This bill establishes new regulations regarding contracts entered into by state agencies in Iowa, specifically prohibiting certain terms that are deemed contrary to public policy. The bill outlines a list of provisions that, if included in a contract, will be considered void. These prohibited provisions include requirements for the state to indemnify other parties, impose unknown vendor terms, limit the state's right to legal representation, and mandate arbitration or other dispute resolution processes that do not involve the state. Additionally, the bill addresses issues related to confidentiality, payment terms, and ownership of intellectual property developed with federal funding.

Furthermore, the bill mandates that all state agency vendor contracts must include specific terms, such as being governed by Iowa law and stipulating that any litigation must occur in designated courts in Polk County or the Southern District of Iowa. The provisions of this bill will apply to contracts entered into or renewed after its effective date, ensuring that state agencies adhere to these new requirements in their contractual agreements.