FIRST REGULAR SESSION SENATE BILL NO. 272 103RD GENERAL ASSEMBLY INTRODUCED BY SENATOR BLACK. 1026S.01I KRISTINA MARTIN, Secretary AN ACT To amend chapters 34 and 431, RSMo, by adding thereto two new sections relating to prohibited business practices of entities doing business in this state, with penalty provisions. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Chapters 34 and 431, RSMo, are amended by 1 adding thereto two new sections, to be known as sections 34.650 2 and 431.205, to read as follows:3 34.650. 1. A public entity shall not enter into a 1 contract with a company to acquire or dispose of services, 2 supplies, information technology, or construction unless the 3 contract includes a written certification that the company 4 is not currently engaged in and shall not, for the duration 5 of the contract, engage in any kind of economic boycott. 6 This section shall not apply to contracts with a total 7 potential value of less than one hundred thousand dollars or 8 to contractors with fewer than ten employees. 9 2. As used in this section, the following terms and 10 phrases mean: 11 (1) "Company", any for-profit or not-for-profit 12 organization, association, corporation, partnership, joint 13 venture, limited partnership, limited liability partnership, 14 limited liability company, or other entity or business 15 association, including all wholly owned subsidiaries, 16 majority-owned subsidiaries, parent companies, or affiliates 17 of those entities or business associations; 18 SB 272 2 (2) "Economic boycott", refusing to deal with, 19 terminating business activities with, or otherwise taking 20 any commercial action that is intended to penalize, inflict 21 economic harm on, limit commercial relations with, or change 22 or limit the activities of a company because the company, 23 without violating controlling federal or state law: 24 (a) Engages in the exploration, production, 25 utilization, transportation, sale, or manufacturing of, 26 fossil fuel-based energy, timber, mining, or agriculture; 27 (b) Engages in, facilitates, or supports the 28 manufacture, import, distribution, marketing or advertising, 29 sale, or lawful use of firearms, ammunition, or component 30 parts and accessories of firearms or ammunition; 31 (c) Does not meet, is not expected to meet, or does 32 not commit to meet environmental standards or disclosure 33 criteria, in particular to elimin ate, reduce, offset, or 34 disclose greenhouse gas emissions; 35 (d) Does not meet, is not expected to meet, or does 36 not commit to meet any specified criteria with respect to 37 the compensation and composition of the company's corporate 38 board and the employees of the company; 39 (e) Does not facilitate, is not expected to 40 facilitate, or does not commit to facilitate access to 41 abortion, sex or gender change, or transgender surgery or 42 medical treatments; or 43 (f) Does business with a company that engages in or 44 does not meet one or more of the criteria listed in 45 paragraphs (a) to (e) of this subdivision. 46 (3) "Public entity", the state of Missouri or any 47 political subdivision thereof, including all boards, 48 commissions, agencies, institution s, authorities, and bodies 49 SB 272 3 politic and corporate of the state created by or in 50 accordance with state law or regulations. 51 3. Any contract that fails to comply with the 52 provisions of this section shall be void against public 53 policy. 54 4. (1) This section, or any contract subject to this 55 section, may be enforced by the attorney general. 56 (2) If the attorney general has reasonable cause to 57 believe that a person has engaged in, is engaging in, or is 58 about to engage in, a violation of this section, he or she 59 may: 60 (a) Require such person to file on such forms as the 61 attorney general prescribes a statement or report in 62 writing, under oath, as to all the facts and circumstances 63 concerning the violation, and such other data and 64 information as deemed necessary; 65 (b) Examine under oath any person in connection with 66 the violation; 67 (c) Examine any record, book, document, account, or 68 paper as deemed necessary; and 69 (d) Pursuant to an order of a circuit court, impound 70 any record, book, document, account, paper, sample, or 71 material relating to such practice and retain the same in 72 his or her possession until the completion of all 73 proceedings undertaken under this section or in the courts. 74 (3) In addition to any other remedies available at law 75 or equity, a company that enters into a contract with a 76 public entity that is subject to this section and engages in 77 any economic boycott during the term of the contract shall 78 be obligated to pay damages to the state in an am ount equal 79 to three times all monies paid to the company under the 80 contract. 81 SB 272 4 5. (1) Any person injured as a result of any 82 violation or threatened violation of this section shall have 83 a cause of action in the circuit court of Cole County and 84 shall be entitled to injunctive relief against any and all 85 violators or persons threatening violations. 86 (2) Any person injured as a result of any violation or 87 threatened violation of this section may recover any and all 88 damages of any character resul ting from such violation or 89 threatened violation including costs and reasonable attorney 90 fees. Such remedies shall be independent of and in addition 91 to the other penalties and remedies prescribed under this 92 section. 93 6. The commissioner of admini stration may promulgate 94 regulations to implement the provisions of this section, so 95 long as they are consistent with this section and do not 96 create any exceptions. Any rule or portion of a rule, as 97 that term is defined in section 536.010, that is crea ted 98 under the authority of this section shall become effective 99 only if it complies with and is subject to all of the 100 provisions of chapter 536 and, if applicable, section 101 536.028. This section and chapter 536 are nonseverable and 102 if any of the powers vested with the general assembly 103 pursuant to chapter 536 to review, to delay the effective 104 date, or to disapprove and annul a rule are subsequently 105 held unconstitutional, then the grant of rulemaking 106 authority and any rule proposed or adopted after Au gust 28, 107 2025, shall be invalid and void. 108 431.205. 1. It shall be an unlawful business practice 1 for any private business, in entering into, maintaining, or 2 seeking to establish contractual relations with any other 3 private business to: 4 SB 272 5 (1) Fail or refuse to enter into a contract, maintain 5 a contract, or entertain bids or offers to contract, based, 6 in whole or in part, on the fact that the other private 7 business: 8 (a) Does not provide information or data, or does not 9 provide sufficient information or data, about the extent to 10 which its workforce or ownership exhibit particular DEI 11 classifications; or 12 (b) Fails to satisfy any rule, standard, policy, goal, 13 aspiration, or preference, whether express or implied, 14 regarding the extent to which its workforce, managers, 15 executives, or ownership exhibit or claim to exhibit 16 particular DEI classifications; 17 (2) (a) Consider: 18 a. Whether the owners, controllers, officers, or 19 employees of the other private busi ness exhibit or claim to 20 exhibit particular DEI classifications; or 21 b. Whether the other private business has adopted or 22 endorsed any particular policy or practice that promotes the 23 hiring and promotion of employees based on the fact that 24 those employees or prospective employees exhibit or claim to 25 exhibit particular DEI classifications; 26 (b) The act of considering one of the factors 27 described in paragraph (a) of this subdivision shall be an 28 unlawful business practice pursuant to this sect ion if it 29 meets any of the following: 30 a. If it is only one criterion among many other 31 criteria; 32 b. If it is treated as a dispositive criterion in 33 making a decision; and 34 c. If it is part of an express or implied scoring or 35 grading system; 36 SB 272 6 (3) Require or suggest that individuals exhibiting 37 particular DEI classifications, because of their DEI 38 classifications, work on the contract or have particular 39 roles in performing the contract, or require or suggest that 40 a particular quota o r percentage of individuals working on 41 the performance of a contract exhibit one or more particular 42 DEI classifications; or 43 (4) Require or suggest that any other contracting 44 party provide data regarding the extent to which its 45 workforce, managers, executives, or ownership exhibit or 46 claim to exhibit particular DEI classifications. 47 2. For purposes of this section, the following terms 48 mean: 49 (1) "Private business", any individual, partnership, 50 company, or corporation engaging in commer ce, manufacturing, 51 or services; 52 (2) "DEI classifications", race, ethnicity, 53 nationality, socioeconomic status, sex, sexual orientation, 54 gender, or gender identity. 55 3. The act of requesting information from a current or 56 prospective contracti ng party that is related to DEI 57 classifications is not alone sufficient to establish a 58 violation of this section, but may provide circumstantial 59 evidence of a violation. 60 4. This section shall apply: 61 (1) To any act relating to a contract that is 62 solicited, bid, negotiated, or to be substantially performed 63 in Missouri; or 64 (2) To any party to a contract, solicitation, or bid 65 that is incorporated under the laws of Missouri or that has 66 its principal place of business in Missouri. 67 5. This section shall not apply: 68 SB 272 7 (1) To the decision to employ an individual or to 69 discharge an individual from employment; 70 (2) To any depository institution, trust company, 71 licensee, or person subject to the jurisdiction of the 72 United States Securities Exchange Commission, Federal 73 Reserve, Office of the Comptroller of the Currency, or 74 Federal Deposit Insurance Corporation, or the Missouri 75 securities division within secretary of state; 76 (3) To any action of a private business necessary to 77 comply with an order or judgment from any federal court 78 enforcing any provision of federal law; and 79 (4) To any action of a private business necessary to 80 comply with the requirements of federal law pertaining to 81 businesses that: 82 (a) Enter into contracts with the federal government; 83 or 84 (b) Enter into other public contracts. 85 6. (1) A civil action for violation of this section 86 may be brought in any circuit court in any county in which 87 the unlawful business practice is alleged to have been 88 committed. 89 (2) Any action brought in court pursuant to this 90 section shall be filed within two years after the alleged 91 unlawful business practice occurred or its reasonable 92 discovery by the alleged injured party. 93 (3) The court may grant as relief, as it deems 94 appropriate, any permanent or temporary injunction, 95 temporary restraining order, or other order, and may award 96 to the plaintiff actual and punitive damages, and may award 97 court costs and reasonable attorney fees to the prevailing 98 party, other than a state agency or commission or a local 99 commission. A prevailing respondent may be awarded 100 SB 272 8 reasonable attorney fees only upon a showing that the case 101 was without foundation. 102 (4) Any party to any action initiated unde r this 103 section has a right to a trial by jury. 104 (5) In any civil action brought pursuant to this 105 section, the plaintiff shall bear the burden of proving the 106 alleged unlawful practice was the direct proximate cause of 107 the claimed damages. 108 7. Whenever the attorney general has a reasonable 109 cause to believe that any private business or group of 110 private businesses is engaged in an unlawful business 111 practice prohibited by this section, any or all of the 112 following actions may be taken: 113 (1) A civil investigative demand may be issued to any 114 person who may have relevant information. Any civil 115 investigative demand shall be issued in the same manner 116 required by section 407.040 and shall be subject to the same 117 requirements and restrictions a s are required by sections 118 407.005 to 407.315, to the extent such requirements and 119 restrictions are not inconsistent with this section; 120 (2) A civil action may be brought in the circuit court 121 of Cole County by filing a complaint setting forth the f acts 122 and requesting any one or more of the following remedies: 123 (a) Preventive relief, including, but not limited to, 124 an application for a permanent or temporary injunction, 125 restraining order, or other order against the person or 126 persons responsible for such unlawful business practice; 127 (b) Civil penalties in the amount of ten thousand 128 dollars per violation; and 129 (c) The award of the costs of investigation. 130