# TheAttorney GeneralofTexas July 2, 1982 MARK WHITE Attorney General

Supreme Court Building P.0. BOX12546 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 ElPaso, 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

200Main Plaza. Suite 400 San Antonio. TX. 78205.2797 512/225.4191

An Equal OpportunityI Affirmative Action Employer Honorable HenryWade Criminal District Attorney 601ElmStreet Dallas, Texas 75202 Opinion No. MW-481 Re: Disposition of interest on Law Enforcement Officer Standards and Education Funds and Criminal Justice Planning Funds DearMr.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 theDallas County No. 532Escrow Fundare 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 andis added to the amountof 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? TheLawEnforcement Officer Standards andEducation Fundandthe Criminal Justice Planning Fund are special funds required to be collected as court costs byarticle 4413(29aa), section 9B, V.T.C.S.. andarticle 1083of the Codeof Criminal Procedure, respectively. Custodians of themunicipal andcounty 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 asaservice 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

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-. Honorable HenryWade- 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 tobepaid to the state becomes part of the special fund andcannot be retained bythe 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 mayexercise 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 mayretain ten percent of the funds collected as service fees. Asowner 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 andEducation Fundsnot retained as a service fee as authorized by law, which is placed for investment while in custody of a county, becomes apart 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 ofTexas

p. 1699i L Honorable HenryWade- Page 3 (MW-481)

JOHNW.FAINTER,JR. First Assistant Attorney General RICHARDE.GRAYIII Executive Assistant Attorney General Prepared byMonroe Clayton Assistant Attorney General APPROVED: OPINIONCOMMITTEE SusanL. Garrison, Chairman JonBible Monroe Clayton Rick Gilpin Patricia Hinojosa JimMoellinger Bruce Youngblood

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