Lets pray and fight for a new year which returns our royalties and bonuses back every rightful heir.
PART 2 of A WHITE PAPER GUIDE TO HB724
SUPPLEMENT #1 #whitepaperhb724
DATED MAY 19, 2014
UNCLAIMED MINERAL PROCEEDS COMMISSION IN ITS HISTORICAL MISSION
March 21, 2014/April 25, 2014
BY MR. GEORGE FARIAS
TOPIC: DEPOSITS OF MINERALS FROM UNCLAIMED WELLS.
My complaint on April 25, 2014 about deposits into the Texas General Revenue Fund of
minerals from unclaimed wells, appropriated for state expenditures, was not to imply any
malfeasance on the part of the state. I realized after my presentation that Mr. Jim Sheer
confirmed that these monies were being appropriated for expenditures but a reserve is set
aside for timely payment of claims. I am sure all descendants have no complains that the
money is being used for education, infrastructure, for fighting crime etc.
Our concern is the manner in which it is done and the lack of transparency. My recommendation
is, initially, a simple accounting and fiduciary procedure. After deposit into the Texas General
Revenue Fund the money can be transferred to a trust fund to be managed by the Comptroller’s
Unclaimed Property Division separate and apart from the other property described. I understand
the state is entitled to the interest earned from the trust. The interest can be used to hire additional
staff to supervise the fund, and for other administrative costs, as it grows and as claims are
processed and disbursed. This fund can be visible to the public in the same fashion as the other
types of unclaimed property.
I believe the fund will increase dramatically. Assume, for example that it reaches three
billion dollars and the is facing a budget shortfall of 2 billion. It does not make sense to ignore
this resource. By legislative action the funds can be borrowed to balance the budget. The balance
sheet of the fund will now show one billion dollars in cash and investments and a 2 billion dollar
loan to the state. Of course, in directly appropriating the funds, the state loses the interest earnings
but I understand this is a tradeoff. With a little patience the state can earn interest and utilize legally
any available trust funds. The loan can be interest free.
In this transparent method everyone benefits and the use of the funds are maximized.
I hope the HB724 commission will consider this recommendation and include it in their final report.
Author George Farías blogged and used by permission Please note: these are Mr. Farias' personal presentations to the HB724 commission as a descendant/heir and do not reflect the opinions of anyone else. They are a matter of public record.
Photo Credit: Source: the Voice of Change Network Copyright 2014 All Rights Reserved
Please stay tuned for the part 3 of this white paper or see the tag #whitepaperhb724 for all articles in this series