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. Provisions that would void a contract include those requiring the state to indemnify another party, imposing unknown vendor terms, limiting the state's right to legal representation, or mandating arbitration outside of state courts. Additionally, the bill specifies that contracts must not include terms that impose confidentiality on payment information, require state agencies to pay attorney fees in disputes, or obligate them to accept risk of loss before receiving goods.

Furthermore, the bill mandates that all state agency vendor contracts include provisions that specify Iowa law as the governing law and require litigation to occur in Iowa courts. The director of the Department of Administrative Services (DAS) is granted the authority to waive these requirements if a necessary good or service cannot be procured due to the restrictions imposed by the bill. This legislation will apply to contracts entered into or renewed on or after July 1, 2026.