The Attorney General of Texas
July 2, 1982
MARK WHITE
Attorney General
Honorable Henry Wade Opinion No. MW-481
Supreme Court Building
Criminal District Attorney
P. 0. BOX 12546
Austin. TX. 76711. 2540
601 Elm Street Re: Disposition of interest
51214752501 Dallas, Texas 75202 on Law Enforcement Officer
Telex 91Oi674.1367 Standards and Education Funds
Telecopier 5121475.0266 and Criminal Justice Planning
Funds
1607 Main St., Suite 1400
Dallas. TX. 75201-4709 Dear Mr. Wade:
2141742-8944
You present the following questions in your request for an
Attorney General Opinion:
4624 Alberta Ave.. Suite 160
El Paso, TX. 79905-2793
9151533-3464 1. If Criminal Justice Planning Funds and/or
Law Enforcement Officer Standards and Education
Funds in the Dallas County No. 532 Escrow Fund are
1220 Dallas Ave.. Suite 202
“ouston, TX. 77002.6986
placed for investment while in the custody of
7131650-0666 Dallas County, does the interest earned on the
funds belong to the state of Texas or Dallas
County?
806 Broadway. Suite 312
Lubbock. TX. 79401.3479
2. If the interest does belong to the state
6061747-5238
of Texas and is added to the amount of total funds
to be reported and sent to the state of Texas at
4309 N. Tenth, Suite S the end of each calendar quarter, may Dallas
McAHen, TX. 76501~1665 County use this total to determine its service fee
5121662.4547
for the quarter or must the interest earned be
excluded from service fee calculations?
200 Main Plaza. Suite 400
San Antonio. TX. 78205.2797 The Law Enforcement Officer Standards and Education Fund and the
512/225.4191 Criminal Justice Planning Fund are special funds required to be
collected as court costs by article 4413(29aa), section 9B, V.T.C.S..
An Equal OpportunityI and article 1083 of the Code of Criminal Procedure, respectively.
Affirmative Action Employer
Custodians of the municipal and county treasuries are required to
keep separate records of the amount of these funds on deposit. The
funds are to be remitted to the comptroller of public accounts
quarterly; however, the municipal and county treasuries are
specifically authorized to retain ten percent (10X) of the collected
funds as a service fee for such collection.
Interest held in trust by a county for another party is an
increment that accrues to the owner. Sellers v. Harris County, 483
p. 1698
!
-.
Honorable Henry Wade - Page 2 (MW-481)
S.W.2d 242 (Tex. 1972). See also Attorney General Opinions M-468
(1969) ; C-610 (1966).
In Lawson v. Baker, 220 S.W. 260, 272 (Tex. Civ. App. - Austin
1920, writ ref’d), the court stated that:
Interest, according to all the authorities, is an
accretion to the principal fund earning it, and,
unless lawfully separated therefrom, becomes a
part thereof. We think it is clear that the
interest earned by deposit of special funds is an
increment that accrues to such special fund....
(Emphasis added).
Additionally, Attorney General Opinion MW-47 (1979) held that all
interest earned by that portion of the fees collected by a county
official that are to be paid to the state becomes part of the special
fund and cannot be retained by the county.
Thus, the state of Texas is the owner of the special funds
collected and is entitled to the accrued interest thereon. However,
the county may exercise the right, as specifically authorized by law,
to retain ten percent (10%) of the special funds collected as a
service fee.
In answer to your second question, both statutes provide that
municipal or county treasuries may retain ten percent of the funds
collected as service fees. As owner of the ten percent service fee,
the county is entitled to interest on that ten percent of the fund.
See Attorney General Opinion MW-47 (1979).
SUMMARY
Interest earned by that portion of Criminal
Justice Planning Funds and/or Law Enforcement
Officer Standards and Education Funds not retained
as a service fee as authorized by law, which is
placed for investment while in custody of a
county, becomes a part of these special funds and
cannot be retained by the county. The county is
entitled to retain interest earned on its service
fee.
Very truly yours, /7
MARK WHITE
Attorney General of Texas
p. 1699
i
(MW-481)
L
Honorable Henry Wade - Page 3
JOHN W. FAINTER, JR.
First Assistant Attorney General
RICHARD E. GRAY III
Executive Assistant Attorney General
Prepared by Monroe Clayton
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Susan L. Garrison, Chairman
Jon Bible
Monroe Clayton
Rick Gilpin
Patricia Hinojosa
Jim Moellinger
Bruce Youngblood
p. 1700