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SECOND REGULAR SESSION
SENATE BILL NO. 1375
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR WASHINGTON.
4250S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 37.020, RSMo, and to enact in lieu thereof seven new sections relating to state
contracts.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 37.020, RSMo, is repealed and seven 1
new sections enacted in lieu thereof, to be known as sections 2
37.020, 37.760, 37.762, 37.764, 37.766, 37.768, and 37.770, to 3
read as follows:4
37.020. 1. As used in this section, the following 1
words and phrases mean: 2
(1) "Certification", the determination, through 3
whatever procedure is used by the office of administration, 4
that a legal entity is a socially and economically 5
disadvantaged small business concern for purposes of this 6
section; 7
(2) "Department", the office of administration and any 8
public institution of higher learning in the state of 9
Missouri; 10
(3) "Minority business enterprise", a business that is: 11
(a) A sole proprietorship owned and controlled by a 12
minority; 13
(b) A partnership or joint venture owned and 14
controlled by minorities in which at least fifty-one percent 15
of the ownership interest is held by minorities and the 16
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management and daily business operations of which are 17
controlled by one or more of the minorities who own it; or 18
(c) A corporation or other entity whose management and 19
daily business operations are controlled by one or more 20
minorities who own it, and which is at least fifty-one 21
percent owned by one or more minorities, or if stock is 22
issued, at least fifty-one percent of the stock is owned by 23
one or more minorities; 24
(4) "Socially and economically disadvantaged 25
individuals", individuals, regardless of gender, who have 26
been subjected to racial, ethnic, or sexual prejudice or 27
cultural bias because of their identity as a member of a 28
group without regard to their individual qualities and whose 29
ability to compete in the free enterprise system has been 30
impaired due to diminished capital and credit opportunities 31
as compared to others in the same business area. In 32
determining the degree of diminished credit and capital 33
opportunities the office of administration shall consider, 34
but not be limited to, the assets and net worth of such 35
individual; 36
(5) "Socially and economically disadvantaged small 37
business concern", any small business concern: 38
(a) Which is at least fifty-one percentum owned by one 39
or more socially and economically disadvantaged individuals; 40
or, in the case of any publicly owned business, at least 41
fifty-one percentum of the stock of which is owned by one or 42
more socially and economically disadvantaged individuals; and 43
(b) Whose management and daily business operations are 44
controlled by one or more of such individuals; 45
(6) "Women's business enterprise", a business that is: 46
(a) A sole proprietorship owned and controlled by a 47
woman; 48
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(b) A partnership or joint venture owned and 49
controlled by women in which at least fifty-one percent of 50
the ownership interest is held by women and the management 51
and daily business operations of which are controlled by one 52
or more of the women who own it; or 53
(c) A corporation or other entity whose management and 54
daily business operations are controlled by one or more 55
women who own it, and which is at least fifty-one percent 56
owned by women, or if stock is issued, at least fifty-one 57
percent of the stock is owned by one or more women. 58
2. The office of administration, in consultation with 59
each department, shall establish and implement a plan to 60
increase and maintain the participation of certified 61
socially and economically disadvantaged small business 62
concerns or minority business enterprises, directly or 63
indirectly, in contracts for supplies, services, and 64
construction contracts, consistent with goals determined 65
after an appropriate study conducted to determine the 66
availability of socially and economically disadvantaged 67
small business concerns and minority business enterprises in 68
the marketplace. Such study shall be completed by December 69
31, 2028. The commissioner of administration shall appoint 70
an oversight review committee to oversee and review the 71
results of such study. The committee shall be composed of 72
nine members, four of whom shall be members of business, 73
three of whom shall be from staff of selected departments, 74
one of whom shall be a member of the house of 75
representatives, and one of whom shall be a member of the 76
senate. 77
3. The goals to be pursued by each department under 78
the provisions of this section shall be construed to overlap 79
with those imposed by federal law or regulation, if any, 80
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shall run concurrently therewith and shall be in addition to 81
the amount required by federal law only to the extent the 82
percentage set by this section exceeds those required by 83
federal law or regulations. 84
4. The commissioner of administration may designate a 85
nonprofit organization as a minority business enterprise or 86
women's business enterprise for the exclusive purpose of 87
competing in other states, provided that the organization is 88
headquartered in Missouri and the collective majority of the 89
organization's board of directors and executive management 90
in charge of daily business operations are minorities or 91
women. 92
37.760. As used in sections 37.760 to 37.770, the 1
following terms mean: 2
(1) "Agency", any state department or any division or 3
branch thereof, or any bureau, board, commission, 4
institution, officer or office of the state of Missouri; 5
(2) "Commissioner", the commissioner of administration 6
appointed under section 37.010; 7
(3) "Committee", the minority business enterprise and 8
women's business enterprise oversight review committee 9
created under section 37.762; 10
(4) "Minority business enterprise", the same meaning 11
as defined in section 37.020; 12
(5) "Women's business enterprise", the same meaning as 13
defined in section 37.020. 14
37.762. 1. There is hereby established the "Minority 1
Business Enterprise and Women's Business Enterprise 2
Oversight Review Committee". The committee shall consist of 3
seven members. The governor shall appoint four members to 4
the committee, two of whom shall represent the interests of 5
the minority community in this state, and two of whom shall 6
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represent the interests of business owners in this state. 7
The speaker of the house of representatives shall appoint 8
one member of the committee from the house of 9
representatives. The president pro tempore of the senate 10
shall appoint one member from the senate. The commissioner 11
shall be an ex officio member of the committee. 12
2. The committee shall conduct a new study, in 13
addition to the study required by subsection 2 of section 14
37.020, to ensure participation from socially and 15
economically disadvantaged minority or women's business 16
enterprises. Such study shall be completed by December 31, 17
2027. 18
37.764. Members of the committee shall not be 1
compensated for their services, but they shall be reimbursed 2
for actual and necessary expenses incurred in the 3
performance of their duties. The members of the committee 4
shall elect one member as chair and one member as vice chair 5
who shall serve as chair in the absence of the chair. Each 6
member shall serve for a term of two years and may be 7
reappointed for an additional term of two years. The office 8
of administration shall provide staff to the committee and 9
aid it in the performance of its duties. 10
37.766. The specific duties of the committee shall 1
include, but not be limited to, the following: 2
(1) Compiling a database of minority business 3
enterprises and women's business enterprises, certified 4
under section 37.023, that have participated, directly or 5
indirectly, in contracts for supplies, services, and 6
construction with any agency of this state, and making such 7
database available to all agencies; 8
(2) Making recommendations to agencies for 9
implementation of a system to alert minority business 10
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enterprises and women's business enterprises, certified 11
under section 37.023, of upcoming contracts for supplies, 12
services, and construction; 13
(3) Establishing requirements for parties to contract 14
with agencies for supplies, services, or construction that 15
need subcontractors to notify potential subcontractors who 16
are minority business enterprises and women's business 17
enterprises, certified under section 37.023, of the party's 18
need for a subcontractor. Such requirements shall include, 19
but not be limited to: 20
(a) Written notification sent to the certified 21
minority business enterprise or women's business 22
enterprise's principal place of business; and 23
(b) Maintaining records of the notifications sent 24
under paragraph (a) of this subdivision; and 25
(4) Proposing sanctions for parties failing to comply 26
with any requirements established under subdivision (3) of 27
this section. 28
37.768. 1. The office of administration shall enforce 1
the requirements developed by the committee under 2
subdivision (3) of section 37.766. 3
2. The office of administration shall promulgate rules 4
necessary for the enforcement of such requirements and 5
necessary to aid the committee in performing its duties 6
under section 37.766. Any rule or portion of a rule, as 7
that term is defined in section 536.010, that is created 8
under the authority delegated in this section shall become 9
effective only if it complies with and is subject to all of 10
the provisions of chapter 536 and, if applicable, section 11
536.028. This section and chapter 536 are nonseverable and 12
if any of the powers vested with the general assembly 13
pursuant to chapter 536 to review, to delay the effective 14
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date, or to disapprove and annul a rule are subsequently 15
held unconstitutional, then the grant of rulemaking 16
authority and any rule proposed or adopted after August 28, 17
2026, shall be invalid and void. 18
37.770. Under section 23.253 of the Missouri sunset 1
act: 2
(1) The provisions of the new program authorized under 3
sections 37.760 to 37.768 shall automatically sunset six 4
years after the effective date of sections 37.760 to 37.768 5
unless reauthorized by an act of the general assembly; 6
(2) If such program is reauthorized, the program 7
authorized under sections 37.760 to 37.768 shall 8
automatically sunset twelve years after the effective date 9
of the reauthorization of sections 37.760 to 37.768; and 10
(3) This section shall terminate on September first of 11
the calendar year immediately following the calendar year in 12
which the program authorized under sections 37.760 to 37.768 13
is sunset. 14
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