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 binding dispute resolution processes. Additionally, the bill addresses issues such as confidentiality of contract terms, payment obligations, and ownership of intellectual property developed with federal funding.

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