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Senate
File
2206
-
Introduced
SENATE
FILE
2206
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
3030)
A
BILL
FOR
An
Act
relating
to
contracts
entered
into
by
state
agencies
and
1
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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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.
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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
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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
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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).
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