Creates new restrictions on certain business practices of entities doing business in this state related to economic boycotts and DEI initiatives
The key provisions stipulated in SB980 may significantly alter how public entities approach contracting with businesses. By requiring this certification, the bill seeks to ensure that funds are not awarded to companies that partake in socially-driven economic boycotts against industries such as agriculture, mining, or energy sectors. This requirement could deter companies from engaging in advocacy or protest actions that might trigger accusations of boycotting, thereby impacting their business relationships with state entities. The consequence for non-compliance includes a category of damages where if a contract is found to have violated the provisions, the state is entitled to tripled damages based on payments made to the contractor during the contract's life.
Senate Bill 980 introduces new restrictions on the business practices of entities operating within Missouri, particularly concerning contracts with public entities. The bill mandates that any public entity wishing to enter into a contract must obtain a written certification from the contractor asserting that they are not engaged in any form of economic boycott. Economic boycotts are defined in the bill as actions intended to penalize or inflict economic harm based on a company's engagement in certain industries or noncompliance with specified standards, including but not limited to fossil fuels, firearms, and healthcare services related to gender and abortion.
SB 980 has the potential to ignite controversy due to its implications on diversity, equity, and inclusion (DEI) initiatives. The bill explicitly outlaws considering DEI classifications when determining contractual relationships between private businesses. This aspect has been contentious, as critics argue it undermines efforts to promote workplace diversity and social responsibility in business practices. The proposed legislation could lead to significant backlash from advocates for equality who view such restrictions as a step back in achieving more inclusivity within the workforce and corporate governance. Overall, SB 980 raises critical questions about the balance between economic policy and social ethics in the realm of public contracting.