Lesson 1: The Basics

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 entities with a debt to the state.

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

Texas Government Code, Section 403.0551, gives the Comptroller’s office the authority to offset held warrants for state debts owed by the payee. The TexPayment Resource provides guidance on complying with the Warrant Hold program requirements that are outlined in Reporting of State Debts and Hold Offset Procedures(APS 028) (FPP E.037).

Note: The offset process is covered in depth in Lesson 6.

To begin the hold process, an agency must first be established as a hold source agency with the Comptroller’s office for each type of debt it will report. Once established, the agency reports its debtors to the Texas Identification Number System (TINS) where it can:

• Set up hold records
• Update hold records
• Update debtor name and address information
• Delete hold records

Next: Direct Deposit and Warrants