Section 1 - Introduction to Holds
Overview of Procedures
All state agencies and institutions of higher education are required to notify the Comptroller’s office of every person or debtor with an outstanding state debt (indebtedness, tax delinquency, or student loan default). Reporting these debts enables the Comptroller to hold state payments issued to these individuals or entities in accordance with Texas Government Code, Section 403.055. (Junior colleges are excluded from this requirement.)
This Fiscal Policy and Procedure (FPP) provides guidance on how to comply with the requirements of the Warrant Hold program, as outlined in Reporting of State Debts and Hold Offset Procedures (APS 028).
To begin this process, an agency must be established with the Comptroller’s office as a hold source agency for each type of debt it will report. Once established, the agency will report its debtors to the Texas Identification Number System (TINS) in order to:
- Set up hold records
- Update hold liability amounts
- Update a debtor’s name
- Update address information for debtors on hold
- Delete hold records
When an agency issues a payment to an individual or business entity who has been placed on hold in TINS, a warrant will be generated and held in the Comptroller’s office. Information about the held payment is printed on agency reports and recorded in TINS and a Notice of State Payment(s) Held is mailed to the payee. This letter advises the payee that the payment has been held by the Comptroller’s office due to their debt to the state of Texas. Payees are advised upon receipt of this letter to contact the agency or university to whom their debt is owed. The letter also notifies the payee that the held warrant will be offset (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
- The warrant is not released at the request of the hold source agency
For guidelines on payments issued from funds held in the Treasury, see Verifying Vendor Hold Status (FPP K.012) on FMX.