State Payee Payment Resources

Payments on Hold

Government Code, Section 403.055 is the law that prohibits the state from making payments if the payee owes a debt to the state or is delinquent on state taxes, child support or other state debts. This law requires agencies to report to the Comptroller’s office each outstanding state debt. Reporting these debts enables the Comptroller’s office to hold state payments as required by law.

When a payee is reported as having a state debt, the Comptroller’s office will prepare and print a warrant, referred to as a held warrant. The warrant will be retained until the payee pays what is owed or authorization to release the warrant is provided by the agency that reported the debt. Under certain circumstances, the law also authorizes the Comptroller to apply state payments against what is owed, referred to as an offset.

When a held warrant is issued to a state debtor, the Comptroller’s office mails the payee a Notice of State Payment(s) Held (notice). This notice advises the payee to contact the agency that reported the state debt to make payment arrangements.

The notice also states that the payment will be applied to the liability owed 30 days after the issue date on the notice if the debt is not paid or the agency that reported the debt does not request the payment be released.

A Voluntary Offset form is provided on the back of the notice. Payees who wish to voluntarily apply their held payment to their state debt before the 30 days must sign the completed form and submit it to the Comptroller’s office as instructed on the form.