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 state agency 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 specifies that contracts must not include terms that impose confidentiality on payment information or that require the state to accept risk of loss before receiving goods.

Furthermore, the bill mandates that all state agency vendor contracts will automatically include provisions that establish Iowa law as the governing law and designate appropriate state or federal courts in Iowa as the venue for any litigation. The director of the Department of Administrative Services (DAS) is granted the authority to waive these requirements if it is determined that a necessary good or service cannot be procured due to these stipulations. The bill will apply to contracts entered into or renewed on or after July 1, 2026.