Text of MO SB 588 (2025)

FIRST REGULAR SESSION SENATE BILL NO. 588 103RD GENERAL ASSEMBLY INTRODUCED BY SENATOR HUDSON. 2260S.01I KRISTINA MARTIN, Secretary AN ACT To amend chapter 34, RSMo, by adding thereto one new section relating to public 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 1 one new section, to be known as section 34.615, to read as 2 follows: 3 34.615. 1. As used in this section, the following 1 terms shall mean: 2 (1) "Company", a for-profit organization, association, 3 corporation, partnership, joint venture, limited 4 partnership, limited liability partnership, or limited 5 liability company, including a wholly owned subsidiary, 6 majority-owned subsidiary, parent company, or affiliate of 7 those entities or business associations. For the purposes 8 of this section, "company" does not include sole 9 proprietorships; 10 (2) "Economic boycott", when a company, without an 11 ordinary business purpose, refuses to deal with, terminates 12 business activities with, or otherwise takes any commercial 13 action that is intended to penalize, inflict economic harm 14 on, limit commercial relations with, or change or limit the 15 activities of another company because the company, without 16 violating controlling federal or state law: 17 SB 588 2 (a) Engages in the exploration, production, 18 utilization, transportation, sale, or manufacturing of, 19 fossil fuel-based energy, timber, mining, or agriculture; 20 (b) Engages in, facilitates, or supports the 21 manufacture, import, distribution, sale, or lawful use of 22 firearms, ammunition, or component parts and accessories of 23 firearms and ammunition; 24 (c) Does not meet, is not expected to meet, or does 25 not commit to meet environmental standards or disclosure 26 criteria, in particular to eliminate, reduce, offset, or 27 disclose greenhouse gas emissions; 28 (d) Does not meet, is not expected to meet, or does 29 not commit to meet corporate board or employment, 30 composition, compensation, or disclosure criteria that 31 incorporates characteristics protected pursuant to chapter 32 213; 33 (e) Does not facilitate, is not expected to 34 facilitate, or does not commit to facilitate access to 35 abortion, sex or gender change, or transgender surgery; or 36 (f) Does business with a company described in 37 paragraphs (a) through (e) of this paragraph; 38 (3) "Governmental entity", any department, agency, 39 division, board, or commission of the state of Missouri; 40 (4) "Ordinary business purpose", an action by a 41 company that does not include any purpose to further social, 42 political, or ideological interests. A company may 43 reasonably be determined to have taken an action with a 44 purpose to further social, political, or ideological 45 interests based upon evidence indicating such a purpose 46 including, but not limited to: 47 SB 588 3 (a) Branding, advertising, statements, explanations, 48 reports, letters to clients, communications with portfolio 49 companies, statements of principles, or commitments; or 50 (b) Participation in, affiliation with, or status as a 51 signatory to any coalition, initiative, joint statement of 52 principles, or agreement. 53 2. This section shall apply only to a contract that: 54 (1) Is between a governmental entity and a company 55 with ten or more full-time employees; and 56 (2) Is valued at fifty thousand dollars or more over 57 the term of the contract that is to be paid wholly or 58 partially from public funds of the governmental entity, 59 provided that the provisions of this subsection shall apply 60 separately to all companies in a multiple party contract. 61 3. Except as provided by subsection 4 of this section, 62 a governmental entity shall not enter into a contract with a 63 company for goods or services unless the contract contains a 64 written verification from the company that it: 65 (1) Does not currently engage in any economic 66 boycotts; and 67 (2) Will not engage in any economic boycotts during 68 the term of the contract. 69 4. The provision of subsection 3 of this section shall 70 not apply to a governmental entity that determines the 71 requirements of subsection 3 of this section: 72 (1) Are inconsistent with the governmental entity's 73 constitutional or statutory duties related to the issuance, 74 incurrence, or management of debt obligations or the 75 deposit, custody, management, borrowing, or investment of 76 funds; or 77 SB 588 4 (2) Prevent the governmental entity from obtaining the 78 supplies or services to be provided in an economically 79 practicable manner. 80 5. No party shall take action to penalize or threaten 81 to penalize any financial institution for compliance with 82 this section. Any party taking such action shall have 83 caused harm to this state, including by interfering with the 84 state's sovereign interests in administering its programs 85 and with the state's commercial relationships with its 86 financial institutions. 87 6. This section or any contract subject to this 88 section may be enforced by the attorney general. If the 89 attorney general has reasonable cause to believe that a 90 company has engaged in, is engaging in, or is about to 91 engage in a violation of this section, he or she may: 92 (1) Require such company to file a statement or report 93 in writing, under oath, as to all the facts and 94 circumstances concerning the violation and such other data 95 and information as he or she may deem necessary; 96 (2) Examine under oath any person in connection with 97 the violation; 98 (3) Examine any record, book, document, account, or 99 paper as he or she may deem necessary; and 100 (4) Pursuant to an order of the circuit court of Cole 101 County, impound any record, book, document, account, paper, 102 or sample or material relating to such violation and retain 103 such item until the completion of all proceedings under this 104 section or in the circuit court of Cole County. 105 7. In addition to any other remedies available at law 106 or equity, a company that enters into a contract with a 107 government entity containing any verifications required by 108 subsection 3 of this section and engages in any economic 109 SB 588 5 boycott during the term of the contract shall be obligated 110 to pay damages to the state in an amount equal to three 111 times all moneys paid to the company under the contract. 112 