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