State Payee Payment Resources
State law prohibits the state making payments if the payee owes a debt to the state or is delinquent on certain:
- Student loans
- Child support
In such cases, the Comptroller’s office will process and create a payment but will not release it to the paying agency until the payee pays what is owed. Under certain circumstances, the law also authorizes the Comptroller to apply state payments against what is owed.
When an agency has a payment to a payee who has been placed on hold, the Comptroller’s office mails a Notice of State Payment(s) Held to the payee. This letter advises the payee to contact the agency or university to whom the debt is owed.
The letter also notifies the payee that the payment will be applied to the liability owed 30 days after the issue date on the Notice of State Payment(s) Held if the debt is not paid or the hold source agency does not request that the payment be released.
The Voluntary Offset form is provided on the back of the Notice of State Payment(s) Held. Payees who wish to voluntarily apply their held payment to their liability, as described in the Notice, must sign the completed form and submit it to the Comptroller’s office.
State agencies are required to notify the Comptroller’s office of every outstanding state debt. Reporting these debts enables the Comptroller’s office to hold state payments as required by law.
To review the law, see Texas Government Code, Section 403.055.