SECTION 5.61. Approval and Certification of Certain Payment, SPRS, and USPS Documents

(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 accounting period beginning on September 1st and ending the following August 31st.

(2) Certification--A state agency's declaration to the comptroller that:

(A) the goods or services received by the agency comply with contract requirements; and

(B) the invoice received by the agency for the goods or services is correct.

(3) Chief deputy--For a state agency that is administered by an elected or appointed state official, the individual authorized by law to administer the agency during the official's absence or inability to act.

(4) Comptroller--The comptroller of public accounts for the State of Texas.

(5) Executive director--The individual who is the chief administrative officer of a state agency that is headed by a governing body. The term excludes a member of that body.

(6) Governing body--The board, commission, committee, council, or other group of individuals that is collectively authorized by law to administer a state agency.

(7) Head of agency--The elected or appointed state official who is authorized by law to administer a state agency.

(8) 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.

(9) Institution of higher education--Has the meaning assigned by Education Code, §61.003.

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

(11) Non-payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to post or correct certain accounting information in USAS. The term does not include a payment, SPRS, or USPS document.

(12) Texas identification number--The 11 digit number that the comptroller assigns to each payee of a warrant issued or electronic funds transfer initiated by the comptroller.

(13) Mail code--The three digit number associated with a Texas identification number that documents disbursement instructions.

(14) Payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to make a payment on the agency's behalf. The term includes a document that uses the appropriated or other funds of a state agency to make a payment to another state agency. The term does not include a USPS or SPRS document or a non-payment document.

(15) Payroll document--The type of payment document that the comptroller requires a state agency to submit when requesting payment of the compensation of state officers and employees or certain other types of payments. The term does not include a USPS or SPRS document.

(16) State agency--A department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes an institution of higher education.

(17) USAS--The uniform statewide accounting system.

(18) USPS--The uniform statewide payroll/personnel system.

(19) USPS document--The document that a state agency electronically submits to USPS for the purpose of requesting the comptroller to pay the compensation of state officers and employees or to make certain other types of payments. The term does not include a payment, SPRS, or non-payment document.

(20) SPRS--The standardized payroll/personnel reporting system.

(21) SPRS document--The document that a state agency electronically submits to SPRS for the purpose of requesting the comptroller to pay the compensation of state officers and employees or to make certain other types of payments. The term does not include a payment, USPS, or non-payment document.

(b) Required approval and certification of payment and USPS or SPRS documents.

(1) General Requirements. The comptroller may not make a payment on behalf of a state agency unless:

(A) the agency properly submits a payment or USPS or SPRS document to the comptroller requesting the payment;

(B) the document has been approved according to this section; and

(C) the requirements, if applicable, of paragraph (2) of this subsection have been satisfied.

(2) Certification of payment and USPS or SPRS documents. To the extent a payment, SPRS, or USPS document requests payment of anything other than the compensation of a state officer or employee, a certification concerning the document must be given to the comptroller according to this section.

(3) Multiple approvals of payment and USPS or SPRS documents.

(A) If a payment document is approved more than once, the individual who provides the last approval is responsible for the truth and accuracy of the statement in subsection (o)(2)(B) of this section.

(B) If a USPS or SPRS document is approved more than once, the individual who provides the last approval is responsible for the truth and accuracy of the statement in subsection (o)(4)(B) of this section.

(c) Combined approval and certification of payment and USPS or SPRS documents.

(1) Automatic certification. When an individual approves a payment or USPS or SPRS document, the individual automatically provides its certification if the certification is required by subsection (b)(2) of this section. An individual may not approve a payment or USPS or SPRS document without also providing its required certification.

(2) Automatic approval. When an individual provides the required certification for a payment, SPRS, or USPS document, the individual automatically approves it. An individual may not provide the required certification for a payment, SPRS, or USPS document without also approving it.

(3) References. A specific reference in subsections (e) - (q) of this section to the approval of a payment, SPRS, or USPS document is also a reference to any required certification provided for that document.

(d) Fact findings concerning the electronic approval of payment and USPS or SPRS documents.

(1) Security. The comptroller has determined that the degree of security provided by the electronic approval of payment and USPS or SPRS documents under this section is at least equal to the degree of security that would be provided by the non-electronic approval of those documents.

(2) Operation and maintenance of USAS. The comptroller has determined that the electronic approval of payment and USPS or SPRS documents under this section would facilitate the operation and administration of USAS.

(e) Who may not approve payment and USPS or SPRS documents.

(1) State officers and employees.

(A) An officer or employee of a state agency may not approve and may not be designated to approve another agency's payment and USPS or SPRS documents.

(B) This subparagraph applies when a state agency submits a payment, SPRS, or USPS document that requests payment out of the funds of a second state agency. No officer or employee of the agency that submits the document may approve it.

(2) Individuals not employed by a state agency. An individual who is not employed by a state agency may not approve and may not be designated to approve a state agency's payment, SPRS, or USPS documents.

(f) Who may approve payment and USPS or SPRS documents.

(1) Generally. Only an individual who is described in paragraph (2) or (4) of this subsection may approve a payment, SPRS, or USPS document. When this section refers to an individual approving a payment, SPRS, or USPS document without further qualification or description, the reference is only to an individual who may approve a payment, SPRS, or USPS document under this paragraph.

(2) Individuals with inherent authority to approve payment and USPS or SPRS documents.

(A) The presiding officer of the governing body of a state agency may approve a payment, SPRS, or USPS document of the agency after:

(i) the comptroller has received a signature card that complies with subsection (l) of this section; and

(ii) the officer's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS document.

(B) This subparagraph applies only to a state agency that is headed by an elected or appointed state official. The agency's head of agency may approve a payment, SPRS, or USPS document of the agency after:

(i) the comptroller has received a signature card that complies with subsection (l) of this section; and

(ii) the head of agency's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS or SPRS document.

(C) Notwithstanding subparagraphs (A)(ii) and (B)(ii) of this paragraph, a presiding officer or a head of agency may provide non-electronic approval of a payment, SPRS, or USPS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.

(3) USAS and USPS or SPRS security profile changes.

(A) This paragraph applies only when an individual ceases being either the presiding officer of a governing body or a head of agency.

(B) The individual's security profile in USAS, if any, must be changed so that USAS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve payment documents. The individual's security profile in USPS or SPRS, if any, must be changed so that USPS or SPRS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve USPS or SPRS documents. The changes must take effect not later than the date the individual ceases being the presiding officer or head of agency.

(C) The security coordinator of the state agency with which the individual serves as presiding officer or head of agency is responsible for requesting the comptroller to change the individual's security profiles.

(D) If the comptroller determines that a security coordinator has not complied with subparagraph (C) of this paragraph, then the comptroller may unilaterally change the security profiles.

(E) This subparagraph applies to a payment, SPRS, or USPS document only if the comptroller determines that an individual approved the document after the individual ceased being a presiding officer or a head of agency. The comptroller may take any necessary steps to prevent a warrant from being issued or an electronic funds transfer from being initiated until the document is properly approved. If the comptroller is unable to prevent a warrant from being issued or an electronic funds transfer from being initiated, then the comptroller may take any necessary steps to prevent the warrant from being honored or to reverse the electronic funds transfer. The state agency whose payment, SPRS, or USPS document results in the warrant or electronic funds transfer shall cooperate fully with the comptroller.

(4) Individuals without inherent authority but who may be designated to approve payment documents. An officer or employee of a state agency who does not have inherent authority to approve the agency's payment and USPS or SPRS documents may be designated to approve those documents. A designation is valid only if it is made:

(A) by someone with the authority to make designations; and

(B) according to the procedures required by this section.

(g) Who may designate individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The governing body of a state agency may designate one or more individuals to approve its payment and USPS or SPRS documents.

(B) The governing body of a state agency may authorize the governing body's presiding officer or the agency's executive director, or both, to designate one or more individuals to approve the agency's payment and USPS or SPRS documents. The presiding officer or executive director may make a designation only if the authorization is effective according to subsection (h)(1) of this section.

(2) State agencies headed by an elected or appointed state official.

(A) The head of agency of a state agency may designate one or more individuals to approve the agency's payment and USPS or SPRS documents.

(B) The head of agency of a state agency may authorize the agency's chief deputy to designate one or more individuals to approve the agency's payment and USPS or SPRS documents. The chief deputy may make a designation only if the authorization is effective according to subsection (h)(2) of this section.

(h) How to authorize individuals to designate other individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The authorization of a presiding officer or executive director to designate individuals to approve payment and USPS or SPRS documents is effective only after the comptroller has received proper written notice of the authorization.

(B) Written notice to the comptroller is proper only if the notice satisfies the requirements of this subparagraph.

(i) The notice must be:

(I) a certified copy of the minutes of the meeting of the governing body during which it made the authorization; or

(II) a letter, memorandum, or other writing.

(ii) If the notice consists of a copy of the minutes, then the copy must be certified and signed by:

(I) the presiding officer of the governing body; or

(II) the member of the governing body who is responsible for keeping those minutes.

(iii) If the notice is in the form of a letter, memorandum, or other writing, then it must be signed by the presiding officer of the governing body.

(iv) The notice must state in substance that the governing body has authorized the presiding officer or executive director, as applicable, to designate individuals to approve the agency's payment and USPS or SPRS documents.

(v) The notice must state an effective date for the authorization.

(C) The authorization of a presiding officer or executive director to designate individuals to approve payment and USPS or SPRS documents may be of a named individual or, alternatively, anyone who holds the position of presiding officer or executive director.

(i) If the comptroller receives notification that a governing body has authorized the "presiding officer" or the "executive director," then the body is deemed to have authorized whoever holds the position of presiding officer or executive director.

(ii) If the comptroller receives notification that a governing body has authorized a named individual, then the body is deemed to have decided that its authorization terminates automatically upon the individual's leaving the position of presiding officer or executive director.

(D) The authorization of a presiding officer or executive director may not be limited to designating individuals to approve only payment documents or only USPS and SPRS documents. If the comptroller receives notification that a governing body has authorized the presiding officer or executive director to designate individuals to approve only one type of document, then the body is deemed to have authorized the designation of individuals to approve both types of documents.

(2) State agencies headed by an elected or appointed state official.

(A) The authorization of a chief deputy to designate individuals to approve payment and USPS or SPRS documents is effective only after the comptroller has received proper written notice of the authorization.

(B) Written notice to the comptroller is proper only if the notice:

(i) contains the head of agency's original signature;

(ii) states in substance that the head of agency has authorized the chief deputy to designate individuals to approve the agency's payment and USPS or SPRS documents; and

(iii) states an effective date for the authorization.

(C) The authorization of a chief deputy to designate individuals to approve payment and USPS or SPRS documents may be of a named individual or, alternatively, anyone who holds the position of chief deputy.

(i) If the comptroller receives notification that a head of agency has authorized the "chief deputy," then the head of agency is deemed to have authorized whoever holds the position of chief deputy.

(ii) If the comptroller receives notification that a head of agency has authorized a named individual, then the head of agency is deemed to have decided that the authorization terminates automatically upon the individual's leaving the position of chief deputy.

(D) The authorization of a chief deputy may not be limited to designating individuals to approve only payment documents or only USPS and SPRS documents. If the comptroller receives notification that a head of agency has authorized the chief deputy to designate individuals to approve only one type of document, then the head of agency is deemed to have authorized the designation of individuals to approve both types of documents.

(i) How to revoke authorizations of individuals to designate other individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The governing body of a state agency may revoke its authorization of a presiding officer or executive director to designate individuals to approve the agency's payment and USPS or SPRS documents.

(B) If a governing body revokes an authorization, then the body's presiding officer shall ensure that the comptroller receives written notice of the revocation not later than the tenth day after its effective date.

(C) If the comptroller determines that an individual made a designation after the effective date of the revocation of the individual's authority to make designations, then the comptroller may not recognize the designation.

(D) This subparagraph applies only if the governing body of a state agency has authorized a named individual to designate individuals to approve the agency's payment and USPS or SPRS documents.

(i) The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the body's presiding officer if the comptroller determines that the individual no longer holds that position.

(ii) The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the agency's executive director if the comptroller determines that the individual no longer holds that position.

(iii) A determination under clause (i) or (ii) of this subparagraph may be based on any information the comptroller deems credible.

(E) A change in the membership of a governing body does not automatically revoke an authorization made by that body. Whether an authorization would be revoked automatically by the abolishment of a governing body, the wholesale substitution of one governing body for another, or the transfer of a state agency from the jurisdiction of one governing body to another would depend on the legislation enacting the abolishment, substitution, or transfer.

(2) State agencies headed by an elected or appointed state official.

(A) The head of agency of a state agency may revoke the authorization of a chief deputy to designate individuals to approve the agency's payment and USPS or SPRS documents. The head of agency shall ensure that the comptroller receives written notice of the revocation not later than the tenth day after its effective date. If the comptroller determines that an individual made a designation after the effective date of the revocation of the individual's authority to make designations, then the comptroller may not recognize the designation.

(B) This subparagraph applies only if the head of agency of a state agency has authorized a named individual to designate individuals to approve the agency's payment and USPS or SPRS documents. The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the chief deputy if the comptroller determines that the individual no longer holds that position. This determination may be based on any information the comptroller deems credible.

(C) When an individual stops being the head of agency of a state agency, all authorizations made by that individual are revoked automatically. Whether an authorization would be revoked automatically by the transfer of a state agency from the jurisdiction of one head of agency to another would depend on the legislation enacting the abolishment, substitution, or transfer.

(j) How to designate individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) An individual who has been designated to approve a state agency's payment and USPS or SPRS documents may approve one of those documents if:

(i) the comptroller has received proper written notice of the designation;

(ii) the comptroller has received a signature card that complies with subsection (l) of this section; and

(iii) the individual's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS or SPRS document.

(B) Written notice to the comptroller is proper only if the notice satisfies the requirements of this subparagraph.

(i) The notice must be:

(I) a certified copy of the minutes of the meeting of the governing body during which it made the designation; or

(II) a letter, memorandum, or other writing.

(ii) If the notice consists of a copy of the minutes, then the copy must be certified and signed by:

(I) the presiding officer of the governing body; or

(II) the member of the governing body who is responsible for keeping those minutes.

(iii) If the notice is in the form of a letter, memorandum, or other writing, then it must be signed by:

(I) the presiding officer of the governing body if it made the designation; or

(II) the individual who made the designation if the governing body did not.

(iv) The notice must:

(I) identify the governing body or individual who made the designation;

(II) list the legal name of the designated individual;

(III) state an effective date for the designation; and

(IV) say in substance that the individual has been designated to approve payment and USPS or SPRS documents.

(C) Notwithstanding subparagraph (A)(iii) of this paragraph, an individual may provide non-electronic approval of a payment, SPRS, or USPS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.

(D) The designation of an individual to approve payment, SPRS, or USPS documents must be of a named individual. The designation may not be of just anyone who holds a particular office or position. If the comptroller receives notification that a particular office or position has been designated, then the designation will be deemed to have been of the individual who holds the office or position as of the date the designation is made. The comptroller's failure to specifically refuse to recognize the designation of an office or position does not constitute the comptroller's acceptance of the designation of the office or position.

(E) The designation of an individual may not be limited to approving only payment documents or only USPS and SPRS documents. If the comptroller receives notification that an individual has been designated to approve only one type of document, then the designation will be deemed to include approval of both types of documents.

(2) State agencies headed by an elected or appointed state official.

(A) An individual who has been designated to approve a state agency's payment and USPS or SPRS documents may approve one of those documents if:

(i) the comptroller has received proper written notice of the designation;

(ii) the comptroller has received a signature card that complies with subsection (l) of this section; and

(iii) the individual's security profile has been established according to:

(I) USAS security's procedures and requirements if the approval is of a payment document; or

(II) USPS or SPRS security's procedures and requirements if the approval is of a USPS or SPRS document.

(B) Written notice to the comptroller is proper only if the notice:

(i) is signed by the individual who made the designation;

(ii) lists the legal name of the designated individual;

(iii) says who made the designation;

(iv) states an effective date for the designation; and

(v) says in substance that the individual has been designated to approve payment and USPS or SPRS documents.

(C) Notwithstanding subparagraph (A)(iii) of this paragraph, an individual may provide non-electronic approval of a payment, SPRS, or USPS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.

(D) The designation of an individual to approve payment and USPS or SPRS documents must be of a named individual. The designation may not be of just anyone who holds a particular office or position. If the comptroller receives notification that a particular office or position has been designated, then the designation will be deemed to have been of the individual who holds the office or position as of the date the designation is made. The comptroller's failure to specifically refuse to recognize the designation of an office or position does not constitute the comptroller's acceptance of the designation of the office or position.

(E) The designation of an individual may not be limited to approving only payment documents or only USPS and SPRS documents. If the comptroller receives notification that an individual has been designated to approve only one type of document, then the designation will be deemed to include approval of both types of documents.

(k) How to revoke designations of individuals to approve payment and USPS or SPRS documents.

(1) State agencies headed by a governing body.

(A) The governing body of a state agency may, at anytime, revoke the designation of an individual to approve the agency's payment and USPS or SPRS documents, regardless of who made the designation.

(B) This subparagraph applies only if a state agency's presiding officer is authorized to designate individuals to approve the agency's payment and USPS or SPRS documents. The presiding officer may revoke the designation of an individual only if:

(i) the presiding officer made the designation;

(ii) an individual who previously held the position of presiding officer made the designation while holding that position;

(iii) the agency's executive director made the designation; or

(iv) an individual who previously held the position of executive director made the designation while holding that position.

(C) This subparagraph applies only if a state agency's executive director is authorized to designate individuals to approve the agency's payment and USPS or SPRS documents. The executive director may revoke the designation of an individual only if:

(i) the executive director made the designation; or

(ii) an individual who previously held the position of executive director made the designation while holding that position.

(D) If the designation of an individual to approve payment and USPS or SPRS documents is revoked, then the comptroller must receive written notification of the revocation not later than the tenth day after the revocation is made. The ten day period starts running when the revocation decision is made, not when the revocation takes effect. The notification must be provided by the presiding officer of a governing body if that body revoked the designation. Otherwise, the notification must be provided by the individual who revoked the designation.

(E) A change in the membership of a state agency's governing body does not automatically revoke the body's designation of any individual to approve payment and USPS or SPRS documents. Whether designations would be revoked automatically by the abolishment or creation of a governing body, the substitution of one governing body for another, or the transfer of a state agency from the jurisdiction of one governing body to another would depend on the legislation that enacts the change.

(F) A notification to the comptroller under subparagraph (D) of this paragraph must satisfy the requirements of this subparagraph.

(i) The notification must be:

(I) a certified copy of the minutes of the meeting of the governing body during which it revoked the designation; or

(II) a letter, memorandum, or other writing.

(ii) If the notification consists of a copy of the minutes, then the copy must be certified and signed by:

(I) the presiding officer of the governing body; or

(II) the member of the governing body who is responsible for keeping those minutes.

(iii) If the notification is in the form of a letter, memorandum, or other writing, then it must be signed by:

(I) the presiding officer of the governing body if it revoked the designation; or

(II) the individual who revoked the designation if the governing body did not.

(iv) The notification must:

(I) identify the governing body or individual who revoked the designation;

(II) list the legal name of the individual whose designation is revoked;

(III) state an effective date for the revocation; and

(IV) say in substance that the individual's designation to approve payment and USPS or SPRS documents is revoked.

(2) State agencies headed by an elected or appointed state official.

(A) The head of agency of a state agency may, at anytime, revoke the designation of an individual to approve the agency's payment and USPS or SPRS documents, regardless of who made the designation.

(B) This subparagraph applies only if a state agency's chief deputy is authorized to designate individuals to approve the agency's payment and USPS or SPRS documents. The chief deputy may revoke the designation of an individual only if:

(i) the chief deputy made the designation; or

(ii) an individual who previously held the position of chief deputy made the designation while holding that position.

(C) If the designation of an individual to approve payment and USPS or SPRS documents is revoked, then the comptroller must receive written notification of the revocation not later than the tenth day after the revocation is made. The ten day period starts running when the revocation decision is made, not when the revocation takes effect. The notification must be provided by the individual who revoked the designation.

(D) A change in a state agency's head of agency does not automatically revoke the head of agency's designation of any individual to approve payment and USPS or SPRS documents. Whether designations would be revoked automatically by the transfer of a state agency from the jurisdiction of one head of agency to another would depend on the legislation that enacts the change.

(E) A notification to the comptroller under subparagraph (C) of this paragraph must:

(i) be signed by the individual who revoked the designation;

(ii) identify the individual who revoked the designation;

(iii) list the legal name of the individual whose designation is revoked;

(iv) state an effective date for the revocation; and

(v) say in substance that the individual's designation to approve payment and USPS or SPRS documents is revoked.

(3) Mandatory revocations because of termination of employment.

(A) This paragraph applies to all state agencies.

(B) When an individual terminates employment with a state agency, the individual's designation to approve the agency's payment and USPS or SPRS documents ends on the effective date of the termination. Any officer or employee of the agency may notify the comptroller about the termination. Regardless of who provides the notification, the agency must ensure that the comptroller receives it not later than the fifth day after the effective date of the termination.

(C) The comptroller shall stop recognizing the designation of an individual to approve a state agency's payment and USPS or SPRS documents if the comptroller determines that the individual has terminated employment with the agency. This determination may be based on any information the comptroller deems credible.

(4) Revocations by the comptroller.

(A) This paragraph applies to all state agencies.

(B) The comptroller may unilaterally revoke the designation of any individual to approve payment and USPS or SPRS documents for any reason the comptroller deems appropriate.

(5) USAS security profile changes.

(A) If the designation of an individual to approve payment and USPS or SPRS documents is revoked, then the individual's security profiles in USAS and USPS or SPRS, if any, must be changed so that:

(i) USAS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve payment documents; and

(ii) USPS or SPRS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve USPS or SPRS documents.

(B) A security profile change required by subparagraph (A) of this paragraph must take effect not later than the date the revocation takes effect.

(C) The comptroller is responsible for changing the security profiles if the comptroller revoked the designation. Otherwise, the security coordinator of the state agency that revoked the designation is responsible.

(D) If the comptroller determines that a security coordinator has not complied with subparagraph (C) of this paragraph, then the comptroller may unilaterally change the security profiles of the individual whose designation has been revoked.

(6) Unauthorized approvals of payment and USPS or SPRS documents.

(A) This paragraph applies to a payment or USPS or SPRS document only if the comptroller determines that an individual approved the document after the taking effect of the revocation of the individual's designation to approve payment and USPS or SPRS documents.

(B) The comptroller may take any necessary steps to prevent a warrant from being issued or an electronic funds transfer from being initiated until a payment, SPRS, or USPS document subject to this paragraph is properly approved.

(C) If the comptroller is unable to prevent a warrant from being issued or an electronic funds transfer from being initiated, then the comptroller may take any necessary steps to prevent the warrant from being honored or to reverse the electronic funds transfer. The state agency whose payment, SPRS, or USPS document resulted in the warrant or electronic funds transfer shall cooperate fully with the comptroller in this regard.

(l) Signature card requirements.

(1) Presiding officers and heads of agency. A signature card submitted by a state agency concerning the approval of payment and USPS or SPRS documents by the presiding officer of a governing body or by a head of agency is valid only if the card:

(A) specifies the legal name, Texas identification number, mail code, and position of the presiding officer or head of agency;

(B) provides the presiding officer's or head of agency's user identification number, if the officer or head of agency has one;

(C) contains the presiding officer's or head of agency's original signature;

(D) specifies the agency's name and identification number;

(E) provides a contact phone number for the agency; and

(F) lists an effective date.

(2) Designated individuals. A signature card submitted by a state agency concerning the designation of an individual to approve payment and USPS or SPRS documents is valid only if the card:

(A) specifies the designated individual's legal name, Texas identification number, mail code, and position;

(B) provides the designated individual's user identification number, if the individual has one;

(C) contains the designated individual's original signature;

(D) specifies the agency's name and identification number;

(E) provides a contact phone number for the agency; and

(F) lists an effective date that is the same as the date listed in the accompanying written notification.

(m) Limitations adopted by state agencies concerning approval and designation authority.

(1) Limitations on approval authority. The comptroller may not enforce a state agency's decision to limit an individual's approval authority to particular types of payment, SPRS, or USPS documents if the limit is stricter than required by state law and this section. Enforcement of that decision is solely the agency's responsibility.

(2) Limitations on designation authority. The comptroller may not enforce a state agency's decision to limit a presiding officer's, executive director's, or chief deputy's authority to designate individuals to approve payment, SPRS, or USPS documents if the limit is stricter than required by state law and this section. Enforcement of that decision is solely the agency's responsibility.

(n) Signature card and notification forms adopted by the comptroller.

(1) Adoption of forms. The comptroller may adopt one or more forms to facilitate compliance with the signature card and written notice and notification requirements of this section.

(2) Use of forms. If the comptroller adopts a form under paragraph (1) of this subsection, then a state agency must use the form to comply with the requirements of this section to the extent the comptroller intends the form to be used for that purpose.

(o) How electronic approvals of payment and USPS or SPRS documents are provided.

(1) Release of payment documents into USAS for processing.

(A) A state agency may request USAS to process a batch of the agency's payment documents only by releasing the batch on-line according to this section and the procedures adopted by the comptroller.

(B) A batch that a state agency has released must be released again by the agency if:

(i) a transaction within the batch is altered after its original release; or

(ii) a transaction is added to the batch after its original release.

(C) An individual may approve a payment document only if:

(i) the individual begins an on-line session in USAS by entering the individual's user identification number and password; and

(ii) USAS determines that the user identification number and password belong to an individual who USAS recognizes as authorized to approve the agency's payment documents.

(D) USAS recognizes an individual as authorized to release a state agency's payment documents only if the comptroller has given the individual the necessary security to release those documents.

(E) A state agency that wants an individual to have release capabilities for the agency's payment documents must properly request necessary security for the individual from the comptroller. The comptroller will grant the request only if the comptroller determines that the individual:

(i) has inherent authority to approve payment documents and the requirements of subsection (f)(2) of this section have been satisfied; or

(ii) the individual has been designated to approve the agency's payment documents, the requirements of subsection (j) of this section have been satisfied, and the individual's designation has not been revoked according to subsection (k) of this section.

(2) Legal significance of releasing batches of payment documents into USAS for processing.

(A) The on-line release of a batch of payment documents into USAS for processing constitutes the electronic approval of all those documents.

(B) An individual who releases a batch of payment documents into USAS for processing is responsible for the truth and accuracy of the following statement with respect to each payment document and transaction in the batch: "I approve each purchase, travel, and payroll document in this batch. Employees at my state agency have determined that each document complies with applicable law, including the General Appropriations Act (GAA) and the rules of the comptroller of public accounts. For each purchase or travel document, employees at my state agency have determined that: the goods and services covered by the document comply with the requirements of the contracts under which they were purchased; and that the invoices for the goods and services are correct. For each transaction included in a travel document, employees at my state agency have determined that the information included in the transaction has been approved by the claimant. For each payroll document, employees at my state agency have determined that: the payroll is correct and unpaid; and that any salary supplementation report required by the GAA to be filed with the comptroller of public accounts and the secretary of state has been filed. My state agency has authorized me to make this statement for the agency, and I accept responsibility for it." An individual who does not want to be responsible for this statement about a batch may not release the batch. An individual may not both release a batch and avoid responsibility for the statement.

(C) The chief fiscal officer of a state agency shall ensure that each individual who is authorized or designated to approve the agency's payment documents understands this paragraph. The agency's executive director or head of agency, as applicable, shall ensure that the chief fiscal officer satisfies this requirement. However, the failure of the chief fiscal officer, the executive director, or the head of agency to comply with a requirement of this subparagraph does not relieve any individual from responsibility for the truth and accuracy of the statement in subparagraph (B) of this paragraph.

(D) A state agency may not adopt a policy, procedure, or rule that conflicts with this paragraph.

(3) Release of USPS or SPRS documents into USPS or SPRS for processing.

(A) A state agency may request USPS or SPRS to process a batch of the agency's USPS or SPRS documents only by releasing the batch on-line according to this section and the procedures adopted by the comptroller.

(B) A batch that a state agency has released must be released again by the agency if:

(i) a transaction within the batch is altered after its original release; or

(ii) a transaction is added to the batch after its original release.

(C) An individual may approve a USPS or SPRS document only if:

(i) the individual begins an on-line session in USPS or SPRS by entering the individual's user identification number and password; and

(ii) USPS or SPRS determines that the user identification number and password belong to an individual who USPS or SPRS recognizes as authorized to approve the agency's USPS or SPRS documents.

(D) USPS or SPRS recognizes an individual as authorized to release a state agency's USPS or SPRS documents only if the comptroller has given the individual the necessary security to release those documents.

(E) A state agency that wants an individual to have release capabilities for the agency's USPS or SPRS documents must properly request necessary security for the individual from the comptroller. The comptroller will grant the request only if the comptroller determines that the individual:

(i) has inherent authority to approve USPS or SPRS documents and the requirements of subsection (f)(2) of this section have been satisfied; or

(ii) the individual has been designated to approve the agency's USPS or SPRS documents, the requirements of subsection (j) of this section have been satisfied, and the individual's designation has not been revoked according to subsection (k) of this section.

(4) Legal significance of releasing batches of USPS or SPRS documents into USPS or SPRS for processing.

(A) The on-line release of a batch of USPS or SPRS documents into USPS or SPRS for processing constitutes the electronic approval of all those documents.

(B) An individual who releases a batch of USPS or SPRS documents into USPS or SPRS for processing is responsible for the truth and accuracy of the following statement with respect to each document and transaction in the batch: "I approve each document in this batch. Employees at my state agency have determined that each document complies with applicable law, including the General Appropriations Act (GAA) and the rules of the comptroller of public accounts. For each document that involves the payment of compensation to a state officer or employee, employees at my state agency have determined that: the payroll is correct and unpaid; and that any salary supplementation report required by the GAA to be filed with the comptroller of public accounts and the secretary of state has been filed. For each document that does not involve the payment of compensation to a state officer or employee, employees at my state agency have determined that: the goods and services covered by the document comply with the requirements under which they were purchased; and that the invoices for the goods or services are correct. For each transaction that involves the reimbursement of a meal expense incurred during non-overnight travel, employees at my state agency have determined that the information included in the transaction has been approved by the claimant. My state agency has authorized me to make this statement for the agency, and I accept responsibility for it." An individual who does not want to be responsible for this statement about a batch may not release the batch. An individual may not both release a batch and avoid responsibility for the statement.

(C) The chief fiscal officer of a state agency shall ensure that each individual who is authorized or designated to approve the agency's USPS or SPRS documents understands this paragraph. The agency's executive director or head of agency, as applicable, shall ensure that the chief fiscal officer satisfies this requirement. However, the failure of the chief fiscal officer, the executive director, or the head of agency to comply with a requirement of this subparagraph does not relieve any individual from responsibility for the truth and accuracy of the statement in subparagraph (B) of this paragraph.

(D) A state agency may not adopt a policy, procedure, or rule that conflicts with this paragraph.

(5) Disclosure of user identification numbers and passwords. An individual may not disclose the individual's user identification number or password, or both, to any individual or entity. Therefore, an individual may not authorize another individual to release a batch of payment, SPRS, or USPS documents by using the first individual's user identification number and password. Penal Code, §33.02(b) criminalizes the intentional or knowing disclosure of a password or personal identification number to an individual or entity without the effective consent of the computer owner.

(p) Non-electronic approvals of paper payment documents.

(1) Special definition. In this subsection, "payment document" means only a paper payment document.

(2) General requirements. A state agency may provide non-electronic approval of a payment document only if the comptroller consents to that approval method.

(3) Requirements of other subsections. In addition to this subsection, subsections (a) - (o) of this section govern all aspects of non-electronic approvals of payment documents, with the exceptions specified in those subsections.

(4) Method for providing approvals.

(A) The non-electronic approval of a payment document must be provided through the original signature of an individual who is authorized or designated to approve the document.

(B) An individual's original signature on a payment document is a valid approval of that document only if the signature matches the individual's signature on the appropriate signature card or, if adopted by the comptroller, on the form used in lieu of signature cards.

(5) Reapprovals. If a payment document is altered in any manner after an individual has properly approved the document, then the document must be properly approved again.

(q) Non-electronic approvals of payment documents submitted to USAS electronically and of USPS or SPRS documents.

(1) Special definition. In this subsection, "payment document" means only a payment document that is submitted to USAS electronically.

(2) General requirements. A state agency may provide non-electronic approval of a payment, SPRS, or USPS document only if the comptroller consents to that approval method.

(3) Requirements of other subsections. In addition to this subsection, subsections (a) - (o) of this section govern all aspects of non-electronic approvals of payment and USPS or SPRS documents, with the exceptions specified in those subsections.

(4) Method for providing approvals.

(A) The non-electronic approval of a payment, SPRS, or USPS document must be provided through the original signature of an individual who is authorized or designated to approve the document.

(B) An individual's original signature on a payment, SPRS, or USPS document is a valid approval of that document only if the signature matches the individual's signature on the appropriate signature card or, if adopted by the comptroller, on the form used in lieu of signature cards.

(5) Reapprovals. If a payment, SPRS, or USPS document is altered in any manner after an individual has properly approved the document, then the document must be properly approved again.

(6) When the release of a payment, SPRS, or USPS document does not constitute approval of that document.

(A) If the comptroller has consented to the contract, a state agency may contract with an individual not employed by the agency or with another entity to:

(i) release the agency's payment documents into USAS for processing;

(ii) release the agency's USPS or SPRS documents into USPS or SPRS for processing; or

(iii) release the agency's payment documents into USAS for processing and the agency's USPS or SPRS documents into USPS or SPRS for processing.

(B) The release of a payment, SPRS, or USPS document under subparagraph (A) of this paragraph does not constitute approval of the document. The document may be approved only according to paragraph (4) of this subsection.

(C) The comptroller may consent to a contract described by subparagraph (A) of this paragraph if:

(i) the comptroller is satisfied that the state agency whose payment, SPRS, or USPS documents are being released has statutory authority to enter into the contract;

(ii) the comptroller is satisfied that the state agency, if any, that will be releasing the payment, SPRS, or USPS documents has statutory authority to enter into the contract;

(iii) the contract is in writing;

(iv) the comptroller is satisfied that the agency whose payment, SPRS, or USPS documents are being released has established an internal system for properly authorized or designated individuals to approve those documents before their release according to paragraph (4) of this subsection;

(v) the comptroller is satisfied that approvals under the internal system described in clause (iv) of this subparagraph can be verified easily by the comptroller and the individual or entity that releases the payment, SPRS, or USPS documents;

(vi) before an individual or entity releases a payment, SPRS, or USPS document, the contract requires the individual or entity to verify that the approval methods described in paragraph (4) of this subsection have been followed;

(vii) the individual or entity has entered into a contract with the comptroller that obligates the individual or entity to comply with the requirements of this paragraph, if the comptroller determines the contract is necessary;

(viii) the agency whose payment, SPRS, or USPS documents are being released has agreed in its post-payment contract, if any, with the comptroller that the release of those documents into USAS, SPRS, or USPS, as applicable, does not constitute approval of the document; and

(ix) the comptroller is satisfied that the security provided under the contract is at least equivalent to the security that would exist if the agency released its own payment, SPRS, or USPS documents.

(D) The burden of demonstrating that a state agency has statutory authority to enter into a contract described in subparagraph (A) of this paragraph is with the agency. The comptroller may require the submission of whatever information and legal arguments the comptroller deems necessary to satisfy the comptroller that the authority exists.

(E) The comptroller must be kept informed about who is authorized to release the payment, SPRS, or USPS documents of a state agency that has entered into a contract described in subparagraph (A) of this paragraph. The authorized individuals may not appear on the agency's signature cards or, if adopted by the comptroller, the form used in lieu of the cards. The officer or employee of the agency who has the authority to enter into accounting services contracts is responsible for complying with this subparagraph.

Source Note: The provisions of this §5.61 adopted to be effective November 19, 1996, 21 TexReg 10990; amended to be effective February 2, 1998, 23 TexReg 786; amended to be effective October 20, 2008, 33 TexReg 8650