Certain terms in state procurement contracts prohibited.

A bill for an act

relating to state government; prohibiting certain terms in state procurement

contracts; amending Minnesota Statutes 2025 Supplement, section 16C.05,

subdivision 8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2025 Supplement, section 16C.05, subdivision 8, is amended

to read:

Subd. 8.

Unenforceable terms.

(a) A contract entered into by the state shall not contain

a term that:

(1) requires the state to defend, indemnify, or hold harmless another person or entity,

unless specifically authorized by statute;

(2) binds a party by terms and conditions that may be unilaterally changed by the other

party;

(3) requires mandatory arbitration;

(4) attempts to extend arbitration obligations to disputes unrelated to the original contract;

(5) construes the contract in accordance with the laws of a state other than Minnesota;

(6) obligates state funds in subsequent fiscal years in the form of automatic renewal as

defined in section
325G.56
;
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or
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(7) is inconsistent with chapter 13, the Minnesota Government Data Practices Act
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.
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; or
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(8) limits the ability of the contracting agency to install or run software on infrastructure

of the contracting agency's choosing when such infrastructure is approved or provided by

the Department of Information Technology Services, including but not limited to any

requirement that the contracting agency run software on infrastructure dedicated solely to

the contracting agency.

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(b) If a contract is entered into that contains a term prohibited in paragraph (a), that term

shall be void and the contract is enforceable as if it did not contain that term.

(c) The commissioner shall post a copy of this section on the department's website.