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TexPayment Resource

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Introduction to Payment Processing Policy
Warrants

A state check is called a warrant because the state treasury guarantees payment. The Comptroller’s office promises or warrants that funds will be available when the warrant is presented for payment.

In Texas Government Code, Section 403.060, the Texas Legislature authorized the Comptroller’s office to print warrants from state treasury funds on behalf of all state agencies and institutions of higher education.

The Payment Services section in the Fiscal Management Division oversees the printing, sorting and distribution of warrants. Except for Payment Distribution, warrants issued from the nightly business cycle are available by 8 a.m. the next day. Agencies are responsible for the distribution of warrants to their payees.

Note: See warrant hold requirements in Warrant Hold.

Expiration

According to Texas Government Code, Section 404.046, state warrants become void on Aug. 31 two fiscal years after the fiscal year they were issued with two exceptions:

  • Certain loan warrants issued by the Texas Higher Education Coordinating Board become void 120 days from the date they are issued.
  • The void date for unemployment insurance compensation warrants issued by the Texas Workforce Commission is 12 months from the issue date.

Special Handling

Two categories of warrants require special handling:

  • Warrants to be approved and wire transferred by the Cash and Securities Management section of the Comptroller’s Treasury Operations Division.

    Note: Email funds.transfer@cpa.texas.gov for wire transfers.

  • Warrants issued by any agency for settlements and judgment claims to be distributed to the Office of the Attorney General.

To request special handling, agencies enter the appropriate payment distribution type (PDT) in the PDT field in USAS during transaction entry.

See Warrant Sort Keys and Distribution in USAS Reference for the complete listing.

Warrant Cancellation

If a warrant must be canceled, the paying agency must cancel any warrant it issued. See Treasury Operations’ Web Warrant Inquiry and Cancellation System.

If a warrant is lost in the mail, the payee should contact the paying agency so that agency can cancel the lost warrant and issue a replacement warrant according to Texas Government Code, Section 403.054.