Section 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(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.34 Tex. Admin. Code § 5.400
Adopted by Texas Register, Volume 43, Number 33, August 17, 2018, TexReg 5388, eff. 8/23/2018; Amended by Texas Register, Volume 47, Number 45, November 11, 2022, TexReg 7559, eff. 11/14/2022