Bill > SF297

This bill establishes new regulations for state agency contracts in Iowa, creating three key sections that define prohibited and required contractual terms. The bill prohibits state agencies from entering into contracts with 19 specific types of problematic provisions, such as those that require the state to defend or indemnify another party, allow unilateral vendor changes to contract terms, specify foreign governing laws, claim blanket confidentiality, require binding arbitration, waive jury trial rights, or impose unreasonable financial obligations. Additionally, the bill mandates that all state agency vendor contracts must be governed by Iowa law and that any litigation must be conducted in Iowa state or federal courts. The legislation also provides a waiver mechanism for the director of the state agency to bypass these requirements if a necessary good or service cannot be procured otherwise, but only after demonstrating that the state would suffer significant operational harm. The bill applies to all contracts entered into or renewed on or after its effective date, giving state agencies clear guidelines for future procurement processes and protecting the state from potentially onerous or risky contractual terms.

State Government (Senate)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF297