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 void due to being contrary to public policy. 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 include provisions that specify Iowa law as the governing law and designate appropriate Iowa courts for litigation.

Furthermore, the bill allows for waivers of the requirements set forth in sections 8A.311C and 8A.311D if the director determines that a necessary good or service cannot be procured due to these requirements. The state agency must demonstrate that failure to procure the good or service would result in significant harm to state operations and that all reasonable steps to find alternatives have been exhausted. The bill applies to contracts entered into or renewed after its effective date.