FIRST REGULAR SESSION
SENATE BILL NO. 338
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR MOON.
1057S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapters 30 and 34, RSMo, by adding thereto two new sections relating to public
contracts, with a severability clause.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapters 30 and 34, RSMo, ar e 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
state treasurer and a financial institution to provide 4
banking 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 activi ties 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, sa le, 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 338 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, organization, 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, m ajority-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 338 3
2. (1) The state treasurer shall create and maintain 50
a 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 s tate treasurer for the 53
purpose of determining which financial institutions to enter 54
into a banking contract with. 55
(2) The state treasurer shall publicly post the 56
restricted financial institution list on the state 57
treasurer's website and submit a copy of the list to the 58
governor, the president pro tempore of the senate, and the 59
speaker of the house of 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 state treasurer shall update the restricted 66
financial institution list annually, or more often if the 67
state treasurer considers it necessary. 68
3. (1) At least forty-five days prior to including a 69
financial institution on the restricted financial 70
institution list, the state treasurer shall send a written 71
notice to the institution containing the following 72
information: 73
(a) That the state treasurer has determined that the 74
financial institution is a restricted financial institution; 75
(b) That the financial institution shall be placed on 76
the restricted finan cial institution list in forty -five days 77
unless, within thirty days following the receipt of the 78
written notice, the financial institution demonstrates that 79
it is not engaged in a boycott; 80 SB 338 4
(c) That the restricted financial institution list is 81
published on the state treasurer's website; and 82
(d) That the financial institution's placement on the 83
list may render the financial institution ineligible to 84
enter into, or remain in, banking contracts with the state. 85
(2) Following a financial i nstitution's inclusion on 86
the restricted financial institution list, the state 87
treasurer shall remove the financial institution from the 88
list if the financial institution demonstrates that it has 89
ceased all boycotts. 90
4. (1) In determining whethe r to include a financial 91
institution on the restricted financial institution list, 92
the state treasurer shall consider and may rely upon the 93
following information: 94
(a) A financial institution's certification that it is 95
not engaged in a boycott; 96
(b) Publicly available statements or information made 97
by the financial institution, including statements by a 98
member of a financial institution's governing body, an 99
executive director of a financial institution, or any other 100
officer or employee of the financial institution with the 101
authority to issue policy statements on behalf of the 102
financial institution; or 103
(c) Information published by a state or federal 104
government entity. 105
(2) In determining whether to include a financial 106
institution on the restricted financial institution list, 107
the state treasurer may not rely solely on the following 108
information: 109
(a) Statements or complaints by a company; or 110
(b) Media reports of a financial institution's boycott. 111 SB 338 5
(3) A financial institution may not be compelled to 112
produce or disclose any data or information deemed 113
confidential, privileged, or otherwise protected from 114
disclosure by state or federal law. 115
5. (1) In selecting a financial institution to enter 116
into a banking contract, the state treasurer may disqualify 117
restricted financial institutions from the competitive 118
bidding process or from any other official selection process. 119
(2) The state treasurer may refuse to enter into a 120
banking contract or an extension of any banking contract 121
with a restricted financial institution based on its 122
restricted financial institution status. 123
(3) The state treasurer may require, as a term of any 124
banking contract, an agreement by the financial institution 125
not to engage in a boycott for the duration of the contract. 126
6. With respect to actions taken in compliance with 127
this section, a public body, public official, public 128
employee, or member or employee of a financial institution 129
shall be immune from any liability. 130
7. No party may take action to penalize or threaten to 131
penalize any financial institution for compliance with this 132
section. Any party taking such action shall have caused 133
harm to this state, including by interfering with the 134
state's sovereign interests in administering its programs 135
and with the state's commercial relationships with financial 136
institutions. 137
8. Any contract subject to this section may be 138
enforced by the attorney general. The attorney general may 139
investigate possible viol ations of this section in the same 140
manner as investigative authority is exercised pursuant to 141
section 407.040. 142 SB 338 6
9. In addition to any other remedies available at law 143
or equity, a company that provides false information to the 144
state treasurer and l ater receives state monies, or violates 145
a contractual agreement with the state not to engage in a 146
boycott, shall be obligated to pay a civil penalty to the 147
state in an amount equal to three times all monies paid to 148
the company by the state for the comp any's goods or services. 149
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 against based on an 6
environmental, social, and governance score. 7
2. For purposes of this section, the term 8
"environmental, social, and governance sco re" means an 9
evaluation conducted by an entity that takes into 10
consideration one or more of the following: 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 standards 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 SB 338 7
Section B. If any provision of section 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
application of such provisions to others or other 4
circumstances shall not be affected thereby. 5