Hold Special Circumstances
Local Funds

State agencies and institutions of higher education (agencies) are required to follow the warrant hold statute, Texas Government Code, Section 2107.008, when issuing payments from local funds (funds held outside the state treasury).

Payment Prohibited

Agencies are required to verify a payee’s hold status before issuing payments from local funds. If the payee is on hold, agencies must not use local funds to issue a payment unless the hold source agency or agencies consent to the release of the payment. The consent must be:

• In writing.
• Obtained on a payment-by-payment basis while the payee remains on hold.
• Retained for audit purposes.

Payments made through the Uniform Statewide Accounting System (USAS) with appropriated funds are automatically checked for holds.

Verifying Holds Using TINS

TINS is the system of record for verifying vendor hold status to determine if a person is prohibited from receiving state payments from either state or local funds.

• Use the online inquiry screen Payee Hold Information (PYHOLD) by entering the payee’s TIN. If you do not have security access to TINS to verify vendor holds, contact your agency’s security coordinator. If PYHOLD displays a hold record for the TIN entered, access the Agency Hold Reason Inquiry (RSNINQ) screen.
  • Enter the three-digit hold source agency number in the SRC field and the three-digit hold reason code in the RSN field displayed on PYHOLD.
  • Refer the debtor to the hold agency’s contact information displayed on RSNINQ for questions and payment options.
• Download the daily Debtor Hold Extract File. Use the payee’s TIN to search for hold records. If a hold record is found on the file:
  • Obtain the three-digit hold source agency number in the HOLD SOURCE field and the three-digit hold reason code in the HOLD REASON field for that hold record.
  • Use RSNINQ to refer the debtor to the hold agency’s contact information for questions and payment options.

Holding Payments

Each agency must establish its own policies and procedures when issuing payments to debtors from local funds.

Agencies that are physically holding payments issued from local funds may want to research whether the payments are eligible to be processed through USAS. If eligible, once processed in USAS, the payments would be held and offset toward the state debts.

Reimbursement Payments

The Comptroller may not reimburse an agency for payments issued from local funds to a payee on hold.

• The agency is responsible for preventing these payments.
• Any such payments could constitute an audit finding against the paying agency.