(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Appropriation year--The year for which legal authorization for the charge was granted by the legislature. Multiple appropriation year activity may occur within a single fiscal year.

(2) Comptroller--The Comptroller of Public Accounts for the State of Texas.

(3) Fiscal year--The accounting period for the state government which begins on September 1 and ends on August 31.

(4) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.

(5) May not--A prohibition. The term does not mean "might not" or its equivalents.

(6) Payee--A person to whom a payment is made payable. A payee may include an individual, a corporation, an organization, a government or governmental subdivision or agency, a business trust, an estate, a trust, a partnership, an association, and any other legal entity.

(7) Payment cancellation voucher--The form prescribed by the comptroller that a state agency completes when requesting cancellation of a warrant by the comptroller.

(8) Replacement payment--A payment issued to replace an original warrant, either by issuing a replacement warrant or initiating an electronic funds transfer.

(9) State agency-- (A) a board, commission, department, or other agency in the executive branch of state government that is created by the constitution or a statute of this state, including the comptroller of public accounts and an institution of higher education as defined by Education Code, §61.003, other than a public junior college; (B) the legislature or a legislative agency; or (C) the supreme court, the court of criminal appeals, a court of appeals, or a state judicial agency.

(10) Statewide accounting system--Includes the Uniform Statewide Accounting System, the Uniform Statewide Payroll/Personnel System, the Statewide Payroll/Personnel Reporting System and the Centralized Accounting and Payroll/Personnel System.

(11) Warrant--A state payment in the form of paper issued to a payee by or on behalf of a state agency.

(b) Request for issuance. The payee of an original warrant may request issuance of a replacement payment. The request must be directed to the state agency that initiated the original warrant and must be accompanied by any statements or documentation required by the agency.

(c) Issuance by comptroller. The comptroller may issue a replacement payment only if:

(1) the state agency that initiated the original warrant provides to the comptroller proper notification that: (A) the agency has received a request for issuance of a replacement payment from the payee of the original warrant; (B) the replacement payment would replace an original warrant previously issued by the agency; and (C) the agency has determined that: (i) the original warrant was lost, destroyed, or stolen; (ii) the payee did not receive the original warrant; or (iii) the payee's endorsement on the original warrant was forged; and

(2) subsection (f) of this section does not prohibit issuance of the replacement payment.

(d) Issuance by other agency. A state agency other than the comptroller may issue a replacement payment only if:

(1) the comptroller has delegated to the agency the authority to print and deliver warrants under Government Code, §403.060;

(2) the replacement payment would replace an original warrant previously issued by the agency;

(3) the agency has determined that: (A) the original warrant was lost, destroyed, or stolen; (B) the payee did not receive the original warrant; or (C) the payee's endorsement on the original warrant was forged; and

(4) subsection (f) of this section does not prohibit issuance of the replacement payment.

(e) Notification.

(1) For all warrants except financial assistance warrants governed by Human Resources Code, §31.038 and back pay award warrants governed by Labor Code, Chapter 210, Subchapter B, notification to the comptroller under subsection (c)(1) of this section is proper only if the agency: (A) submits the information directly to the comptroller's Web cancellation system in accordance with the comptroller's requirements, if the agency's documentation is retained in the agency's files for audit by the comptroller; or (B) complies with the comptroller's requirement to submit a payment cancellation voucher to the comptroller for cancellation of warrants that are not eligible to be canceled on the comptroller's Web cancellation system. (i) The agency must complete and submit the payment cancellation voucher to the comptroller. (ii) The agency may substitute the comptroller's payment cancellation voucher with an agency payment cancellation voucher only upon approval by the comptroller.

(2) For financial assistance warrants governed by Human Resources Code, §31.038 and back pay award warrants governed by Labor Code, Chapter 210, Subchapter B, notification to the comptroller under subsection (c)(1) of this section is proper only if the agency completes and submits the appropriate documentation to the comptroller.

(3) After a warrant is canceled, the state agency that requested its cancellation may request issuance of a replacement payment in accordance with the procedures adopted by the comptroller. The request for a replacement payment must be submitted to the appropriate statewide accounting system.

(f) Prohibition on issuance. A replacement payment may not be issued if:

(1) the original warrant has been paid, unless a refund of the payment has been obtained by the state;

(2) the period during which the comptroller may pay the original warrant has expired under Government Code, §404.046, or other applicable law;

(3) the payee of the replacement payment is not the same as the payee of the original warrant; or

(4) state or federal law prohibits the issuance of a payment to the payee of the replacement payment.

(g) Limitations and exceptions.

(1) A replacement warrant must reflect the same appropriation year as the original warrant and may not be paid unless presented to the comptroller or a financial institution before the expiration of two years after the close of the fiscal year in which the original warrant was issued.

(2) Except as provided by paragraph (1) of this subsection, a replacement payment for a federal guaranteed student loan identified by the Texas Higher Education Coordinating Board must be issued within 120 calendar days from its original date of issuance and may not be paid unless presented to the comptroller or a financial institution before its expiration date.

(3) Except as provided by this paragraph, the Texas Workforce Commission shall comply with this section when issuing a replacement payment. The deadline for issuance of the replacement payment is the deadline specified in Labor Code, Chapter 210, Subchapter B.

(4) A replacement payment issued to replace a state employee payroll warrant may not be issued by initiating an electronic funds transfer. Such replacement payment may be issued only in the form of a replacement warrant.

(5) The state agency that issues a replacement payment under subsection (c) or (d) of this section is authorized to determine whether the replacement payment is issued in the form of a replacement warrant or an electronic funds transfer. The state agency must follow the appropriate comptroller procedures for issuing a replacement payment.

Source Note: The provisions of this §5.140 adopted to be effective February 14, 1997, 22 TexReg 1329; amended to be effective February 15, 1999, 24 TexReg 993; amended to be effective November 20, 2008, 33 TexReg 9270; amended to be effective March 11, 2013, 38 TexReg 1695; amended to be effective July 12, 2018, 43 TexReg 4559