation and the county board of any county may acquire land necessary to establish a public highway over or across any educational lands.

Source:Laws 1907, c. 134, § 1, p. 437; Laws 1913, c. 40, § 1, p. 135; R.S.1913, § 5855; Laws 1915, c. 103, § 1, p. 247; Laws 1921, c. 80, § 2, p. 290; C.S.1922, § 5191; Laws 1923, c. 61, § 1, p. 185; Laws 1925, c. 135, § 1, p. 354; Laws 1929, c. 188, § 1, p. 652; C.S.1929, § 72-211; Laws 1931, c. 118, § 1, p. 345; Laws 1935, c. 164, § 1, p. 611; Laws 1941, c. 145, § 1, p. 576; C.S.Supp.,1941, § 72-211; Laws 1943, c. 160, § 1, p. 574; R.S.1943, § 72-221; Laws 2017, LB339, § 247.

All established public roads that have been established for a period of ten years or more on the section line along any side or part of the side of a section owned by the Board of Educational Lands and Funds, and on any part of a section that has an established meandering road not on the section line and under the jurisdiction of the Board of Educational Lands and Funds, shall be dedicated to the county for public use in the case of county roads, or to the State of Nebraska, Department of Transportation, for public use. The public road right-of-way so dedicated shall be no less than thirty-three feet from the section line, nor less than sixty-six feet through that part of the section where the established road meanders through the described section. Upon receipt of payment from any county or the department of the fair and reasonable market value of the right-of-way at the date the road was established, the Board of Educational Lands and Funds shall convey to the county or the department title to such road right-of-way. The instruments of conveyance shall be recorded in the office of the register of deeds.

Any irrigation district, rural water district, public power district or public power and irrigation district, or natural resources district may acquire from the state any educational land, portion thereof, or interest therein for the purpose for which such districts are authorized by law to condemn private lands in this state. In addition, a natural resources district may acquire an easement or right-of-way for the purpose of constructing, replacing, operating, and maintaining structures which are a part of the program of work of the district.

Source:Laws 1923, c. 61, § 1, p. 185; Laws 1925, c. 135, § 1, p. 354; Laws 1929, c. 188, § 1, p. 652; C.S.1929, § 72-211; Laws 1931, c. 118, § 1, p. 345; Laws 1935, c. 164, § 1, p. 611; Laws 1941, c. 145, § 1, p. 576; C.S.Supp.,1941, § 72-211; Laws 1943, c. 160, § 1, p. 574; R.S.1943, § 72-222; Laws 1963, Spec. Sess., c. 17, § 1, p. 148; Laws 1965, c. 436, § 1, p. 1388; Laws 1971, LB 513, § 1; Laws 1977, LB 510, § 7.

Any manufacturing company, pipeline company, or telephone or telegraph company, incorporated or qualified to do business in this state, may acquire an easement or right-of-way for the purpose of constructing, replacing, and maintaining pipelines, power pumps, telephone and telegraph lines and appurtenances thereto, under and across any of the school lands, the title of which is vested in the State of Nebraska, as trustee for the common schools.

Any public body enumerated in section 72-222 may acquire an easement from the state on any educational land when such easement is for the purpose for which such public body is authorized by law to condemn private lands in this state. It shall not be necessary for the acquiring public body to follow the procedure established in section 72-224.03 to obtain such easement. The public body may obtain such easement by the filing of an application with the Board of Educational Lands and Funds. Such application shall describe the nature and purpose of the easement, shall contain a legal description of the easement, and shall name the public body seeking the easement. Upon receiving the application for easement the Board of Educational Lands and Funds shall either (1) deny the application or (2) grant the easement and place a value on the easement to be paid by the applicant. When placing a value on the easement the Board of Educational Lands and Funds shall take into consideration the board's responsibility to manage the educational lands in a manner consistent with that of a trustee acting in a fiduciary capacity. The public body applying for the easement shall then either (a) accept the Board of Educational Lands and Funds' value or (b) proceed according to section 72-224.03. Upon the granting of such easement, it shall be the duty of the secretary of the Board of Educational Lands and Funds to transmit a certified copy of the easement to the grantee for filing in the office of the register of deeds in the county or counties where the easement is located.

The condemnation proceedings provided in sections 72-213 to 72-222 shall not operate to deprive the State of Nebraska of any mineral rights in the lands taken for the special purposes authorized by said sections, and, except as to land acquired by the United States of America, when any such land shall cease to be used for the special purpose for which it was acquired, it shall revert to the State of Nebraska as educational land. On lands acquired in this manner by the Game and Parks Commission all mineral income shall accrue to the appropriate state school funds; Provided, that all mineral extraction and exploration shall be conducted in a manner to be approved by both the Board of Educational Lands and Funds and the Game and Parks Commission.

Annotations

Possibility of reverter to state was so remote as not to have any value in eminent domain proceedings. State v. Cheyenne County, 157 Neb. 533, 60 N.W.2d 593 (1953).
A condemner cannot acquire any mineral rights in land taken under eminent domain, and the value of such rights is to be excluded in determining compensation to be paid. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).
Where the state had given a contract to sell school land by which it agreed to give a deed in fee simple, the fact that after such contract was made the Constitution was amended making it illegal to deed away mineral rights on school lands would not prevent the state from conveying the land under terms of the original contract when payment in full was made. Reavis v. State, 140 Neb. 442, 300 N.W. 344 (1941).
Mineral rights in state school lands cannot be conveyed in the absence of legislative sanction for such disposition. Briggs v. Neville, 103 Neb. 1, 170 N.W. 188 (1918).

All condemnations of educational lands shall be exercised in the manner set forth in section 72-224.03; Provided, condemnation proceedings may be brought by the United States of America in the district court of the United States of America.

If the school land to be taken is held under lease, the fair and reasonable value of the interest of the state as trustee for the public schools in said land so taken shall be ascertained as is provided in section 72-224.03; Provided, if the condemner desiring to acquire such land from the board is unable to adjust the value of the improvements and any damage thereto, and the damage otherwise arising to the holder of the lease by the condemnation of his interest in the lease, if any, with the holder of the lease, the proceedings to ascertain such damage, if any, and to acquire the interest of the holder of the lease shall be had as is provided in section 72-224.03. The value of the improvements taken, the damage thereto, and any other damage to the holder of the lease, as above provided, shall be paid to the owner of the lease.

Except as otherwise provided in section 72-222.02, any public body that has or hereafter shall be granted by the Legislature the authority to acquire educational lands for public use shall be required to condemn the interest of the state, as trustee for the public schools, in educational lands in the following manner:

(1) The proceedings shall be had before a board consisting of (a) the superintendent of a school district offering instruction in grades kindergarten through twelve, (b) a certified public accountant, and (c) a credentialed real property appraiser, all appointed by the Governor for a term of six years, except that of the initial appointees one shall serve for a term of two years, one for a term of four years, and one for a term of six years as designated by the Governor. The members of the board shall each receive fifty dollars for each day actually engaged in the performance of official duties and shall be reimbursed for expenses as provided in sections 81-1174 to 81-1177 to be paid by the Board of Educational Lands and Funds;

(2) The condemnation proceedings shall be commenced by the filing of a plat and complete description of the lands to be acquired together with an application for that purpose with the secretary of the Board of Educational Lands and Funds. Notice of the pendency of such application and the date of hearing shall be given by serving a copy of the application, together with notice of the date of hearing, upon the Governor and the Attorney General. The date of hearing shall be not less than ten days from the date of the filing of the application;

(3) The condemner and the Board of Educational Lands and Funds may present evidence before the board of appraisers. The board shall have the power to administer oaths and subpoena witnesses at the request of either party or on its own motion;

(4) After hearing the evidence, the board of appraisers shall make the award and file same in the office of the Board of Educational Lands and Funds. Such award may be appealed, and the appeal shall be in accordance with the Administrative Procedure Act; and

(5) Upon payment of the amount of the award by the condemner, it shall be the duty of the secretary of the Board of Educational Lands and Funds to transmit a certified copy of the award to the condemner for filing in the office of the register of deeds in the county or counties where the land is located. The filing of such certified copy of the award shall have the force and effect of a deed of conveyance of the real estate and shall constitute a transfer of the title thereto.

Source:Laws 1949, c. 213, § 1(3), p. 608; Laws 1951, c. 237, § 1, p. 843; Laws 1963, Spec. Sess., c. 17, § 3, p. 149; Laws 1967, c. 466, § 5, p. 1446; Laws 1969, c. 514, § 7, p. 2106; Laws 1979, LB 381, § 1; Laws 1981, LB 121, § 1; Laws 1981, LB 204, § 142; Laws 1988, LB 352, § 146; Laws 1990, LB 1153, § 56; Laws 1991, LB 203, § 3; Laws 1994, LB 1107, § 3; Laws 2006, LB 778, § 6; Laws 2020, LB381, § 78.

Cross References

Administrative Procedure Act, see section 84-920.

If the land to be taken is held under lease contract, the board of appraisers also shall make a finding as to the interest of the owner in such lease contract, if any, and such value shall be separately assessed.

Annotations

Value of interests of state and lessee are required to be separately assessed, and the sum of the value of the separate interests may be more than the value of the land as an unencumbered whole. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

Any damage to the land of the state, in addition to the value of the land purchased, shall be assessed and included in the amount to be paid the state.

If there is a schoolhouse, cemetery or church building located upon school land or land of the state which has been or may be sold to any individual, corporation or parties, such school district, church or association, with the written consent of the purchaser or occupant, may purchase land for the purposes specified, and obtain a deed from the state, at the price the purchaser, assignee or occupant is to pay. The sum so paid for the tract obtained for such special purpose shall be deducted from the price the original purchaser was to pay.

Sales of land made for the special purpose mentioned in section 72-227 shall be for cash, and if there be buildings on such land belonging to the state, such buildings are to be appraised and sold separately.

Upon the sale of school lands, the Board of Educational Lands and Funds is directed to state the actual purchase price in the deed so that the amount actually paid will be known when the deed is recorded even though the recording is exempt from the documentary stamp tax. The county clerks of the respective counties are directed to enter such lands upon the tax list of the county upon the recording of such a deed.

Educational or saline lands sold under the provisions of any law of this state, or such as have been sold, shall not be taxable until the right to a deed shall have become absolute, but the value of the interest of such purchaser shall be taxable, which interest shall be determined by the value of the land and improvements, less the amount due the state; Provided, when such land shall be situated within the limits of any city or village and shall have been subdivided into lots, then it shall be subject to all special assessments for sidewalk, grading, paving, guttering, curbing, sewerage, and all other municipal improvements, in the same manner as other lots and lands in such city or village, except that a sale of such school lots to collect such assessment or assessments shall only pass the interest or title of the purchaser from the state, his heirs or assigns, and his or their right to a conveyance of the same, upon the payment of any residue of the purchase price or interest.

Annotations

School lands that have been sold by the state under contract are properly included in a drainage district, and are assessable for benefits derived therein. Morehouse v. Elkhorn River Drainage District, 90 Neb. 406, 133 N.W. 446 (1911).

Money received by the county treasurers of the several counties within the State of Nebraska on account of taxes wrongfully levied on educational lands of the state held under lease shall be, by the respective county treasurers, repaid without interest to persons who paid the same, or their representatives, upon orders in that behalf made by the county board of the respective counties; but no order shall be made for such repayment except upon the production of the county treasurer's receipt for taxes so paid. The county board of any county where school lands have been wrongfully taxed, and the taxes have not yet been paid, shall order the county treasurer to cancel the same.

The Board of Educational Lands and Funds shall have authority to adopt such rules and regulations as it shall deem necessary in the leasing of school lands and to prescribe such terms and conditions of the lease, not inconsistent with sections 72-205, 72-232 to 72-235, 72-240.02 to 72-240.05, and 72-242, as it shall deem necessary to protect the interests of the state. The board shall adopt and enforce a soil conservation program. Failure of the lessee to utilize the land for the purpose for which the land was leased or to observe and carry out soil conservation requirements as provided in the rules and regulations of the board shall be cause for cancellation of the lease.

Source:Laws 1899, c. 69, § 15, p. 306; R.S.1913, § 5861; C.S.1922, § 5197; C.S.1929, § 72-217; Laws 1935, c. 163, § 10, p. 602; C.S.Supp.,1941, § 72-217; Laws 1943, c. 159, § 1(1), p. 570; R.S.1943, § 72-232; Laws 1947, c. 235, § 3, p. 744; Laws 1961, c. 349, § 1, p. 1108; Laws 1965, c. 438, § 1, p. 1391; Laws 1974, LB 894, § 1; Laws 1993, LB 121, § 457; Laws 1999, LB 779, § 23; Laws 2021, LB528, § 13.

Annotations

Under former law, leasing of more than six hundred forty acres of school land to one person is prohibited unless such person owns or operates land on two sides of school land to be leased. Kidder v. Wright, 177 Neb. 222, 128 N.W.2d 683 (1964).
With specified exceptions, no person is permitted to hold under lease more than six hundred forty acres of school land. State v. Kidder, 173 Neb. 130, 112 N.W.2d 759 (1962).
Under former law, all unsold school lands were subject to lease at an annual rental of six percent of the appraised value. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).
Where a contract for lease of a tract of school lands has been created through application to the county treasurer, and by mistake a later application by another for the same tract is accepted, a writ of mandamus to compel execution of a lease cannot be issued to the second claimant though he has complied with all conditions precedent. State ex rel. O'Brien v. Board of Commissioners of Educational Lands and Funds, 116 Neb. 261, 216 N.W. 818 (1927).

The Board of Educational Lands and Funds shall pay the costs of administering the unsold school lands out of receipts from school land income. A cash fund is hereby authorized and the State Treasurer shall, out of the receipts for school land income, deposit in such cash fund that amount appropriated by the Legislature for each fiscal year on the first day of each fiscal year.

(1) The cost of developing irrigable school lands, located within the boundaries of an irrigation district, so that such lands may benefit from irrigation;

(2) The cost of accrued tolls and assessments on irrigable school lands located within the boundaries of an irrigation district; and

(3) The cost of current tolls and assessments on irrigable school lands located within the boundaries of an irrigation district.

The Board of Educational Lands and Funds is authorized to and shall take all necessary action for the development of irrigable school lands located within the boundaries of an irrigation district, so that such lands may benefit from irrigation. The cost of such development shall be paid by the board from funds available to the board for the administration of unsold school lands, and such costs shall be included in the costs certified to the State Treasurer pursuant to section 72-232.02.

When any irrigable school lands located within the boundaries of an irrigation district are leased, the Board of Educational Lands and Funds shall collect with the regular rental an amount sufficient to pay the cost of current tolls and assessments of the irrigation district on such land, and shall pay such tolls and assessments to the district each year. The amount so collected and paid by the board shall be a part of the cost of administering the school lands and shall be included in the costs certified to the State Treasurer pursuant to section 72-232.02.

The cost of administering unsold school lands shall include expenditures necessary for developing such school lands to their most productive use. All expenditures shall be directed by the board in exercising its responsibility as a trustee over the school land trust and shall not exceed twenty percent of all rental and bonus payments of the previous year, which amount shall be appropriated for each year to the board for payment of development and improvement costs completed and approved by the board upon contracts let for this purpose. All rental and bonus payment deductions as authorized by this section shall be remitted to the State Treasurer for credit to the Land Improvement Fund, which fund is hereby created, to be expended upon proper warrants in accordance with law. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Cross References

Nebraska Capital Expansion Act, see section 72-1269.
Nebraska State Funds Investment Act, see section 72-1260.

Applications to lease any school lands shall be made to the Board of Educational Lands and Funds. Each such application shall contain an affidavit that the applicant desires to lease and operate such land for the applicant's own use and benefit and that the applicant will not sublease or otherwise dispose of the same without the written approval of the board and will commit no waste or damage on the land nor permit others to do so. The Board of Educational Lands and Funds may, at least once in each year, designate a day and hour for offering, in a public manner in the respective counties, lease contracts on all the educational lands in each respective county which may be subject to lease at the time of such offering. The offering shall be announced in a public manner by publishing a notice thereof three weeks preceding the auction in one or more of the legal newspapers published or of general circulation in the county in which the unleased land is located. If the board is unable to have a representative attend the offering, the county treasurer may, upon the direction of the board, act for it. Adjournments may be taken from day to day until all of the lands have been offered. No lease shall be sublet or assigned without the written approval of the board.

Source:Laws 1899, c. 69, § 15, p. 306; R.S.1913, § 5861; C.S.1922, § 5197; C.S.1929, § 72-217; Laws 1935, c. 163, § 10, p. 602; C.S.Supp.,1941, § 72-217; Laws 1943, c. 159, § 1(2), p. 571; R.S.1943, § 72-233; Laws 1947, c. 235, § 4, p. 745; Laws 1963, c. 416, § 1, p. 1337; Laws 1967, c. 466, § 7, p. 1447; Laws 1993, LB 121, § 458; Laws 1999, LB 779, § 24; Laws 2021, LB528, § 14.

Annotations

Board authorized to readvertise sale of lease where upset bid received after public auction, but before board acceptance of highest bid. Anderson v. Board of Educational Lands & Funds, 198 Neb. 793, 256 N.W.2d 318 (1977).
A lease cannot be sublet or assigned without the consent of the Board of Educational Lands and Funds. State v. Kidder, 173 Neb. 130, 112 N.W.2d 759 (1962).
Cited in summarizing history of litigation over renewal of school land leases. State ex rel. Ebke v. Board of Educational Lands & Funds, 159 Neb. 79, 65 N.W.2d 392 (1954).
Board of Educational Lands and Funds is vested with discretionary power in approving school land lease. State ex rel. Raitt v. Peterson, 156 Neb. 678, 57 N.W.2d 280 (1953).
Notice of sale at public auction is required. State v. Cooley, 156 Neb. 330, 56 N.W.2d 129 (1952); State v. Gardner, 156 Neb. 326, 56 N.W.2d 135 (1952).
Under former law, third party got lease if he offered greater amount at auction. Propst v. Board of Educational Lands & Funds, 156 Neb. 226, 55 N.W.2d 653 (1952).
Beneficiaries of trust can be protected by placing leases up at public auction. State ex rel. Ebke v. Board of Educational Lands & Funds, 154 Neb. 244, 47 N.W.2d 520 (1951).
Leases are required to be made after public offering and competitive bidding. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).
The auction of state school land leases, pursuant to this section, may not be conducted by the county clerk, but must be conducted by the commissioner of public lands and buildings, or, under his direction, by his deputy, or the treasurer of the county in which such lands are located. Stock Yards Nat. Bank v. Wyman, 130 Neb. 113, 264 N.W. 157 (1936).

In order for any person to be eligible to bid on a school land lease, he must file a bank draft, certified check or cash for each lease with the county treasurer of the county in which the land is located prior to the sale, payable to the Board of Educational Lands and Funds, equivalent to rent of the first year of the lease on each parcel or tract on which he contemplates bidding. Any bidder who is unsuccessful in the bidding shall have his deposit returned to him immediately after the acceptance of the bid by the Board of Educational Lands and Funds. The deposit of the acceptable bidder shall be applied either on the bonus bid or the rent for the first year. If the accepted bidder fails to pay either the bonus bid or rent for the first year of the lease, he shall forfeit the amount of the deposit and the Board of Educational Lands and Funds shall resubmit the land for bids and a new lease.

The board shall, if the foregoing proceedings appear to be regular, issue to the applicant a lease on the land. Each lease shall contain a covenant or provision (1) that the Board of Educational Lands and Funds may, whenever such board deems it to be for the best interest of the state, adjust the rental of such lands; (2) that the lessee will not sublease or otherwise dispose of such lands without the written consent of the board and will commit no waste or damage on the land nor permit others to do so; (3) that the lessee will observe and carry out soil conservation requirements according to the rules and regulations of the board; (4) that the lessee will pay for the use of such lands the fair market rental as determined by the board; (5) that, upon a failure to pay any rental for a period of sixty days from the time the payment becomes due or upon failure to perform any of the covenants of the lease, the lease may be forfeited and fully set aside, as provided for in sections 72-235 to 72-239; (6) that the lessee will promptly pay the rental semiannually in advance; (7) that in the event the lessee shall fail to pay rental in advance by the due date, interest shall be assessed at an annual interest rate of nine percent until such time as the rent is paid; and (8) that the premises will be surrendered at the expiration of the lease, unless renewed, or upon violation of any of the terms of the lease. Leases shall be for periods of five to twelve years less the period intervening between the date of the execution of the lease and December 31 of the previous year. The board may offer a lease for a period of less than five years if a lease failed to generate interest at an auction and if the board agrees that reducing the minimum lease term will attract a bid or bids for such a lease. When two or more contiguous tracts are under separate lease with different expiration dates, the board may, if it is deemed to be in the best interest of the state, offer leases for less than twelve years on tracts having the earlier lease expiration date, to coincide with the last expiring lease, in order that all contiguous lands eventually may be offered under one lease.

Source:Laws 1899, c. 69, § 15, p. 306; R.S.1913, § 5861; C.S.1922, § 5197; C.S.1929, § 72-217; Laws 1935, c. 163, § 10, p. 602; C.S.Supp.,1941, § 72-217; Laws 1943, c. 159, § 1(2), p. 572; R.S.1943, § 72-234; Laws 1947, c. 235, § 5, p. 746; Laws 1949, c. 212, § 6, p. 604; Laws 1965, c. 438, § 2, p. 1392; Laws 1967, c. 466, § 9, p. 1449; Laws 1974, LB 894, § 2; Laws 1999, LB 779, § 25; Laws 2021, LB528, § 15.

Annotations

Board authorized to readvertise sale of lease where upset bid received after public auction, but before board acceptance of highest bid. Anderson v. Board of Educational Lands & Funds, 198 Neb. 793, 256 N.W.2d 318 (1977).
Improvements should be appraised as of the date of execution of lease. Jessen v. Blackard, 159 Neb. 103, 65 N.W.2d 345 (1954).
Cited in summarizing history of litigation over renewal of school land leases. State ex rel. Ebke v. Board of Educational Lands & Funds, 159 Neb. 79, 65 N.W.2d 392 (1954).
Highest bidder at public sale is not entitled to lease until it has been approved by board. State ex rel. Raitt v. Peterson, 156 Neb. 678, 57 N.W.2d 280 (1953).
New leases run for period of twelve years. State v. Cooley, 156 Neb. 330, 56 N.W.2d 129 (1952); State v. Gardner, 156 Neb. 326, 56 N.W.2d 135 (1952).
School land lease is personal property. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

No lease shall be assigned nor the assignment thereof approved by the Board of Educational Lands and Funds unless (1) the person to whom the lease is assigned is a resident of the State of Nebraska or, if a nonresident of the State of Nebraska, owns land adjoining the school land set forth in the lease to be assigned and (2) such assignee will operate the land for his own use and benefit.

Annotations

Bonus was paid to get board to approve assignment. State v. Gardner, 156 Neb. 326, 56 N.W.2d 135 (1952).
In class action on behalf of all renewal leaseholders, this section could not be invoked where applicable only to some. Propst v. Board of Educational Lands & Funds, 103 F.Supp. 457 (D. Neb. 1951).

If any lessee of educational lands fails to perform any of the covenants of the lease or is in default of semiannual rental due the state for a period of sixty days, the Board of Educational Lands and Funds may forfeit the lease of such person. If the lessee is in default in the payment of rental, the board may cause notice to be given such delinquent lessee in accordance with section 72-236 that, if such delinquency is not paid within thirty days from the date of service of such notice by either registered or certified mail or the date of the first publication of such notice, his or her lease will be declared forfeited. If the amounts due are not paid within such time, the board may declare the lease forfeited and the land described therein shall revert to the state. Before a forfeiture of a lease shall be declared for a failure to perform the covenants of the lease other than the payment of rentals, the board shall give notice of such proposed forfeiture to such lessee, or to his or her personal representative or next of kin if he or she is dead, by either registered or certified mail, setting forth a time such a lessee, or his or her personal representative or next of kin, may show cause and have a hearing as to whether or not such lease shall be forfeited. The order of forfeiture shall be entered upon the records of the board. The board is required to serve such notice of delinquency and proceed with the forfeiture, as stated in such notice, at least once in each year. The provisions of this section and sections 72-236 to 72-239 shall apply to all lands heretofore or hereinafter leased as educational lands of this state.

Source:Laws 1899, c. 69, § 17, p. 309; Laws 1903, c. 100, § 1, p. 571; R.S.1913, § 5863; C.S.1922, § 5199; Laws 1927, c. 192, § 1, p. 548; C.S.1929, § 72-219; Laws 1935, c. 163, § 12, p. 605; C.S.Supp.,1941, § 72-219; R.S.1943, § 72-235; Laws 1947, c. 235, § 6, p. 747; Laws 1957, c. 242, § 54, p. 863; Laws 1961, c. 351, § 2, p. 1110; Laws 1999, LB 779, § 26; Laws 2021, LB528, § 16.

Annotations

Right of redemption from forfeiture of contract of sale was governed by law in effect at time of sale. Stoller v. State, 171 Neb. 93, 105 N.W.2d 852 (1960).
Where bank was assigned lease as security and did not have actual possession of lands, it was not liable to state for delinquent rentals. State ex rel. Johnson v. Commercial State Bank, 142 Neb. 752, 7 N.W.2d 654 (1943).
To declare a forfeiture for failure to pay interest on a contract for the sale of school land is mandatory, and, when no such forfeiture is declared, the contract remains in full force and effect. Mulhall v. State, 140 Neb. 341, 299 N.W. 481 (1941).
The present provision of this section for service of notice of cancellation of a contract of sale of state school lands because of delinquency of interest payments may be made applicable to contracts issued prior to enactment of the amendment; and, if after notice is given and forfeiture is declared, the purchaser fails to redeem, all rights in such contract shall be lost. Spahr v. Godfrey, 130 Neb. 539, 264 N.W. 560 (1936).
Under former law, the requirement of this section that notice of default be served upon the lessee before a forfeiture can be declared is not met by mailing such notice in a registered letter to a deceased lessee, and until sufficient notice is given, a valid lease to another cannot be made. State ex rel. Green v. Cowles, 90 Neb. 839, 134 N.W. 959 (1912).

All right, title, and interest in any and all improvements to a lease forfeited for failure to pay rental pursuant to section 72-235 also shall be forfeited to the Board of Educational Lands and Funds until the rental has been paid in full. The board shall have the authority to offer forfeited leases for sale without regard to any improvements and growing crops thereon.

The notice required by section 72-235 shall be given by either registered or certified letter or by publication for three weeks in a newspaper published or of general circulation in the county where the land is located. In serving the notice of delinquency the Board of Educational Lands and Funds shall recognize as the lessee the person or persons whose name appears last of record in the office of the board.

The owner of any lease forfeited as provided in section 72-235 may redeem by paying all delinquencies, fees, and costs of forfeiture at any time before the Board of Educational Lands and Funds completes the advertising of such land for lease at public auction.

Annotations

Holder of a lease of state school lands which has been declared forfeited for nonpayment of rentals may redeem from such forfeiture by paying all delinquencies, fees and costs of forfeiture at any time before such land is advertised to be leased at public auction. Stock Yards Nat. Bank v. Wyman, 130 Neb. 113, 264 N.W. 157 (1936).
An assignee of a lease of school lands, executed pursuant to Chapter 74, Laws 1883, who was delinquent in rental payments, was entitled to redeem from a forfeiture incurred by such delinquency at any time before such lands were released. Hile v. Troupe, 77 Neb. 199, 109 N.W. 218 (1906), affirmed on rehearing 84 Neb. 266, 121 N.W. 109 (1909).

Movable improvements on lands reverting to the state through forfeiture shall be sold under the direction of the Board of Educational Lands and Funds at public auction, and the proceeds received therefrom shall inure to the holder of the forfeited lease, after payment has been made to the state for delinquent interest or rental, expenses incurred in holding such auctions, and irrigation taxes due the irrigation district in which the land is situated.

Annotations

This section indicates that movable improvements are the property of the lessee. Blomquist v. Board of Educational Lands & Funds, 170 Neb. 741, 104 N.W.2d 264 (1960).
Legislature clearly intended that lessee should be encouraged to improve lands by good husbandry by providing for reimbursement for improvements and reducing land to cultivation. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

The Board of Educational Lands and Funds may extend the time of payment of delinquent interest or rental when it deems it to be in the best interest of the state, and it has full assurance that such delinquent interest or rental will be paid. Such extensions shall be granted, upon proper application to the board, and then only to the record owner of the lease who actually uses or occupies educational lands, for periods of one year, and shall bear interest the same as other delinquent rentals, and shall be upon condition the lease is assigned to the state as part assurance of payment. In the event the movable improvements on the land do not constitute sufficient security to justify an extension of time, the lessee may give a lien to the state on the growing crops thereon, if any.

Annotations

School lands are subject to an annual rental of six percent of the appraised value. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).
Under prior law at the expiration of a lease on school lands executed prior to July 9, 1897, the only advantage afforded such lessee is the right to obtain a renewal free from competition and at the previous rental rate. Stanser v. Cather, 85 Neb. 305, 123 N.W. 316 (1909), rehearing denied 85 Neb. 313, 124 N.W. 102 (1909).

If no such application for a new lease is received or if the applicant fails to meet the requirements for a new lease, the Board of Educational Lands and Funds may, at any time within three months after the expiration of the lease, enter into a lease with any other person it deems willing and able to meet the standards prescribed by the board in its rules and regulations at the rental rate for land of such classification.

Annotations

If no application is made by lessee, board may enter into a lease with any person willing and able to meet statutory requirements. State ex rel. Ebke v. Board of Educational Lands & Funds, 154 Neb. 244, 47 N.W.2d 520 (1951).

When the Board of Educational Lands and Funds deems it expedient, due to breaking or retirement of the land, erosion, resodding, or other causes, to reclassify the school land in any county, and at least once in every five-year period, it shall cause reclassification to be made of the land under lease. When this has been accomplished the new rental for each lease shall be computed by applying the new classification of the land to the rental schedules according to classification then in effect and which have been duly adopted by the Board of Educational Lands and Funds for the counties involved. Rental shall be paid by the lessee upon the basis of the new classification. Not more often than once in every two years the lessee may request the board to make a reclassification of the land he or she has under lease and it shall be the duty of the board, within six months after receipt of such request, to cause the classification to be reviewed.

All leases hereafter entered into by the board shall be made by the board to expire on December 31 of a given year.

The Board of Educational Lands and Funds shall sit twice each year to hear complaints from lessees as to the rental of their leases and may take such action as it may find to be right and proper in regard thereto.

Before any buildings, wells, irrigation improvements, dams, or drainage ditches are placed upon school lands by a lessee, written approval must be obtained from the Board of Educational Lands and Funds, except necessary improvements for the temporary handling and sheltering of livestock, and such improvements where approval is secured shall be called permitted improvements and belong to the lessee and the lessee has the right to be paid a sum of money equal to the value which the improvements add to the value of the land by the buyer of the land or the new lessee in accordance with procedures as given in sections 72-240.10 to 72-240.23 and 72-258. The value to the land of each permitted improvement shall not exceed its replacement cost less depreciation. Any such improvements placed upon school lands before September 14, 1953, and any improvements which were bought by new lessees during an involvement by the state in the transferring of leases after September 14, 1953, shall be considered as authorized or permitted improvements whether or not approval has been secured from the board and shall belong to the lessee unless there has been a provision in the lease to the contrary or unless there has been some written agreement between the lessee and the board to the contrary. Any improvements placed upon school lands after September 14, 1953, where written approval for such improvements was not obtained from the board and where there was no involvement by the state in the transferring of leases or other written agreement with such lessees to the contrary, shall be called nonpermitted improvements and considered as owned by the lessee, whether or not the nonpermitted improvements are attached to the land, unless there has been a provision in the lease to the contrary, and, the lessee shall have the right either (1) to remove such improvements from the land any time during the term of the lease or within six months after the land is sold or leased to a new lessee, and when the nonpermitted improvements are removed the old lessee shall clean up the debris caused thereby or bury it at least three feet below the surface of the land and any basements or holes caused by the nonpermitted improvements shall be filled such that cultivated crops can be grown on the land or (2) to sell the nonpermitted improvements to the buyer of the land or the new lessee at prices agreed upon by the old lessee and the buyer or new lessee. If the parties cannot agree upon the prices of the nonpermitted improvements, or if the improvements are not removed from the land within six months after the land is sold or leased to a new lessee other than the old lessee, the improvements shall become the property of the state. The board shall notify the old lessee by certified letter of the name and address of the purchaser of the land or the new lessee within ten days after the land has been sold or leased to a party other than the old lessee. The board shall, at the same time, notify the old lessee how much money the old lessee shall have to place in escrow with the county treasurer of the county in which the land is located for each nonpermitted improvement if the old lessee takes the option to remove any or all nonpermitted improvements to guarantee removal of debris and to do other things required by the board so as not to damage the land. The old lessee shall within thirty days after receipt of such certified letter notify the board which improvements he or she intends to remove from the land and which shall be left on the land and show proof of deposit of escrow money. If the debris is not removed and if other things required by the board are not done within the six-month period after the land is sold or leased, the old lessee shall forfeit the money placed in escrow to the state, and the board shall hire a contractor to do the things required of the old lessee in order that there not be damage to the land. Any money left in the escrow fund after being depleted by making payment to the contractor for the work done shall be remitted to the old lessee. The board shall have authority to sell any improvement left on the land.

Annotations

Where no permission by Board of Educational Lands and Funds was required before improvements were placed on lands by laws in effect at time lease was executed, tenant had compensable interest in grain bin erected on a permanent-type concrete foundation. State v. Haberman, 191 Neb. 127, 214 N.W.2d 266 (1974).
Lessee gains no interest in improvement constructed in 1954 for failure to comply with conditions precedent of this section. State v. Bardsley, 185 Neb. 629, 177 N.W.2d 599 (1970).
After 1953, tenant was required to obtain permission for placing of specified improvements on school land. Banks v. State, 181 Neb. 106, 147 N.W.2d 132 (1966).

The Board of Educational Lands and Funds shall be responsible and make necessary expenditures for the control of noxious weeds on all school lands of the state. Any expenditure made by such board for the control of noxious weeds shall be considered a cost of administering unsold school lands.

The Board of Educational Lands and Funds shall have the power to contract with supervisors of weed eradication districts of this state or any private or commercial weed control service for the purpose of controlling noxious weeds on school lands.

The Board of Educational Lands and Funds shall have the authority and duty, as specified in sections 72-240.10 to 72-240.23 and 72-258, to determine the value to the land of permitted improvements and growing crops, owned by the lessee of record, on educational lands of the State of Nebraska prior to the sale or lease of such lands. The value to the land of permitted improvements shall not exceed their replacement cost less depreciation. In making such determinations, the board shall notify the lessee that it intends to inspect the premises and shall attempt to so inspect at the convenience of the lessee.

The board shall determine what improvements and growing crops are on the land and develop a specific listing and detailed description of permitted and nonpermitted improvements owned by the lessee and by the State of Nebraska. Only those permitted improvements owned by the lessee shall be considered in determining the value of the lessee's interest therein. The listing of permitted improvements and growing crops shall be acknowledged and agreed upon in writing by both parties. In the event of a dispute regarding ownership of any improvements, either the board or the lessee may file an action in district court for a declaratory judgment.

Annotations

Ownership of improvements on school lands determined pursuant hereto. State v. Rosenberger, 187 Neb. 726, 193 N.W.2d 769 (1972).

The board shall make an appraisal of the lessee's permitted improvements and growing crops and attempt to arrive at an agreement with the lessee as to the value of the permitted improvements owned by such lessee.

If the value to the land of any permitted improvements or growing crops cannot be agreed upon, either the board or the lessee may file a petition in the county court of the county wherein the land is situated to have the value to the land of the permitted improvements and growing crops determined. Prior to the filing of such petition the lessee shall have the right, by filing written notice with the board, to elect to remove prior to the expiration of the lease any permitted structural improvements, owned by him, which can be removed without damage to the land or other permitted improvements located on the land. The lessee shall also have the right, by filing written notice with the board, to elect to harvest any fall-seeded growing grain crops in lieu of compensation for the same.

(1) Upon the filing of a petition under section 72-240.13, the county judge or clerk magistrate, within three days by order entered of record, shall appoint three disinterested freeholders of the county, not holders of leases of school lands, to serve as appraisers. The county judge or clerk magistrate shall direct the sheriff to summon the appraisers so selected to convene in the office of the county judge at a time specified in the summons for the purpose of qualifying as appraisers and thereafter proceed to appraise the value of the permitted improvements to the land and growing crops owned by the lessee at the time of termination of the occupying tenant's lease.

(2) Notice of the appointment of the appraisers and of the time and place of the meeting of the board of appraisers to have the value of the permitted improvements to the land and growing crops assessed shall be served upon both the board and the lessee by registered or certified mail at their last-known mailing addresses at least ten days prior to the meeting of the board of appraisers.

The appraisers shall be qualified by the county judge and an oath administered in the same manner as required by sections 76-707 and 76-708.

The appraisers shall carefully inspect and view the permitted improvements and growing crops to be valued and shall hear any party interested therein in reference to the value of the permitted improvements to the land and growing crops.

After the inspection, view and hearing provided for in section 72-240.16 the appraisers shall assess the value to the land of the permitted improvements and growing crops as of the date of expiration of the lease on the land and shall make and file a report of such value in writing with the county judge and shall include in such report a list of the value to the land for each permitted improvement individually. Such report shall be filed with the county judge within ten days from the date of the hearing held by the appraisers.

(1) The appraisers shall consider in determining the value of the permitted improvements the cost of the permitted improvement less any depreciation, obsolescence and any want of benefit to the land.

(2) In the case of growing crops the appraisers shall assess the value of the crop as of the date of expiration of the lease. The appraisers shall consider in the case of fall-seeded grain crops the cost of seed-bed preparation, fertilization, seed and seeding.

(3) In the case of perennial crops such as alfalfa the appraisers shall consider the costs of establishing such crop, its condition as of the expiration of the lease and normal expected remaining life.

Annotations

In determining value of permitted improvements made by lessee of school lands, the value of the land means that amount of money that the improvement enhances, contributes, increases, or adds to the value of the land. Pettijohn v. State Board of Educational Lands and Funds, 204 Neb. 271, 281 N.W.2d 901 (1979).
Lessee's value in a growing crop is more than the cost of seed, preparation, and planting. Friehe v. State, 199 Neb. 504, 260 N.W.2d 188 (1977).
In the absence of agreement, a tenant on school lands has a compensable interest in the crops growing thereon on the date of termination of his lease. State v. Bush, 188 Neb. 824, 199 N.W.2d 704 (1972).

(1) Appeals from the valuation set by the board of appraisers may be made by either party in the same manner as appeals from the award of a board of appraisers in condemnation proceedings as governed by sections 76-715 to 76-721. Those provisions shall apply as if the board is the condemner and the lessee is the condemnee.

(2) No bond shall be required of the board to cover the value to the land of the permitted improvements and growing crops found by the appraisers during the appeal.

Annotations

Trial court is without authority to fix appraiser's fees and attorney's fees to be taxed against the Board of Educational Lands and Funds. Pettijohn v. State Board of Educational Lands and Funds, 204 Neb. 271, 281 N.W.2d 901 (1979).

The appraisers shall receive a reasonable fee, not to exceed fifty dollars each, for their services, to be fixed by the county judge, and the same shall be taxed to the lessee.

(1) When the land is put up for sale, the minimum sale price shall be determined as in section 72-258.

(2) At the time of sale or lease, but prior to the commencement of bidding, a representative of the board shall announce to all present the value to the land of the permitted improvements and growing crops for which the purchaser of the land or lease must pay the lessee as determined under sections 72-240.10 to 72-240.23 and 72-258 or by agreement and shall clearly state that the payment for these permitted improvements and growing crops shall be in addition to the price paid for the land or the lease.

(3) In making the publications required by section 72-233 or 72-258, the board shall include in those publications the determined value to the land of the permitted improvements and growing crops owned by the lessee of the land and shall clearly indicate that this amount is to be paid in addition to the price paid for the land or the lease.

(4) When the land is sold, the purchaser shall be instructed by the board that he or she must, within thirty days of the date of the sale, deposit the amount of value of the permitted improvements with the county treasurer of the county wherein the land is situated with instructions to the treasurer that the money be paid to the lessee upon notification of issuance of the deed or lease. The state shall have a lien upon the funds so paid to the amount of any unpaid rent and interest on such lands due and owing to the state from the former lessee.

The permitted improvements and growing crops covered by sections 72-240.10 to 72-240.23 and 72-258 shall be deemed to be separate permitted improvements and if the board and the lessee agree as to the value of some permitted improvements but disagree as to the value of others, only those on which they do not agree need be appraised under the appraisal provisions of sections 72-240.10 to 72-240.23 and 72-258.

If land is not sold under the provisions of sections 72-240.10 to 72-240.23, 72-257, and 72-258 and is leased according to section 72-258.01, the new lessee shall pay to the old lessee the value of his or her permitted improvements as determined for sale purposes.

Any lessee of educational lands may, subject to the approval of the board, relinquish his interest in such lease as of the following December 31 by notice to the Board of Educational Lands and Funds on or before November 30 of that year. The notice must be in writing signed and acknowledged by the lessee, and delivered to the office of the board.

The Board of Educational Lands and Funds and the Nebraska Investment Council shall jointly report annually to the Clerk of the Legislature, and such report shall contain anticipated future actions by the board as well as actions already taken. The report submitted to the Clerk of the Legislature shall be submitted electronically. The board's portion of the report shall include (1) with reference to each tract of land sold pursuant to section 72-201.01: (a) The legal description; (b) the unique characteristics of the land being sold; (c) the appraised value; (d) the sale price; (e) the amount of funds received in the calendar year covered by the report from the sale; (f) the disposition of the funds; (g) the total number of acres of any unsold educational lands remaining under the general management and control of the board by county; (h) the total appraised value of unsold land; and (i) the percentage of the investment portfolio remaining in real estate, including all nonagricultural real estate and (2) the corresponding information for any land that has been acquired or traded. The council's portion of the report shall include a cost-benefit analysis which considers the land being sold versus the anticipated investment potential of proceeds resulting from the sale. The cost-benefit analysis model used shall be consistent with the standards of the investment industry at the time of the proposed sale. Each member of the Legislature shall receive an electronic copy of such report by making a request for it to the chairperson of the board.

An assignment of a school land lease shall not be valid until recorded in the office of the Board of Educational Lands and Funds and shall not be eligible to such record if there are any payments of interest or rental due at the time the assignment is offered for record.

Annotations

Assignment of school land lease is not valid until recorded in the office of the Board of Educational Lands and Funds. Kidder v. Wright, 177 Neb. 222, 128 N.W.2d 683 (1964).
Assignments of school land leases are permitted, but to be effective against the state must be recorded. State ex rel. Johnson v. Commercial State Bank, 142 Neb. 752, 7 N.W.2d 654 (1943).

The publisher of any advertisement in connection with the forfeiture, leasing or sale of any educational lands shall be allowed the fees fixed by law for publishing legal notices, or standard commercial rates when the board elects to use commercial advertising.

Any portion of the lands of this state governed by sections 72-201 to 72-251, adjoining the site of any city or town, may be subdivided into lots and leased as herein provided. The Board of Educational Lands and Funds, being satisfied that by a division of any such tract into lots, the lease of the same can be made for a greater amount than if leased in tracts of forty acres, as herein provided, shall have the authority to employ the necessary surveyors, and cause such tracts to be subdivided into lots and tracts of such size as they may determine, and a plat of the same shall be made and filed for record in the office of the county clerk. Such lots shall be appraised by the appraisers to be appointed by the board, none of whom shall be occupants of the land to be leased. Tracts of land so subdivided and appraised shall be leased according to the provisions of said sections. The board shall give thirty days' notice of such letting, and publish the same in a newspaper of general circulation published in the county in which said lots are situated. Each notice shall contain a list of the lots to be leased, and the appraised value of each. The leasing of such lots shall take place, on the day appointed, under the direction of the board, and shall be leased to the highest bidder, but in no case for less than six percent of the appraised value. Lots remaining unleased shall be again offered for lease at public auction at such time as the board shall direct, and the board may adjourn the leasing from day to day until all the lots are offered.

If any person shall commit waste or trespass, or other injury or damage, or destroy any of the trees upon any of the educational lands of this state referred to in sections 72-201 to 72-251, except as herein authorized, he shall be guilty of a Class II misdemeanor.

All leases executed after May 3, 1935, with respect to educational lands shall contain a covenant to the effect that no prairie lands shall be broken without written permission authorized by the Board of Educational Lands and Funds.

A judge of the district court shall refer charges made under section 72-245 to the grand jury at each term for investigation, and it shall make presentment of all violations thereof.

The Board of Educational Lands and Funds may sell timber on educational lands whenever the board deems it for the best interest of school funds. Said timber shall be sold at public auction in accordance with rules and regulations adopted by the board.

The Governor of the state is empowered and directed to receive from the United States all money that may be due or may become due to the state, and it shall be his or her duty to deposit the same without delay in the treasury of the state, taking the State Treasurer's receipts therefor. All money received from the United States, for the particular benefit of any institution, department, or activity under the jurisdiction of the Department of Health and Human Services or the Department of Correctional Services, shall be paid to the particular institution, department, or activity for the benefit of which it was received, as directed by the proper department, and by such institution, department, or activity deposited with the State Treasurer not later than the first day of the month following that in which received.

Cross References

Purpose of section, see section 83-901.

All money that may be received from the United States on account of the five percent fund on cash sale shall be placed to the credit of the permanent school fund of the state.

All money arising from collections on judgments in favor of the state, shall be transferred and paid into the permanent school fund and become a part thereof.

(1) The Board of Educational Lands and Funds is authorized and empowered to enter into agreements with the officers and agents of the United States Government for the exchange of any state educational lands lying within any federal forest or game reserve within this state for other lands of equal areas and value belonging to the United States. The board is authorized to convey any such lands to the United States by deed as provided in section 72-208, upon the execution by the United States Government of a patent to the State of Nebraska for the United States lands so exchanged.

(2) The Board of Educational Lands and Funds is authorized, upon the written approval of the Governor, to enter into agreements with individuals for the exchange of any state educational lands for other lands of equal areas or value. Before such an exchange shall be made, it shall be shown that the Board of Educational Lands and Funds will likely be benefited by the exchange.

Annotations

State recognizes that it cannot expect United States to bear burden created by outstanding leaseholds. State of Nebraska v. United States, 164 F.2d 866 (8th Cir. 1947).

Any lands so received and patented from the United States shall be held as a part of the educational lands of this state, and shall be subject to all existing laws pertaining to such lands; Provided, that such lands, so received in exchange, shall only be subject to lease for terms not exceeding twelve years, with the privilege of renewing for a like term in the option of the board. Such leases may also include the right to the lessee of removing all improvements he may have erected on the land.

Annotations

Right of lessee to remove all improvements he may have erected is recognized. State v. Platte Valley P. P. & I. Dist., 147 Neb. 289, 23 N.W.2d 300 (1946).

The Board of Educational Lands and Funds is further authorized to secure from the holders of any leases of any educational lands lying in any federal forest reserve, surrenders, relinquishments, or cancellation of such leases. If the board and the holder of any such leases cannot agree upon the terms for such surrender, relinquishment, or cancellation, the board may take over the interest of such holder by the exercise of the power of eminent domain. The procedure to condemn property shall be exercised in the manner set forth in sections 76-704 to 76-724.

Annotations

State may condemn leasehold for forest reserve. State of Nebraska v. United States, 164 F.2d 866 (8th Cir. 1947).

The appraised value of any state lands exchanged under sections 72-253 to 72-255 shall not be less than seven dollars per acre, and the appraised value of the United States land received therefor shall correspond to this requirement.

All lands, now owned or hereafter acquired by the state for educational purposes, may be sold at the expiration of the present leases. The Board of Educational Lands and Funds shall retain all mineral rights in the land sold. Prior to such sale, the land may be appraised for purposes of sale in the same manner as privately owned land by a certified general real property appraiser appointed by the board and thereafter shall be sold at public sale at not less than the appraised value. When two or more contiguous tracts are under separate leases with different expiration dates, the board may, if it is deemed to be in the best interest of the state, defer the sale of any tract having an earlier lease expiration date and may offer the tract for lease for less than twelve years to coincide with the expiring lease of the contiguous tract, in order that the contiguous lands may eventually be offered for sale on the same date.

Source:Laws 1921, c. 81, § 1, p. 294; C.S.1922, § 5215; C.S.1929, § 72-235; Laws 1935, c. 163, § 17, p. 609; C.S.Supp.,1941, § 72-235; Laws 1943, c. 161, § 1, p. 575; R.S.1943, § 72-257; Laws 1949, c. 214, § 2, p. 611; Laws 1951, c. 239, § 1, p. 846; Laws 1961, c. 352, § 1, p. 1112; Laws 1963, c. 419, § 1, p. 1345; Laws 1965, c. 435, § 2, p. 1386; Laws 1967, c. 466, § 10, p. 1450; Laws 1973, LB 145, § 1; Laws 2000, LB 1010, § 3; Laws 2006, LB 778, § 7.

Annotations

Section held constitutional. State ex rel. Belker v. Board of Educational Lands & Funds, 184 Neb. 621, 171 N.W.2d 156 (1969).
In the event of sale of school land to third person, tenant has a right to compensation for improvements. Banks v. State, 181 Neb. 106, 147 N.W.2d 132 (1966).

The Board of Educational Lands and Funds shall review and set priorities for the sale of lands covered by leases expiring each year, giving the highest priority to those lands which it determines, considering all relevant factors, can be sold to the best advantage. Any leaseholder or other interested party may request that the land covered by any expiring lease be offered for sale, and the board shall give consideration to such request in deciding whether to offer such land for sale.

Educational land shall be offered for sale at public auction by a representative of the Board of Educational Lands and Funds and sold at not less than the appraised value to the highest bidder. Notice of such sale and the time and place where the same will be held shall be given by publication three consecutive weeks in some legal newspaper published in the county where the tracts of land or the lots are located or, in case no legal newspaper is published in the county, then in some legal newspaper of general circulation therein. The proof of such publication shall be made by the affidavit of the publisher or principal clerk of such newspaper or by some other person knowing about the same and shall be filed in the office of the board. When the land consists of an undivided interest in realty, an action to partition may be maintained in the same manner as provided by law for the partition of real property among several joint owners. All notices of sale shall be posted in the office of the board. The board may arrange for such commercial advertising of land sales as it deems in the best interest of the state.

Any person or entity requesting that a tract of land be sold at public auction shall file an agreement with the board to pay the appraised value or a higher value as a minimum opening bid for the land. Within sixty days after receipt by the board of the request, the board shall determine whether or not to offer the tract of land for sale at public auction with a minimum opening bid equal to that amount stated in the accepted agreement for the minimum opening bid and shall notify the person or entity requesting the auction of the board's determination prior to advertising the tract of land for sale. If the board determines to offer the tract of land for sale at public auction, the auction shall be held within one hundred twenty days after the board accepts the agreement for a minimum opening bid. If the board determines not to offer the tract of land for sale, the offering price and legal description of the tract of land shall be included in the annual report to the Legislature.

The sale shall be subject to confirmation by the board that the requirements of this section have been met. Settlement shall be made by paying cash of not less than twenty percent of the purchase price at the time of sale, and the balance shall be payable in cash within ninety days after the date of sale. If the person submitting the high bid for the land fails to pay the balance of the purchase price and complete the sale within ninety days, his or her rights under the sale, including the twenty percent downpayment, shall be forfeited by the board and a new sale shall be authorized.

Source:Laws 1921, c. 81, § 2, p. 295; C.S.1922, § 5216; C.S.1929, § 72-236; Laws 1935, c. 163, § 18, p. 610; C.S.Supp.,1941, § 72-236; Laws 1943, c. 161, § 2, p. 576; R.S.1943, § 72-258; Laws 1965, c. 435, § 3, p. 1386; Laws 1967, c. 467, § 16, p. 1456; Laws 1967, c. 466, § 11, p. 1450; Laws 1969, c. 589, § 3, p. 2440; Laws 1971, LB 23, § 2; Laws 1996, LB 1205, § 3; Laws 2000, LB 1010, § 4.

Annotations

New sale can only be held by the board in the event that the highest bidder fails to pay the balance of the purchase in ninety days. Bessey v. Board of Educational Lands & Funds, 185 Neb. 801, 178 N.W.2d 794 (1970).
Under former law, all of section constitutional except provisions relating to sale by county treasurer. State ex rel. Belker v. Board of Educational Lands & Funds, 184 Neb. 621, 171 N.W.2d 156 (1969).
Sale of school land leases made no reference to improvements. Banks v. State, 181 Neb. 106, 147 N.W.2d 132 (1966).

If such land should not be sold according to the provisions of sections 72-208, 72-257, 72-257.01, and 72-258, then it shall be offered for lease as the Board of Educational Lands and Funds shall provide for a period of not less than three years nor more than eight years as the board, in its discretion, shall determine. No such leased land shall be subsequently offered for sale until the expiration of such lease.

Annotations

Section held constitutional. State ex rel. Belker v. Board of Educational Lands & Funds, 184 Neb. 621, 171 N.W.2d 156 (1969).
Where school land is not sold, it can be offered for lease for a six-year period. Banks v. State, 181 Neb. 106, 147 N.W.2d 132 (1966).

Whenever a portion of the National System of Interstate and Defense Highways is constructed on school land and an interchange is constructed on such school land, the Board of Educational Lands and Funds shall offer such land for sale at public auction in such tracts as the board shall determine and sell it at not less than its appraised value. The sale shall be made subject to the rights of leaseholders, if any, and the leaseholder shall be paid for improvements and the value of the leasehold for agricultural purposes. The sale shall be made in accordance with the provisions of section 72-258.

For purposes of sales of educational lands at public auction, appraised value is the value as determined by the Board of Educational Lands and Funds.

(1) The Board of Educational Lands and Funds shall deposit the proceeds of the sales of educational lands with the State Treasurer for the benefit of the various funds as provided in this section.

(2) The proceeds of the sales of common school and saline educational lands shall be deposited with the State Treasurer for the benefit of the permanent school fund of the state.

(3) The proceeds of the sales of university educational trust lands shall be deposited with the State Treasurer for the benefit of the Permanent Endowment Fund referred to in section 85-123.

(4) The proceeds of the sales of state college educational trust lands shall be deposited with the State Treasurer for the benefit of the endowment fund referred to in section 85-317.

Cross References

Permanent school fund, see Article VII, sections 5 and 9, Constitution of Nebraska.

When any educational lands abutting on and adjacent to any city of the first or second class that are needed for the expansion of such city have been subdivided into lots for the purpose of sale, as provided by section 72-257, the Board of Educational Lands and Funds may cause a plat of such subdivision to be filed in the office of the clerk of the city together with a resolution of the board requesting annexation of the tract to the city.

Such plat shall accurately describe all subdivisions of such tract or parcel of land, numbering the same by progressive numbers and giving the dimensions in length and breadth thereof, and the breadth and courses of all streets and alleys established therein, and shall be certified to by the State Surveyor.

The city council shall, at the next regular meeting thereof after the filing of such plat, as required by section 72-259.01, and request for annexation, vote upon the question of such annexation. The vote thereon shall be spread upon the records of such city.

If a majority of all members of the council vote for such annexation, an ordinance shall be prepared and passed by the council declaring the annexation of such territory to the corporate limits of the city and extending the limits thereof accordingly. Such ordinance shall designate the name of the addition and the names of the streets therein.

There shall be filed forthwith, in the office of the register of deeds of the proper county, (1) a plat of such territory certified by the State Surveyor, (2) a certified copy of the resolution of the Board of Educational Lands and Funds approving the same and requesting the annexation, and (3) a copy of the ordinance declaring such annexation, certified under the seal of the city. Thereupon, such annexation of such adjacent territory shall be deemed complete, and the territory included and described in the plat shall be deemed and held to be a part of the city.

The filing of such plat and proceedings in the office of the register of deeds shall constitute a dedication of the streets and alleys contained therein so long as the same shall be used for such public purposes.

The lands included in the territory so annexed shall not be subject to any taxes or special assessments so long as the same remain the property of the state, but upon sale and delivery of a deed by the state to the purchaser the lands so conveyed shall forthwith be placed upon the tax list and shall be included in the next annual assessment.

Whenever the Board of Educational Lands and Funds determines, considering all relevant factors, that it would be in the best interests of the educational trust to do so, it may subdivide and plat any tract prior to offering it for sale. Such plats shall be prepared as prescribed in section 72-259.02 and shall be filed in the office of the register of deeds and such filing shall constitute a dedication of the streets and alleys shown therein so long as the same are used for such purposes.

The Game and Parks Commission is authorized to acquire title by condemnation to not more than one section or six hundred forty acres of educational lands in any calendar year for parks, recreation areas, or wildlife management areas, or any combination of these uses. The commission shall employ the procedure set forth in sections 72-213 to 72-224 to acquire such title, except that the determination of the value of the lands to be acquired shall be in the manner provided by section 72-224.03 and the value of any leasehold interests to be acquired shall be determined as provided by section 72-224.02. The Governor shall approve all such acquisitions as provided in section 37-303.

The State of Nebraska hereby adopts the Dixon and Alt survey of the school lands included in the survey made in accordance with the special Act of Congress entitled, An act providing for the resurvey of Grant and Hooker Counties in the State of Nebraska, approved August 9, 1894, as the true and correct survey of the school lands belonging to the State of Nebraska included in that survey, and hereby adopts the lines, corners and monuments made under the above special Act of Congress for Grant and Hooker Counties, Nebraska, as the true, correct and legal boundary lines of the school lands included in that survey.

The resurvey made by the United States Government of school sections sixteen and thirty-six, in townships twenty-one, twenty-two and twenty-three north, of range forty-seven, west of the sixth principal meridian, in Morrill County, Nebraska, and known as tracts numbers sixty-three and sixty-four in township twenty-one; tracts numbers sixty-five and sixty-six in township twenty-two, and tracts numbers seventy-eight and seventy-nine in township twenty-three, which surveys have been approved by the Commissioner of the General Land Office, are accepted and adopted as the true and correct lines, corners, monuments and boundaries of such school sections.

The state Board of Educational Lands and Funds may sell, at either public or private sale, and convert into money, articles of personal property acquired by the common school fund through bequest, gift, escheat or forfeiture to the State of Nebraska.

The northeast quarter of the southeast quarter of section 31, township 34, north, range 27, west of the sixth principal meridian; section 32 and lots 1 and 2, and the west half of the southeast quarter of section 33, and the west half of section 33, township 34, north, range 27, west of the sixth principal meridian; all in Cherry County, Nebraska, title to which is vested in the State of Nebraska, shall be leased by the Board of Educational Lands and Funds in the same manner as is provided for the leasing of the common school lands of the state; Provided, that the northeast quarter of the southeast quarter of section 31, township 34, north, range 27, west of the sixth principal meridian, Cherry County, Nebraska, together with all improvements thereon, may be sold by the board at public auction, as provided by section 72-258, and may be subdivided for the purpose of sale in such manner as the board may determine.

The Board of Educational Lands and Funds shall place all money received for rental of the land, described in section 72-267, in the temporary school fund and all money received from the sale of the land, authorized to be sold by section 72-267, in the permanent school fund. All money now in the hands of the State Treasurer, received heretofore for the rental of such lands, shall be transferred to the temporary school fund.

The Board of Educational Lands and Funds is authorized and directed to sell section thirty-six, township thirty-two north, range forty-nine, west of the sixth principal meridian, Dawes County, Nebraska, reserving mineral, oil, and gas rights, to the Game and Parks Commission on payment of forty thousand dollars. All mineral extraction and exploration on such land shall be conducted in a manner approved by both the Board of Educational Lands and Funds and the Game and Parks Commission.