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1329DP

State Purchasing Contracts, Prohibited Terms (1329DP) - Administrative Services, Department of

2025-2026 Regular Session

Bill 1329DP protects Iowa by banning harmful contract terms for state agencies, ensuring fair agreements and transparency while safeguarding taxpayer interests.

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Bill Summary · 1329DP

Summary of Bill 1329DP: State Purchasing Contracts, Prohibited Terms

Bill Number: 1329DP
Introduced: November 19, 2025
Status: Proposed Bill
Classification: Legislative Proposal

Purpose and Intent

Bill 1329DP aims to establish clear guidelines regarding the terms that can be included in contracts entered into by state agencies in Iowa. The bill seeks to protect the state from potentially harmful contractual obligations that could violate public policy or state law. By prohibiting certain provisions and mandating others, the bill intends to ensure that state contracts are fair, transparent, and legally sound.

Key Provisions

Prohibited Terms

The bill specifies a list of provisions that are considered void if included in state agency contracts. These include:

  1. Indemnification Clauses: Provisions requiring the state to defend or indemnify another party.
  2. Unknown Vendor Terms: Terms that can be unilaterally changed by the vendor after signing.
  3. Legal Representation: Restrictions on a state agency's ability to participate in its own defense.
  4. Settlement Authority: Granting authority to anyone other than the attorney general to settle lawsuits involving the state.
  5. Governing Law: Clauses that specify laws of a foreign jurisdiction.
  6. Confidentiality Claims: Blanket confidentiality of contract terms or payment information.
  7. Litigation Venue: Provisions requiring litigation outside of designated Iowa courts.
  8. Attorney Fees: Obligations for the state to pay litigation costs or attorney fees.
  9. Binding Arbitration: Imposing binding arbitration without state determination.
  10. Jury Trial Waivers: Waiving the right to a jury trial.
  11. Late Payment Charges: Charges inconsistent with Iowa law.
  12. Tax Obligations: Obligating the state to pay taxes.
  13. Software License Renewal: Prior notice requirements for automatic renewals.
  14. Risk of Loss: Obligating the state to accept risk before receiving goods.
  15. Insurance Requirements: Mandating commercial insurance for state agencies.
  16. Intellectual Property Ownership: Granting ownership of federally funded intellectual property to contractors.
  17. Limitation on Legal Claims: Shortening the time frame for the state to bring legal claims.
  18. Boilerplate Provisions: Allowing vendors to alter contract terms through standard documents.

Required Terms

The bill mandates that all state agency vendor contracts include the following provisions:

  1. Governing Law: Contracts must be governed by Iowa law.
  2. Venue for Litigation: Any litigation must be conducted in the district court of Polk County, Iowa, or the United States District Court for the Southern District of Iowa.

Applicability

This bill applies to all contracts entered into or renewed on or after its effective date, ensuring that new contracts adhere to these guidelines.

Impact

The implementation of Bill 1329DP will primarily affect state agencies and their vendors by clarifying acceptable contract terms. It aims to reduce legal risks for the state and promote transparency in state procurement processes. By prohibiting certain provisions, the bill seeks to protect taxpayer interests and uphold the integrity of state contracts.

This summary provides an overview of the essential elements of Bill 1329DP, highlighting its purpose, key provisions, and potential impact on state contracting practices in Iowa.

Compiled from official sources — confirm details with the bill’s official record.

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