The Attorney General of Texas 

July 2, 1982 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. BOX 12546 

Austin. TX. 76711. 2540 

51214752501 

Telex 91Oi674.1367 

Telecopier 5121475.0266 

1607 Main St., Suite 1400 

Dallas. TX. 75201-4709 

2141742-8944 

4624 Alberta Ave.. Suite 160 

El Paso, TX. 79905-2793 

9151533-3464 

1220 Dallas Ave.. Suite 202 

“ouston, TX. 77002.6986 

7131650-0666 

806 Broadway. Suite 312 

Lubbock. TX. 79401.3479 

6061747-5238 

4309 N. Tenth, Suite S 

McAHen, TX. 76501~1665 

5121662.4547 

200 Main Plaza. Suite 400 

San Antonio. TX. 78205.2797 

512/225.4191 

An Equal OpportunityI 

Affirmative Action Employer 

Honorable Henry Wade 

Criminal District Attorney 

601 Elm Street 

Dallas, Texas 75202 

Opinion No. MW-481 

Re: Disposition of interest 

on Law Enforcement Officer 

Standards and Education Funds 

and Criminal Justice Planning 

Funds 

Dear Mr. Wade: 

You present the following questions in your request for an 

Attorney General Opinion: 

1. If Criminal Justice Planning Funds and/or 

Law Enforcement Officer Standards and Education 

Funds in the Dallas County No. 532 Escrow Fund are 

placed for investment while in the custody of 

Dallas County, does the interest earned on the 

funds belong to the state of Texas or Dallas 

County? 

2. If the interest does belong to the state 

of Texas and is added to the amount of total funds 

to be reported and sent to the state of Texas at 

the end of each calendar quarter, may Dallas 

County use this total to determine its service fee 

for the quarter or must the interest earned be 

excluded from service fee calculations? 

The Law Enforcement Officer Standards and Education Fund and the 

Criminal Justice Planning Fund are special funds required to be 

collected as court costs by article 4413(29aa), section 9B, V.T.C.S.. 

and article 1083 of the Code of Criminal Procedure, respectively. 

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 

L 

Honorable Henry Wade - Page 3 (MW-481) 

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