AN ACT to amend and reenact subsection 5 of section 32-12.2-15 of the North Dakota Century Code, relating to contracts limiting liability to the state.

69th Legislative Assembly (2025-26)

ND SB 2072 lets agencies buy routine products with adhesive terms up to $20,000 after AG/OMB risk review, if no improper liability risk and loss can be managed.

Filed with Secretary Of State 03/18

Purpose / intent

SB 2072 clarifies and expands when a state agency may purchase commercially available “routine or standardized” products that include adhesive contract terms (for example, shrink‑wrap, third‑party end‑user license agreements, or click‑through agreements) even if those terms are not fully consistent with the State’s statutory limits on liability. The bill aims to streamline routine procurements while retaining a required risk review.

Key provisions

Agencies are authorized to buy routine or standardized products that include adhesive contract terms inconsistent with § 32‑12.2‑15 if, after consulting with the Attorney General’s office and the Office of Management and Budget (OMB), the agency determines:

The purchase poses no reasonable risk that an improper contractual obligation will be imposed on the agency; and
There is no risk of loss that cannot be limited under the statute given the product’s intended use, including consideration of data and system security.

“Routine or standardized products” are defined as commercially available products to the public that do not exceed the specified cost threshold. The text of the bill replaces the prior monetary cap (rendered as “one thousand”) with a higher cap (rendered in the bill as “twenty thousand”), i.e., an increase from $1,000 to $20,000 appears intended.

Covered adhesive contract forms are explicitly listed: shrink‑wrap documents, third‑party end user license agreements, and click‑through agreements.

Who is affected

State agencies and their procurement officers (more flexibility for small, off‑the‑shelf purchases).

Attorney General’s office and OMB (must be consulted as part of the approval process).

Vendors and commercial suppliers of off‑the‑shelf software, services, and products that attach adhesive terms.

Indirectly affects legal/risk management practices at agencies (must document risk determinations).

Procedural status / timeline

Introduced in the Senate (State and Local Government Committee) and passed both chambers (Senate vote 46–0; House vote 91–0).

Signed by the Governor and filed with the Secretary of State on March 18, 2025. (Check official codification for the precise effective date; signature and filing suggest immediate or near‑term effect unless the bill specifies otherwise.)

Practical impact / considerations

Pros: Streamlines procurement of widely used, low‑cost commercial products; reduces negotiation overhead for standard items (especially software/subscription purchases) while requiring a formal risk check.

Cons / risks: If risk assessments or consultations are cursory, the State could accept unfavorable liability or indemnity language. The bill requires agencies to consider data and systems security, but effective risk assessment practices and documentation will be important to limit exposure.

Agencies should update procurement policies and train staff on the required consultation and documentation steps for purchases made under this authority.

Bill