Lesson 1: The Basics of Warrant Hold

Application to Report Indebtedness

To be designated a hold source agency, the agency must complete and submit an Application to Report Indebtedness form (74-188) to the Comptroller’s Fiscal Management Division.

Citing Appropriate Texas Statute

The agency must cite on the application the Texas statute that supports the debt as determined by the agency’s legal counsel.

Agencies must not use Texas Government Code, Sections 403.055 or 403.0551. These statutes were established to create the Comptroller’s warrant hold program and offset process, respectively. Hold source agencies cannot use these citations as they are not specific to the agency’s debt.

One Form per Type of Debt

Agencies must submit a separate form 74-188 for each type of debt they will report. The Comptroller’s legal staff reviews each application; if an application is approved, Fiscal Management assigns and sets up a three-digit hold reason code for it in TINS.

The assigned three-digit hold reason code is specific to the hold source agency based on each reason and citation provided. However, if the type of state debt applies to more than one agency, a universal hold reason code is assigned.

The hold reason code is used to:

• Identify the type of state debt.
• Set up hold records on state debtors.
• Perform vendor hold searches.
• Maintain an audit trail on the hold records for historical purposes.

If the Comptroller’s office does not approve the application, it returns the application to the agency with the reason it was not approved. The agency may revise the application and resubmit it.

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