House File 952 - Introduced HOUSE FILE 952 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 71) A BILL FOR An Act relating to state grounds and contracts, including by 1 providing for required and prohibited contract terms and 2 regulating events on the capitol complex, and including 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1329HV (3) 91 sc/ns

H.F. 952 Section 1. NEW SECTION . 8A.311C State purchasing contracts 1 —— prohibited terms. 2 The provisions set forth in this section are void as a matter 3 of law as contrary to public policy if included in a contract 4 for the procurement of goods or services entered into by the 5 department or any other state agency pursuant to this part. 6 A state agency’s contract that includes any of the following 7 provisions shall be interpreted as if the contract did not 8 include the void provision: 9 1. A provision that requires the state or its agencies to 10 defend, indemnify, hold harmless another person, or otherwise 11 assume the debt or liability of another person in violation of 12 Article VII, section 1, of the Constitution of the State of 13 Iowa. 14 2. A provision that seeks to impose vendor terms that 15 are unknown at the time of signing the contract or can be 16 unilaterally changed by the vendor. 17 3. A provision that violates chapter 13 by not allowing 18 a state agency to participate in its own defense through 19 representation by the attorney general. 20 4. A provision that grants to any person other than the 21 attorney general the authority to convey to a court or litigant 22 the state’s consent to any settlement of a suit involving the 23 contract when such settlement could impose liability on the 24 state. 25 5. A provision that specifies that the contract is governed 26 by the laws of a foreign state or nation. 27 6. A provision that claims blanket confidentiality of the 28 contract’s terms. 29 7. A provision that claims that payment terms, including but 30 not limited to cost proposals or other pricing information, of 31 the contract are confidential. 32 8. A provision that authorizes or requires a venue for 33 litigation other than an appropriate state or federal court 34 sitting in Iowa. 35 -1- LSB 1329HV (3) 91 sc/ns 1/ 4

H.F. 952 9. A provision that requires a state agency to pay attorney 1 fees, court costs, or other litigation expenses in the event of 2 a contractual dispute. 3 10. A provision that imposes on the state or its agencies 4 binding arbitration or another binding extrajudicial dispute 5 resolution process in which the final resolution is not 6 determined by the state. 7 11. A provision that waives a state agency’s right to a jury 8 trial. 9 12. A provision that obligates a state agency to pay a late 10 payment charge not consistent with section 8A.514, interest 11 greater than allowed under section 8A.514 or other applicable 12 law, or any cancellation charge, as such charges constitute 13 pledges of the state’s credit. 14 13. A provision that obligates a state agency to pay a tax. 15 14. A provision that imposes a prior notice obligation on 16 a state agency as a condition for the automatic renewal of a 17 software license. A state agency may provide notice of its 18 intent to terminate a software license at any time before the 19 renewal date established in the contract. 20 15. A provision that obligates a state agency to accept risk 21 of loss before the receipt of items or goods. 22 16. A provision that obligates a state agency to have 23 commercial insurance. 24 17. A provision that obligates a state agency to grant a 25 contractor full or partial ownership of intellectual property 26 developed pursuant to a state agency contract when the 27 intellectual property is developed in whole or in part using 28 federal funding. 29 18. A provision that limits the time in which the state or 30 its agencies may bring a legal claim under the contract to a 31 period shorter than that provided by Iowa law. 32 19. A boilerplate provision included in a vendor’s 33 transactional documents, including but not limited to ordering 34 documents and quotations, that seeks to alter the terms of a 35 -2- LSB 1329HV (3) 91 sc/ns 2/ 4

H.F. 952 state agency’s contract or to impose new terms in the contract. 1 Sec. 2. NEW SECTION . 8A.311D State purchasing contracts —— 2 required terms. 3 All of the following provisions shall be deemed to be 4 included in a state agency vendor contract: 5 1. Governing law. The contract shall be governed by 6 the laws of the state of Iowa, without giving effect to any 7 conflict of laws principles of Iowa law that may require the 8 application of another jurisdiction’s law. 9 2. Venue. Any litigation commenced in connection with the 10 contract shall be brought and maintained in an appropriate 11 state or federal court sitting in Iowa. 12 Sec. 3. Section 8A.322, subsection 3, Code 2025, is amended 13 to read as follows: 14 3. a. The director shall establish, publish, and enforce 15 rules regulating and restricting the use by the public of the 16 capitol buildings and grounds and of the state laboratories 17 facility in Ankeny , including for events . The rules when 18 established shall be posted in conspicuous places about the 19 capitol buildings and grounds and the state laboratories 20 facility, as applicable. Any person violating any rule, except 21 a parking regulation, shall be guilty of a simple misdemeanor. 22 b. The rules shall prohibit a person, other than a peace 23 officer, from openly carrying a pistol or revolver in the 24 capitol building and on the grounds surrounding the capitol 25 building including state parking lots and parking garages. 26 However, this subsection paragraph shall not be construed 27 to allow the director to prohibit the lawful carrying, 28 transportation, or possession of any pistol or revolver in the 29 capitol building and on the grounds surrounding the capitol 30 building including state parking lots and parking garages by 31 any person regardless of whether the person has a valid permit 32 to carry weapons. 33 c. The rules shall prohibit a person from holding more 34 than six events per calendar year on the grounds outside the 35 -3- LSB 1329HV (3) 91 sc/ns 3/ 4

H.F. 952 capitol building. The rules shall prohibit the person from 1 holding an event unless the director receives a recommendation 2 for the event by a statewide elected official or by both a 3 member of the Iowa senate and a member of the Iowa house of 4 representatives. 5 Sec. 4. APPLICABILITY. This Act applies to contracts 6 entered into or renewed on or after the effective date of this 7 Act. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill prohibits the inclusion of certain provisions in 12 contracts entered into by the department of administrative 13 services (DAS) and any other state agency under Code chapter 14 8A, subchapter III, part 2 (purchasing), and declares those 15 provisions void if present in such contracts. The bill also 16 provides that every state agency vendor contract shall be 17 deemed to include provisions requiring the contract to be 18 governed by Iowa law and for litigation related to the contract 19 to be brought and maintained in an appropriate state or federal 20 court sitting in Iowa. 21 The bill requires the director of DAS to establish, publish, 22 and enforce rules prohibiting a person from holding more than 23 six events on the grounds outside the capitol building per 24 year. The rules must also prohibit a person from holding such 25 an event unless the director receives a recommendation for the 26 event from a statewide elected official or from a member of 27 each chamber of the general assembly. 28 The bill applies to contracts entered into or renewed on or 29 after the effective date of the bill. 30 -4- LSB 1329HV (3) 91 sc/ns 4/ 4