S.F. 2206 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 5342SV (1) 91 sc/ns 1/ 4

S.F. 2206 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 5342SV (1) 91 sc/ns 2/ 4

S.F. 2206 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. NEW SECTION . 8A.311E State purchasing contracts —— 13 waiver. 14 If the director determines that a necessary good or service 15 is impossible to procure due to a requirement of section 16 8A.311C or 8A.311D, the director may waive the requirement 17 to the extent necessary to obtain the good or service. A 18 state agency requesting a waiver shall, at a minimum, provide 19 sufficient evidence showing that the state will suffer an 20 interruption in business operations or other irreparable harm 21 if the state agency cannot procure the good or service, and 22 that the state agency has exhausted all reasonable steps to 23 prevent such harm, including attempting to procure substitute 24 goods or services. The director may require the submission of 25 additional evidence at the director’s discretion. A waiver 26 must be as narrow as possible to allow the procurement of the 27 necessary good or service. 28 Sec. 4. APPLICABILITY. This Act applies to contracts 29 entered into or renewed on or after the effective date of this 30 Act. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill prohibits the inclusion of certain provisions in 35 -3- LSB 5342SV (1) 91 sc/ns 3/ 4

S.F. 2206 contracts entered into by the department of administrative 1 services (DAS) and any other state agency under Code chapter 2 8A, subchapter III, part 2 (purchasing), and declares those 3 provisions void if present in such contracts. The bill also 4 provides that every state agency vendor contract shall be 5 deemed to include provisions requiring the contract to be 6 governed by Iowa law and for litigation related to the contract 7 to be brought and maintained in an appropriate state or federal 8 court sitting in Iowa. 9 The director of DAS may waive a contract requirement of the 10 bill to the extent necessary for the procurement of a necessary 11 good or service, if the director determines the good or service 12 is otherwise impossible to procure. 13 The bill applies to contracts entered into or renewed on or 14 after the effective date of the bill (July 1, 2026). 15 -4- LSB 5342SV (1) 91 sc/ns 4/ 4