SB 815 - This act creates new provisions restricting corporate and public entities from making financial decisions that are not based on pecuniary factors.INVESTMENT OF PUBLIC FUNDS (Sections 30.266 and 30.950)
This act requires written investment policies of the state and each political subdivision to include provisions requiring the investment of public funds to be based solely on pecuniary factors, as defined in the act.
PUBLIC CONTRACTS (Section 34.715)
The act requires all public entities, when engaged in procuring or letting contracts for any purpose, to ensure that bidders, offerors, contractors, or subcontractors are not given preferential treatment or discriminated against based on social, political, or ideological interests. The public entity procuring or letting the contract shall not ask for documentation or any corroborating sources of information relating to any social, political, or ideological interests. Any solicitation for bids shall include a notice to all potential contractors of this provision.
INVESTMENT OF RETIREMENT FUNDS (Section 105.688)
The act requires investment fiduciaries for retirement systems to make investments based solely on pecuniary factors, as defined in the act.
ESG BONDS (Section 108.1100)
All public entities empowered to issue bonds are prohibited from:
· Issuing Environmental, Social, Governance bonds, as that term is defined in the act;
· Using moneys derived from the issuance of bonds to pay for the services of a third-party verifier related to the designation or labeling of bonds as ESG bonds, including, but not limited to, certifying or verifying that bonds may be designated or labeled as ESG bonds, rendering a second-party opinion or producing a verifier's report as to the compliance of proposed ESG bonds with applicable ESG standards and metrics, complying with post-issuance reporting obligations, or other services that are only provided due to the designation or labeling of bonds as ESG bonds; or
· Enter into a contract with any rating agency whose ESG scores for such issuer will have a direct, negative impact on the issuer's bond ratings.
This provisions does not apply to any bonds issued before August 28, 2024, or to any agreement entered into or any contract executed before August 28, 2024.
DISCRIMINATION IN FINANCIAL SERVICES (Section 314.300)
No person or entity shall be denied any services from a financial institution or otherwise discriminated against by such financial institution based upon any of the following:
·
The person or entity's political opinions, speech, or affiliations;
· The person or entity's religious beliefs, religious exercise, or religious affiliations; or
· Any rating, scoring, analysis, tabulation, or action that takes into consideration a social credit score based on certain factors listed in the act.
Not later than August 28, 2025, and every 12 months thereafter, the certified agent of each financial institution shall submit an attestation to the Division of Finance, under penalty of perjury, on a form prescribed by the Division of Finance, whether the financial institution has been in compliance with this provision during the previous 12-month period.
SCOTT SVAGERA