Lesson 1: The Basics

State Agency Responsibilities – Becoming a Hold Source Agency

Prerequisites

Before a state agency can place a hold in TINS they must:

• Be designated a hold source agency by the Comptroller's office
• Support the debt with a legal reason or statutory citation
• Be assigned a hold reason code for that debt by the Comptroller's office

Notifying the Comptroller's office

All state agencies are required to notify the Comptroller’s office of every individual or other entity with an outstanding state debt (indebtedness, tax delinquency or student loan default). Reporting these debts enables the Comptroller’s office to hold state payments issued to these individuals or other entities in accordance with Texas Government Code, Section 403.055.

Note: Junior colleges/community colleges are excluded from this requirement.

Reporting an individual or other entity

A state agency may not report an individual or other entity unless the agency first provides an opportunity for them to exercise any due process or other constitutional or statutory protection that must be accommodated before the agency or state may begin a collection action or procedure in accordance with Texas Government Code, Section 403.055.

Next: Application to Report Indebtedness