The bill establishes new regulations regarding state purchasing contracts, specifically outlining prohibited and required terms for contracts entered into by state agencies. It introduces a new section, 8A.311C, which lists provisions that, if included in a contract, would be considered void due to public policy concerns. 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 enforce confidentiality on contract terms, among others. Additionally, the bill introduces section 8A.311D, which mandates that all state agency vendor contracts must include specific terms, such as being governed by Iowa law and stipulating that litigation must occur in Iowa courts.

Furthermore, the bill allows for a waiver of these requirements under section 8A.311E if the director determines that a necessary good or service cannot be procured due to the stipulated requirements. The agency must demonstrate that failure to procure the good or service would result in significant harm to state operations and that all reasonable alternatives have been exhausted. The bill applies to contracts entered into or renewed after its effective date, ensuring that these new regulations are implemented moving forward.