General Provisions — Statutory Authority of the Comptroller
Warrant Retention
The Comptroller’s office may prepare and retain a warrant that may not be distributed to a person who is indebted to the state.
The Comptroller’s office may deduct the amount of a person’s indebtedness to the state or tax delinquency from an amount the state owes the person or the person’s successor.
Example
Paul provided contract delivery services for a state agency. He billed the agency for his services and the agency initiated a payment. However, Paul was indebted to the state for outstanding student loans.
Paul may choose to settle his debt to the state prior to receiving his payment or he may have the payment issued by the state applied to his debt.
Sources [+]
Texas Government Code Section 403.0551, 403.0552.