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 terms 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 includes a new section, 8A.311D, mandating that all state agency vendor contracts must be governed by Iowa law and stipulate that any litigation must occur in Iowa courts.

Furthermore, the bill allows for waivers of these requirements under certain circumstances through a new section, 8A.311E. If the director of a state agency determines that a necessary good or service cannot be procured due to the requirements set forth in sections 8A.311C or 8A.311D, they may waive these requirements to facilitate procurement. 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.