Missouri HB 1699: Prohibits state contracts with companies that engage in economic boycotts based on environmental, social, or governance criteria

Bill Text

SECOND REGULAR SESSION
HOUSE BILL NO. 1699
102ND GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE SPARKS.
3063H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT
To amend chapter 34, RSMo, by adding thereto one new section relating to state contracts
with certain companies.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 34, RSMo, is amended by adding thereto one new section, to be
2 known as section 34.615, to read as follows:
34.615. 1. As used in this section, the following terms shall mean:
2 (1) "Company", a for-profit organization, association, corporation, partnership,
3 joint venture, limited partnership, limited liability partnership, or limited liability
4 company, including a wholly owned subsidiary, majority-owned subsidiary, parent
5 company, or affiliate of those entities or business associations. For the purposes of this
6 section, "company" does not include sole proprietorships;
7 (2) "Economic boycott", when a company, without an ordinary business
8 purpose, refuses to deal with, terminates business activities with, or otherwise takes any
9 commercial action that is intended to penalize, inflict economic harm on, limit
10 commercial relations with, or change or limit the activities of another company because
11 the company, without violating controlling federal or state law:
12 (a) Engages in the exploration, production, utilization, transportation, sale, or
13 manufacturing of, fossil fuel-based energy, timber, mining, or agriculture;
14 (b) Engages in, facilitates, or supports the manufacture, import, distribution,
15 sale, or lawful use of firearms, ammunition, or component parts and accessories of
16 firearms and ammunition;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

17 (c) Does not meet, is not expected to meet, or does not commit to meet
18 environmental standards or disclosure criteria, in particular to eliminate, reduce, offset,
19 or disclose greenhouse gas emissions;
20 (d) Does not meet, is not expected to meet, or does not commit to meet corporate
21 board or employment, composition, compensation, or disclosure criteria that
22 incorporatescharacteristicsprotectedinthisstateundertheMissourihumanrightsact;
23 (e) Does not facilitate, is not expected to facilitate, or does not commit to
24 facilitate access to abortion, sex or gender change, or transgender surgery; or
25 (f) Does business with a company described in paragraphs (a) through (e) of this
26 paragraph;
27 (3) "Governmental entity", a state agency or political subdivision of this state;
28 (4) "Ordinary business purpose", an action by a company that does not include
29 any purpose to further social, political, or ideological interests. A company may
30 reasonably be determined to have taken an action with a purpose to further social,
31 political, or ideological interests based upon evidence indicating such a purpose
32 including, but not limited to:
33 (a) Branding, advertising, statements, explanations, reports, letters to clients,
34 communications with portfolio companies, statements of principles, orcommitments; or
35 (b) Participation in, affiliation with, or status as a signatory to any coalition,
36 initiative, joint statement of principles, or agreement.
37 2. This section shall apply only to a contract that:
38 (1) Is between a governmental entity and a company with ten or more full-time
39 employees; and
40 (2) Is valued at fifty thousand dollars or more over the term of the contract that
41 is to be paid wholly or partially from public funds of the governmental entity, provided
42 that the provisions of this subsection shall apply separately to all companies in a
43 multiple party contract.
44 3. Except as provided by subsection 4 of this section, a governmental entity shall
45 not enter into a contract with a company for goods or services unless the contract
46 contains a written verification from the company that it:
47 (1) Does not currently engage in any economic boycotts; and
48 (2) Will not engage in any economic boycotts during the term of the contract.
49 4. Subsection 3 shall not apply to a governmental entity that determines the
50 requirements of subsection 3 that:
51 (1) Are inconsistent with the governmental entity's constitutional or statutory
52 duties related to the issuance, incurrence, or management of debt obligations or the
53 deposit, custody, management, borrowing, or investment of funds; or
HB 1699 2

54 (2) Prevent the governmental entity from obtaining thesupplies or services to be
55 provided in an economically practicable manner.
56 5. No party shall take action to penalize or threaten to penalize any financial
57 institution for compliance with this section. Any party taking such action shall have
58 caused harm to this state, including by interfering with the state’s sovereign interest