Lesson 1: The Basics of Warrant Hold

Warrant Hold Statutes, Policies and Procedures

Texas Government Code, Section 403.055 requires that state agencies and institutions of higher education (agencies) report to the Texas Comptroller of Public Accounts (Comptroller’s office) the names of individuals and entities with a debt to the state. This process is called warrant hold.

When an agency issues a payment through the Comptroller’s office to a payee who is on hold due to a state debt, a warrant is printed and held at the Comptroller’s office.

Texas Government Code, Section 403.0551 , authorizes the Comptroller’s office the authority to offset held warrants against state debts. TexPayment Resource provides guidance on complying with the warrant hold requirements outlined in Reporting of State Debts and Hold Offset Procedures(APS 028) (FPP E.037) .

To begin the warrant hold process, an agency must first be established as a hold source agency for each type of debt it will report. Once established, the agency reports its debtors to TINS where it can:

• Set up hold records.
• Update hold records.
• Release hold records.

Next: Payee Versus Debtor