A bill for an act relating to contracts entered into by state agencies and including applicability provisions.

SF 2206 prevents Iowa state agencies from including specific contract terms that could harm the state or violate public policy when purchasing goods or services. It voids 19 prohibited provisions (e.g., requiring the state to cover vendors' legal costs, using foreign law, hiding pricing details, or imposing binding arbitration outside Iowa courts) and mandates that all contracts follow Iowa law and be litigated in Iowa courts. Agencies may request limited waivers for necessary contracts if they prove harm would occur without specific terms, but waivers must be narrowly tailored. The bill applies to contracts entered into or renewed on or after July 1, 2026.