The control and jurisdiction of the Sixteenth Section Public School Trust Lands is vested in the local Boards of Education under the general supervision of the Secretary of State.  The leasing of Sixteenth Section Lands is based on a system of land classification.  The classifications are: Agriculture, Catfish-Farming, Commercial, Farm-Residential, Forestry(hunting/fishing), Industrial, Other, Recreational, and Residential.

Leases for all Sixteenth Section Lands classifications, except for agricultural leases, hunting and fishing leases on Forest Land, and oil, gas and mineral leases, are let by application to the local Superintendent of Education and upon approval of the Board of Education.  Annual rent for leases granted upon application is set at the fair market rental of the land, excluding buildings and improvements not owned by the school district.  The law specifically requires an appraisal be done prior to the granting of such a lease.  The maximum lease term for all land classifications leased upon application is 40 years.  Rents must be adjusted at least once every ten years during the lease term to reflect the current fair market rental value of the land, exclusive of improvements not owned by the school district.

Hunting and fishing leases, agricultural leases, and mineral leases are offered by the local Boards of Education through a competitive bidding process

Only Forest Land may be leased for hunting and fishing.  Leases of the hunting and fishing rights on Forest Land are awarded to the highest bidder after publication of an advertisement.  If the most recent leaseholder of the hunting and fishing rights has participated in the bidding, then that lessee has, by law, the right to renew his lease by matching the highest acceptable bid received.  If no acceptable bid is received, then the Board of Education may reject all bids and either re-advertise, or within 90 days, lease by private contract for an annual rental greater than the highest bid rejected.  The maximum term allowed for a lease of hunting and fishing rights on Forest Land is fifteen years.  However, most districts have found it is in the best interest of the public school lands trust to limit hunting and fishing leases to terms of three to five years.

The maximum term for agricultural leases is ten years for rice and pasture leases and five years for all other agricultural purposes.  All agricultural leases must be made to expire on December 31^st of the final year of the lease term.

All Sixteenth Section Lands, regardless of classification, may be leased for the exploration, development, mining and production of oil, gas and minerals including: carbon dioxide and other gaseous substances; metals, compounds of metals, metal-bearing ores; coal, lignite, and their constituent components and products and minerals intermingled or associated therewith; and sulphur, salt, sand, gravel, fill dirt, and clay.

All Sixteenth Section Lands, once they are leased are subject to assessment and payment of ad valorem taxes.  The lessee is liable for the payment of the taxes, and the lease may be cancelled for failure to pay taxes.