| 1 | 1 | | |
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| 2 | 2 | | SECOND REGULAR SESSION |
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| 3 | 3 | | SENATE BILL NO. 1142 |
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| 4 | 4 | | 102ND GENERAL ASSEMBLY |
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| 5 | 5 | | INTRODUCED BY SENATOR MOON. |
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| 6 | 6 | | 4373S.01I KRISTINA MARTIN, Secretary |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | To amend chapters 30 and 34, RSMo, by adding thereto two new sections relating to public |
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| 9 | 9 | | contracts. |
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| 10 | 10 | | |
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| 11 | 11 | | Be it enacted by the General Assembly of the State of Missouri, as follows: |
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| 12 | 12 | | Section A. Chapters 30 and 34, RSMo, are amended by adding 1 |
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| 13 | 13 | | thereto two new sections, to be known as sections 30.620 and 2 |
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| 14 | 14 | | 34.715, to read as follows:3 |
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| 15 | 15 | | 30.620. 1. For the purposes of this section, the 1 |
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| 16 | 16 | | following terms mean: 2 |
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| 17 | 17 | | (1) "Banking contract", a contract entered into by the 3 |
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| 18 | 18 | | treasurer and a financial i nstitution to provide banking 4 |
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| 19 | 19 | | goods or services; 5 |
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| 20 | 20 | | (2) "Boycott", performing any of the following acts 6 |
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| 21 | 21 | | without a reasonable business purpose: 7 |
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| 22 | 22 | | (a) Refusing to deal with a company; 8 |
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| 23 | 23 | | (b) Terminating business activities with a company; or 9 |
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| 24 | 24 | | (c) Any other action that is intended to penalize, 10 |
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| 25 | 25 | | inflict economic harm on, or limit commercial relations with 11 |
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| 26 | 26 | | a company because the company: 12 |
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| 27 | 27 | | a. Engages in the exploration, production, 13 |
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| 28 | 28 | | utilization, transportation, sale, or manufacturing of 14 |
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| 29 | 29 | | fossil fuel-based energy, timber, mining, or agriculture; 15 |
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| 30 | 30 | | b. Engages in the exploration, production, 16 |
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| 31 | 31 | | utilization, transportation, sale, or manufacturing of 17 |
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| 32 | 32 | | fossil fuel-based energy and does not commit or pledge to 18 SB 1142 2 |
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| 33 | 33 | | meet environmental standards beyond applicable federal and 19 |
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| 34 | 34 | | state law; or 20 |
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| 35 | 35 | | c. Does business with a company that engages in the 21 |
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| 36 | 36 | | exploration, production, utilization, transportation, sale, 22 |
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| 37 | 37 | | or manufacturing of fossil fuel -based energy; 23 |
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| 38 | 38 | | (3) "Company", any sole proprietorship, organi zation, 24 |
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| 39 | 39 | | association, corporation, partnership, joint venture, 25 |
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| 40 | 40 | | limited partnership, limited liability partnership, limited 26 |
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| 41 | 41 | | liability company, or other entity or business association, 27 |
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| 42 | 42 | | including all wholly owned subsidiaries, majority -owned 28 |
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| 43 | 43 | | subsidiaries, parent companies, or affiliates of those 29 |
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| 44 | 44 | | entities or business associations, that exist for the 30 |
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| 45 | 45 | | purpose of making profit; 31 |
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| 46 | 46 | | (4) "Financial institution", a bank, national banking 32 |
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| 47 | 47 | | association, non-bank financial institution, a bank and 33 |
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| 48 | 48 | | trust company, a trust company, a savings and loan 34 |
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| 49 | 49 | | association, a building and loan association, a mutual 35 |
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| 50 | 50 | | savings bank, a credit union, or a savings bank; 36 |
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| 51 | 51 | | (5) "Reasonable business purpose", includes any 37 |
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| 52 | 52 | | purpose directly related to: 38 |
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| 53 | 53 | | (a) Promoting the financial success or stability of a 39 |
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| 54 | 54 | | financial institution; 40 |
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| 55 | 55 | | (b) Mitigating risk to a financial institution; 41 |
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| 56 | 56 | | (c) Complying with legal or regulatory requirements; or 42 |
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| 57 | 57 | | (d) Limiting liability of a financial institution; 43 |
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| 58 | 58 | | (6) "Restricted financial institution", a financial 44 |
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| 59 | 59 | | institution included in the most recently updated restricted 45 |
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| 60 | 60 | | financial institution list; 46 |
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| 61 | 61 | | (7) "Restricted financial institution list", the list 47 |
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| 62 | 62 | | of financial institutions prepared, maintained, and 48 |
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| 63 | 63 | | published pursuant to this section. 49 SB 1142 3 |
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| 64 | 64 | | 2. (1) The treasurer shall create and maintain a 50 |
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| 65 | 65 | | restricted financial institution list containing the names 51 |
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| 66 | 66 | | of financial institutions that are engaged in a boycott. 52 |
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| 67 | 67 | | The list shall be used by the treasurer for the purpose of 53 |
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| 68 | 68 | | determining which financial institutions to enter into a 54 |
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| 69 | 69 | | banking contract with. 55 |
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| 70 | 70 | | (2) The treasurer shall publicly post the restricted 56 |
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| 71 | 71 | | financial institution list on the treasurer's website and 57 |
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| 72 | 72 | | submit a copy of the list to the governor, the president pro 58 |
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| 73 | 73 | | tempore of the senate, and the speaker of the house of 59 |
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| 74 | 74 | | representatives. 60 |
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| 75 | 75 | | (3) A citation to this section and a brief summary of 61 |
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| 76 | 76 | | the purpose of the list shall appear at the top of the list, 62 |
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| 77 | 77 | | including a statement that inclusion on the list is not an 63 |
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| 78 | 78 | | indication of unsafe or unsound operating conditions of any 64 |
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| 79 | 79 | | financial institution nor any risk to consumer deposits. 65 |
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| 80 | 80 | | (4) The treasurer shall update the restricted 66 |
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| 81 | 81 | | financial institution list annually, or more often if the 67 |
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| 82 | 82 | | treasurer considers it ne cessary. 68 |
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| 83 | 83 | | 3. (1) At least forty-five days prior to including a 69 |
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| 84 | 84 | | financial institution on the restricted financial 70 |
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| 85 | 85 | | institution list, the treasurer shall send a written notice 71 |
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| 86 | 86 | | to the institution containing the following information: 72 |
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| 87 | 87 | | (a) That the treasurer has determined that the 73 |
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| 88 | 88 | | financial institution is a restricted financial institution; 74 |
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| 89 | 89 | | (b) That the financial institution shall be placed on 75 |
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| 90 | 90 | | the restricted financial institution list in forty -five days 76 |
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| 91 | 91 | | unless, within thirty days followin g the receipt of the 77 |
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| 92 | 92 | | written notice, the restricted financial institution 78 |
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| 93 | 93 | | demonstrates that it is not engaged in a boycott; 79 |
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| 94 | 94 | | (c) That the restricted financial institution list is 80 |
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| 95 | 95 | | published on the treasurer's website; and 81 SB 1142 4 |
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| 96 | 96 | | (d) That the financial institution's placement on the 82 |
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| 97 | 97 | | list may render the financial institution ineligible to 83 |
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| 98 | 98 | | enter into, or remain in, banking contracts with the state. 84 |
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| 99 | 99 | | (2) Following a restricted financial institution's 85 |
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| 100 | 100 | | inclusion on the restricted financial instituti on list, the 86 |
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| 101 | 101 | | treasurer shall remove the financial institution from the 87 |
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| 102 | 102 | | list if the financial institution demonstrates that it has 88 |
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| 103 | 103 | | ceased all boycotts. 89 |
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| 104 | 104 | | 4. (1) In determining whether to include a financial 90 |
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| 105 | 105 | | institution on the restricted financial i nstitution list, 91 |
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| 106 | 106 | | the treasurer shall consider and may rely upon the following 92 |
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| 107 | 107 | | information: 93 |
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| 108 | 108 | | (a) A financial institution's certification that it is 94 |
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| 109 | 109 | | not engaged in a boycott; 95 |
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| 110 | 110 | | (b) Publicly available statements or information made 96 |
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| 111 | 111 | | by the financial institution, including statements by a 97 |
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| 112 | 112 | | member of a financial institution's governing body, an 98 |
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| 113 | 113 | | executive director of a financial institution, or any other 99 |
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| 114 | 114 | | officer or employee of the financial institution with the 100 |
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| 115 | 115 | | authority to issue policy statements on behalf of the 101 |
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| 116 | 116 | | financial institution; or 102 |
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| 117 | 117 | | (c) Information published by a state or federal 103 |
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| 118 | 118 | | government entity. 104 |
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| 119 | 119 | | (2) In determining whether to include a financial 105 |
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| 120 | 120 | | institution on the restricted financial institution list, 106 |
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| 121 | 121 | | the treasurer may not rely solely on the following 107 |
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| 122 | 122 | | information: 108 |
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| 123 | 123 | | (a) Statements or complaints by a company; or 109 |
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| 124 | 124 | | (b) Media reports of a financial institution's boycott. 110 |
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| 125 | 125 | | (3) A financial institution may not be compelled to 111 |
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| 126 | 126 | | produce or disclose any data or informat ion deemed 112 SB 1142 5 |
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| 127 | 127 | | confidential, privileged, or otherwise protected from 113 |
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| 128 | 128 | | disclosure by state or federal law. 114 |
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| 129 | 129 | | 5. (1) In selecting a financial institution to enter 115 |
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| 130 | 130 | | into a banking contract, the treasurer may disqualify 116 |
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| 131 | 131 | | restricted financial institutions fro m the competitive 117 |
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| 132 | 132 | | bidding process or from any other official selection process. 118 |
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| 133 | 133 | | (2) The treasurer may refuse to enter into a banking 119 |
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| 134 | 134 | | contract or an extension of any banking contract with a 120 |
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| 135 | 135 | | restricted financial institution based on its restricted 121 |
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| 136 | 136 | | financial institution status. 122 |
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| 137 | 137 | | (3) The treasurer may require, as a term of any 123 |
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| 138 | 138 | | banking contract, an agreement by the financial institution 124 |
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| 139 | 139 | | not to engage in a boycott for the duration of the contract. 125 |
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| 140 | 140 | | 6. With respect to actions taken in complia nce with 126 |
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| 141 | 141 | | this section, a public body, public official, public 127 |
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| 142 | 142 | | employee, or member or employee of a financial institution 128 |
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| 143 | 143 | | shall be immune from any liability. 129 |
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| 144 | 144 | | 7. No party may take action to penalize or threaten to 130 |
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| 145 | 145 | | penalize any financial institution for compliance with this 131 |
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| 146 | 146 | | section. Any party taking such action shall have caused 132 |
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| 147 | 147 | | harm to this state, including by interfering with the 133 |
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| 148 | 148 | | state's sovereign interests in administering its programs 134 |
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| 149 | 149 | | and with the state's commercial relationships with financ ial 135 |
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| 150 | 150 | | institutions. 136 |
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| 151 | 151 | | 8. Any contract subject to this section may be 137 |
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| 152 | 152 | | enforced by the attorney general. The attorney general may 138 |
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| 153 | 153 | | investigate possible violations of this section in the same 139 |
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| 154 | 154 | | manner as investigative authority is exercised pursuant to 140 |
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| 155 | 155 | | section 407.040. 141 |
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| 156 | 156 | | 9. In addition to any other remedies available at law 142 |
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| 157 | 157 | | or equity, a company that provides false information to the 143 |
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| 158 | 158 | | treasurer and later receives state monies, or violates a 144 SB 1142 6 |
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| 159 | 159 | | contractual agreement with the state not to engage in a 145 |
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| 160 | 160 | | boycott, shall be obligated to pay a civil penalty to the 146 |
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| 161 | 161 | | state in an amount equal to three times all monies paid to 147 |
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| 162 | 162 | | the company by the state for the company's goods or services. 148 |
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| 163 | 163 | | 34.715. 1. The state, any agency of the state, any 1 |
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| 164 | 164 | | political subdivision of the state, or any instrumentality 2 |
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| 165 | 165 | | thereof, when engaged in procuring or letting contracts for 3 |
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| 166 | 166 | | any purpose shall ensure that bidders, offerors, 4 |
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| 167 | 167 | | contractors, or subcontractors are not given preferential 5 |
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| 168 | 168 | | treatment or discriminated agai nst based on an 6 |
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| 169 | 169 | | environmental, social, and governance score. 7 |
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| 170 | 170 | | 2. For purposes of this section, the term 8 |
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| 171 | 171 | | "environmental, social, and governance score" means an 9 |
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| 172 | 172 | | evaluation conducted by an entity that takes into 10 |
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| 173 | 173 | | consideration one or more of the follo wing: 11 |
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| 174 | 174 | | (1) Whether the bidder, offeror, contractor, or 12 |
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| 175 | 175 | | subcontractor engages in the exploration, production, 13 |
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| 176 | 176 | | utilization, transportation, sale, or manufacturing of 14 |
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| 177 | 177 | | fossil fuel-based energy and does not commit or pledge to 15 |
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| 178 | 178 | | meet environmental standa rds beyond applicable state and 16 |
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| 179 | 179 | | federal law; 17 |
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| 180 | 180 | | (2) Whether the bidder, offeror, contractor, or 18 |
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| 181 | 181 | | subcontractor engages in production agriculture; 19 |
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| 182 | 182 | | (3) Whether the bidder, offeror, contractor, or 20 |
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| 183 | 183 | | subcontractor spends funds on social welfare; 21 |
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| 184 | 184 | | (4) The wages and working hours of the employees of 22 |
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| 185 | 185 | | the bidder, offeror, contractor, or subcontractor; and 23 |
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| 186 | 186 | | (5) The environmental policies of the bidder, offeror, 24 |
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| 187 | 187 | | contractor, or subcontractor. 25 |
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| 188 | 188 | | Section B. If any provision of sect ion A of this act 1 |
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| 189 | 189 | | or the application thereof to anyone or to any circumstance 2 |
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| 190 | 190 | | is held invalid, the remainder of those sections and the 3 SB 1142 7 |
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| 191 | 191 | | application of such provisions to others or other 4 |
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| 192 | 192 | | circumstances shall not be affected thereby. 5 |
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| 193 | 193 | | |
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