House Study Bill 71 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF ADMINISTRATIVE SERVICES BILL) 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 TLSB 1329DP (2) 91 sc/ns
S.F. _____ H.F. _____ 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 entered into by the department, the department of management or 5 a supported entity pursuant to chapter 8, subchapter XI, or any 6 other state agency. A state agencys contract that includes 7 any of the following provisions shall be interpreted as if the 8 contract did not 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 states 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 contracts 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 the district court of Polk county, Iowa, 34 or the United States district court for the southern district 35 -1- LSB 1329DP (2) 91 sc/ns 1/ 3
S.F. _____ H.F. _____ of Iowa sitting in Des Moines, Iowa. 1 9. A provision that requires a state agency to pay attorney 2 fees, court costs, or other litigation expenses in the event of 3 a contractual dispute. 4 10. A provision that imposes on the state or its agencies 5 binding arbitration or another binding extrajudicial dispute 6 resolution process in which the final resolution is not 7 determined by the state. 8 11. A provision that waives a state agencys right to a jury 9 trial. 10 12. A provision that obligates a state agency to pay a late 11 payment charge not consistent with section 8A.514, interest 12 greater than allowed under section 8A.514 or other applicable 13 law, or any cancellation charge, as such charges constitute 14 pledges of the states credit. 15 13. A provision that obligates a state agency to pay a tax. 16 14. A provision that imposes a prior notice obligation on 17 a state agency as a condition for the automatic renewal of a 18 software license. A state agency may provide notice of its 19 intent to terminate a software license at any time before the 20 renewal date established in the contract. 21 15. A provision that obligates a state agency to accept risk 22 of loss before the receipt of items or goods. 23 16. A provision that obligates a state agency to have 24 commercial insurance. 25 17. A provision that obligates a state agency to grant a 26 contractor full or partial ownership of intellectual property 27 developed pursuant to a state agency contract when the 28 intellectual property is developed in whole or in part using 29 federal funding. 30 18. A provision that limits the time in which the state or 31 its agencies may bring a legal claim under the contract to a 32 period shorter than that provided by Iowa law. 33 19. A boilerplate provision included in a vendors 34 transactional documents, including but not limited to ordering 35 -2- LSB 1329DP (2) 91 sc/ns 2/ 3
S.F. _____ H.F. _____ documents and quotations, that seeks to alter the terms of a 1 state agencys contract or to impose new terms in the contract. 2 Sec. 2. NEW SECTION . 8A.311D State purchasing contracts 3 required terms. 4 All of the following provisions shall be deemed to be 5 included in a state agency vendor contract: 6 1. Governing law. The contract shall be governed by 7 the laws of the state of Iowa, without giving effect to any 8 conflict of laws principles of Iowa law that may require the 9 application of another jurisdictions law. 10 2. Venue. Any litigation commenced in connection with the 11 contract shall be brought and maintained in the district court 12 of Polk county, Iowa, or the United States district court for 13 the southern district of Iowa sitting in Des Moines, Iowa, as 14 appropriate. 15 Sec. 3. APPLICABILITY. This Act applies to contracts 16 entered into or renewed on or after the effective date of this 17 Act. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanations substance by the members of the general assembly. 21 This bill prohibits the inclusion of certain provisions in 22 contracts entered into by the department of administrative 23 services, the department of management or supported entities 24 pursuant to Code chapter 8, subchapter XI (information 25 technology), and any other state agency, and declares those 26 provisions void if present in such contracts. The bill also 27 provides that every state agency vendor contract shall be 28 deemed to include provisions requiring the contract to be 29 governed by Iowa law and for litigation related to the contract 30 to be brought and maintained in the district court of Polk 31 county, Iowa, or the United States district court for the 32 southern district of Iowa sitting in Des Moines, Iowa. 33 -3- LSB 1329DP (2) 91 sc/ns 3/ 3