Could a Louisiana school board build an industrial park on sixteenth-section school land?

Plain-English summary

East Feliciana Parish School Board asked whether it could develop an industrial park on a sixteenth-section school-land tract using an economic-development grant. In 2005, the Attorney General concluded the school board could not itself develop the park. The office relied on the special statutory treatment of sixteenth-section land and earlier AG opinions that school boards lacked authority to participate in economic development.

The opinion distinguished a limited lease route. Under the statutes it discussed, the school board could lease such land to another governmental body, including through a parish or municipal industry-development board with state approval. Sale of sixteenth-section land had its own requirement: a vote by residents of the township where the land lay. The AG did not treat those routes as authority for the board's proposed direct industrial-park development.

The source's running headers on pages 2 through 4 say “OPINION NO. 04-0257,” but its opening and final syllabus identify the document as 05-0148. This record follows the opening and syllabus and preserves the inconsistent headers in the original text.

Currency note

This opinion was issued in 2005. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could the school board build the industrial park itself?

The AG said no. It found the school board's proposed direct economic-development project outside the authority it had over sixteenth-section land.

Could the land be leased for an industry-related project?

The opinion described a limited indirect route under La. R.S. 41:640 and La. R.S. 41:981: leasing to a parish or municipality through a qualifying industry-development board, subject to Louisiana Board of Commerce and Industry approval.

Was a sale of sixteenth-section land handled like ordinary surplus school property?

No. The AG said LSA-R.S. 41:711 and 41:712 required a favorable township-resident vote before sale, unlike ordinary school property that might be sold through bidding when no longer needed.

Did the Louisiana Supreme Court decide the school-board economic-development question?

The opinion said the Supreme Court reversed a lower-court decision that had allowed narrow school-board participation, but did not base its reversal on the economic-development issue. The AG still concluded that the proposed direct project was unauthorized.

Background and statutory framework

Sixteenth-section land was held by Louisiana in its sovereign capacity for public-school purposes. The AG reviewed leasing under La. R.S. 41:640 and La. R.S. 41:981, sale under LSA-R.S. 41:711 and 41:712, and prior opinions on school-board economic-development authority. It separated the permitted lease mechanism from direct school-board development of an industrial park.

Citations

• La. R.S. 41:640 (sixteenth-section leases).
• La. R.S. 41:981 (indirect lease route).
• LSA-R.S. 41:711 and 41:712 (sale procedures).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/05-0148

Original opinion text

April 20, 2005
OPINION NO. 05-0148
La. R.S. 41:640
La. R.S. 41:711 & 712
La. R.S. 41:981
La. R.S. 47:8001 through 47:8027
La. R.S. 51:2302
Michael L. Hughes, Esq.
La. Atty. Gen. Op. Nos. 97-408 & 03-0345
P.O. Box 1247
St. Francisville, LA 70775
The East Feliciana Parish School Board
may not develop an industrial park on a sixteenth section tract in the parish. It has been opined in previous La. Attorney
General Opinions that school boards may not participate in economic development.
Dear Mr. Hughes: Recent cases are consistent with this
position.

This office is in receipt of your opinion request in which you inquire as to whether the East Feliciana Parish School Board may develop an industrial park on a sixteenth section tract with funding obtained through an economic development grant.

The law provides that Parish School Boards may lease sixteenth section lands granted by Congress for public school purposes under limited conditions as set out in LSA-R.S. 41:640 (C) which reads:

The parish school boards of parishes within which there lies a township containing sixteenth section or any portion of a sixteenth section shall have the authority to lease, contract, or both, with any other governmental agency or department for the use of sixteenth section lands within the boundaries of their respective parishes.
The proceeds and revenues thereof shall be credited to the parish school boards in which such townships are situated in proportion to the percentage of the sixteenth section lands lying in each parish.

LSA-R.S. 41:981 does allow indirect economic development of sixteenth section land by establishing a procedure under which sixteenth section land may be leased under LSA-R.S. 41:640 (C) “to a parish or municipality through a corporate industry development board organized under the provisions of Chapter 7 of Title 51 of the Louisiana Revised Statutes of 1950, as an instrumentality of the parish or municipality, subject to approval of such lease by the Louisiana Board of Commerce and Industry”.

Therefore, it is permissible for the East Feliciana Parish School Board to lease a sixteenth section tract in that parish under these limited conditions.

Page 2

OPINION NO. 04-0257
Michael Hughes, Esq.
First Assistant District Attorney
Twentieth Judicial District
Page No. 2

Further LSA-R.S. 41:711 and 41:712 provide for the sale of sixteenth section land. However, this may only be done after a vote in favor of the sale by the residents of the township in which the sixteenth section is located. This is in contrast to the sale of other school property which may be sold, if no longer needed for school purposes, using the appropriate public bid procedure.

It should also be noted that sixteenth section lands are not titled in the name of the school board, but rather in the name of the State of Louisiana in its sovereign capacity. Proceeds from any sale of sixteenth section lands are not deposited with a school board but rather are deposited in the state account where interest from the account goes to the school board.

In short, sixteenth section land is unique, even as school property, and its use and sale has been extremely limited and protected by the various applicable state statutes.

The Attorney General’s office has previously opined in La. Atty. Gen. Opinions 97-408 and 03-0345 that “the school board is not authorized or obligated to engage in economic development.” Further evidence of this prohibition is presented in La. R.S. 47:8001 through 48:8027, known as the Tax Increment Development Act, which specifically excludes school boards and school districts from the application of the Act.

The one contradictory authority is given in Denham Springs Economic Development District vs. All Taxpayers, Property Owners, et al., No. 885 So.2d 1153, 2004-1013 (La. App. 1 Cir. 6/4/04) in which the First Circuit allowed school board participation in economic development; however, the participation was “narrowly drawn to the particular facts and circumstances of this case”. Id. at 1165. However, the Supreme Court, in de novo exanimation, reversed the First Circuit’s decision in cause number 2004-C-1674 rendered by the Supreme Court on February 4, 2005, opinion by Justice Traylor, but did not base its decision on the economic development issue.

In conclusion, the East Feliciana Parish School Board may not develop an industrial park on a sixteenth section tract in the parish. It has been opined in previous La. Attorney General Opinions that school boards may not participate in economic development. Recent cases are consistent with this position.

Page 3

OPINION NO. 04-0257
Michael Hughes, Esq.
First Assistant District Attorney
Twentieth Judicial District
Page No. 3

We hope this sufficiently answers your inquiries, however if we may be of further assistance please do not hesitate to contact our office.

Sincerely yours,

CHARLES C. FOTI, JR.
ATTORNEY GENERAL

BY:
CHARLES F. PERRY
Assistant Attorney General

CCF,Jr./CFP/tp

Page 4

OPINION NO. 04-0257
Michael Hughes, Esq.
First Assistant District Attorney
Twentieth Judicial District
Page No. 4

OPINION NO. 05-0148

90-A-2 PUBLIC FUNDS
90-B-2 LEASES
97
SCHOOLS & SCHOOL DISTRICTS

La. R.S. 41:640
La. R.S. 41:711 & 712
La. R.S. 41:981
La. R.S. 47:8001 through 47:8027
La. R.S. 51:2302
La. Atty. Gen. Op. Nos. 97-408 & 03-0345

The East Feliciana Parish School Board may not develop an industrial park on a sixteenth section tract in the parish. It has been opined in previous La. Attorney General Opinions that school boards may not participate in economic development. Recent cases are consistent with this position.

DATE REQUESTED: August 6, 2004

DATE RELEASED: April 20, 2005

REQUESTED BY: Michael L. Hughes, Esq.
Post Office Box 1247
St. Francisville, LA 70775

AUTHOR: CHARLES F. PERRY
Assistant Attorney General
Lands & Natural Resources Section