Specifications include, but are not limited to: SCO is constitutionally responsible for the prompt and accurate payment of the State’s bills and for payments to state employees and retirees. To meet this obligation, SCO prepares and issues all payments from the State Treasury on behalf of SCO. SCO offers all state agencies the ability to make payments electronically, commonly known as direct deposit or EFT. Under Article XVI, SEC. 7 of the California Constitution, SCO can only draw funds outside the State Treasury with a “duly drawn warrant.” SCO is required to agreement with an Originating Depository Financial Institution (ODFI), following the guidelines in GC Section 16500 regarding eligible banks. U.S. Bank National Association (hereinafter, U.S. Bank) currently holds the Agreement to function as the ODFI for all SCO EFT payments.
