All Roll Calls
Yes: 135 • No: 3
IowaHF 250091st General Assembly (2025–2026)HouseWALLET
A bill for an act relating to contracts entered into by state agencies and including applicability provisions. (Formerly HSB 583.) Effective date: 07/01/2026. Applicability date: 07/01/2026.
Sponsored By: COMMITTEE ON STATE GOVERNMENT
Signed by Governor
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Clear, open terms in state contracts
Vendors cannot hide an entire contract behind confidentiality. Payment terms and pricing are not confidential unless a narrow legal exception applies. All terms must be known at signing, and vendors cannot add or change terms later through boilerplate forms or order documents.
Contract disputes stay in Iowa courts
Contracts must use Iowa law and an Iowa state or federal court for disputes. Vendors cannot force binding arbitration or waive the state’s right to a jury. The attorney general represents state agencies, and only the attorney general can agree to settlements that make the state pay. Any term picking foreign law or out‑of‑state courts is void.
Fair rules on renewals, claims, and IP
Vendors cannot require prior notice from an agency to trigger an automatic software renewal; agencies can end a license any time before the renewal date. Vendors cannot shorten the time Iowa law gives the state to bring a claim. Risk of loss stays with the vendor until the agency receives the goods. Contractors cannot take ownership of IP created with federal funds.
Vendors can't shift costs to state
The law voids contract terms that make the state defend or indemnify a vendor or pay a vendor’s legal bills. Agencies cannot be charged unlawful late fees, extra interest, or cancellation fees, and cannot be made to pay a vendor’s taxes. Vendors cannot force the state to buy commercial insurance. These cost‑shifting clauses are unenforceable in state procurement contracts.
Starts July 2026 with narrow waivers
Starting July 1, 2026, these rules apply to contracts entered into or renewed on or after that date. The director can grant a narrow waiver only when a needed good or service cannot be obtained otherwise. Agencies must show likely business interruption or other irreparable harm and that they tried reasonable options first.
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Sponsors & Cosponsors
Sponsor
COMMITTEE ON STATE GOVERNMENT
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/23/2026
Passed Senate
Yes: 47 • No: 0
House vote • 2/24/2026
Passed House
Yes: 88 • No: 3
Actions Timeline
Signed by Governor.
4/16/2026GovernorReported correctly enrolled, signed by Speaker and President, and sent to Governor.
4/16/2026SenateMessage from Senate.
3/23/2026SenateImmediate message.
3/23/2026legislaturePassed Senate, yeas 47, nays 0.
3/23/2026SenateSubstituted for SF 2206.
3/23/2026legislaturePlaced on calendar under unfinished business.
3/19/2026legislatureRead first time, attached to SF 2206.
2/25/2026legislatureMessage from House.
2/25/2026HouseImmediate message.
2/24/2026legislaturePassed House, yeas 88, nays 3.
2/24/2026HouseIntroduced, placed on calendar.
2/16/2026legislature
Bill Text
As Introduced
Enrolled
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