us-tx/regs
34 Tex. Admin. Code § 5.400 — Printing and Issuance of Warrants
(a)
Applicability. This rule governs the comptroller's delegation of the authority to print and issue warrants under Government Code, §403.060(a).
(b)
Definitions. The following words and terms, when used in this subchapter, shall have the following meanings.
(1) Electronic Funds Transfer (EFT)--A transfer of funds which is initiated by the participating state agency as originator to the originating depository financial institution to order, instruct, or authorize a receiving depository financial institution to perform a credit entry, reversal, or reclamation. An EFT may include a pay card. For purposes of this rule, an EFT does not include a transaction originated by wire transfer, check, draft, warrant, or other paper instrument.
(2) MOU--Memorandum of Understanding.
(3) National Automated Clearing House Association (NACHA)--The electronic payments association that establishes standards, rules, and procedures that enable domestic financial institutions to exchange payments electronically.
(4) Participating state agency--A state agency that has requested and received from the comptroller the delegated authority to print and issue warrants.
(5) Pay card--A payment card issued to a state payee that provides access to state funds as authorized by a state agency.
(6) Payment method--A warrant or an EFT payment.
(7) Regulation E--The regulations adopted by the Board of Governors of the Federal Reserve System at 12 C.F.R. Part 205, as they may be amended, to implement the Electronic Fund Transfer Act (15 U.S.C. §1693 et seq. ).
(8) State agency--
(A) a department, commission, board, office, or other agency in the executive or legislative branch of state government that is created by the constitution or a statute of this state, including the comptroller of public accounts;
(B) the supreme court of Texas, the court of criminal appeals, a court of appeals, or a state judicial agency; or
(C) a university system or an institution of higher education as defined by Education Code, §61.003, other than a public junior college.
(9) State payee--A person to whom a state payment is issued, including an individual, state employee, annuitant, business, vendor, governmental entity, or other legal recipient paid by the state of Texas.
(10) Warrant--A state payment in the form of a paper instrument which is subject to applicable state law, is drawn on the state of Texas treasury funds, and is payable to a state payee on behalf of a state agency by the comptroller or a state agency with delegated authority to print and issue warrants under Government Code, §403.060(a). A warrant is not an approved means of EFT.
(c)
Delegating the printing and issuance of warrants to a state agency. The head of a state agency must submit a written request to the comptroller's office to obtain delegated authority to print and issue warrants. The request must:
(1) identify the type of payments the agency is requesting to print and issue warrants for;
(2) identify the payment method the agency intends to use; and
(3) state the duration requested for the delegation authority.
(d)
If the request is approved by the comptroller's office, the participating state agency shall agree to the following:
(1) the participating state agency agrees to bear all of its own costs and expenses in relation to the printing and distribution of warrants and/or EFT payments; and
(2) must agree to a MOU that includes, but is not limited to:
(A) general duties and responsibilities of the participating state agency;
(B) warrant design requirements and specifications;
(C) security and audit of warrants and/or EFT payments;
(D) recording of warrants and/or EFT payments issued by the participating state agency;
(E) cancellation of warrants and/or EFT payments issued by the participating state agency;
(F) replacement of warrants and/or EFT payments issued by the participating state agency;
(G) contingency planning for printing and issuance of warrants and/or EFT payments; and
(H) EFT payments.
(e)
EFT payments.
(1) A participating state agency that is delegated authority by the comptroller to print and issue warrants may instead make payments through the EFT system, including the issuance of a pay card, as provided by Government Code, §403.016(g).
(2) A participating state agency that makes payments through the EFT system shall comply with Regulation E and all NACHA rules and regulations.
Source Note: The provisions of this §5.400 adopted to be effective August 23, 2018, 43 TexReg 5388; amended to be effective November 14, 2022, 47 TexReg 7559.
Source: official text