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SF 297 Iowa Senate · 2025-2026 Regular Session

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

SF 297 sets new rules for contracts state agencies in Iowa must use when buying goods or services. It bans 19 specific contract terms that could unfairly burden the state, such as clauses requiring the state to cover a vendor’s legal costs, using foreign law, hiding payment terms, or forcing arbitration. The bill also requires all contracts to follow Iowa law and be litigated in Iowa courts. These rules apply to all state agency contracts signed or renewed after the bill takes effect, directly affecting how state agencies negotiate and manage vendor agreements.
Issues: ✓ Budget & TaxesSupports Budget & TaxesBill prevents state financial burdens by banning costly contract terms, promoting fiscal responsibility in government spending management.85% confidence
Bill status failed 4 of 5 stages cleared
Introduction
Feb 2025
Committee Review
Feb 2025
Senate Passage
Apr 2025
House Passage
May 2025
Governor
Introduced Feb 12, 2025 Last action May 14, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Reprinted · 4 edits
MODERATE
This bill was reprinted from its original introduction to include amendments passed by the Senate. The most significant substantive change is the addition of a new waiver provision (Section 3 of the reprinted version) that allows agency directors to bypass prohibited contract terms if necessary goods or services cannot be procured otherwise. Minor formatting and wording adjustments were also made throughout the document to reflect the amended version.
Scope change
The bill's scope remains focused on state agency purchasing contracts, but the applicability section was slightly modified to clarify that the waiver authority applies when procurement requirements would make obtaining necessary goods or services impossible.
REQUIREMENT

Added a new waiver provision (Section 3 in reprinted version, Section 8A.311E) that allows agency directors to temporarily waive prohibited contract terms when necessary goods or services cannot be procured otherwise, requiring evidence of business interruption and exhaustion of alternatives.

Changed venue language from specifying 'district court of Polk county, Iowa, or the United States district court for the southern district of Iowa' to the more general 'an appropriate state or federal court sitting in Iowa'.

TECHNICAL

Updated the bill's applicability section to clarify it applies to contracts entered into or renewed on or after the effective date, and added explanatory text about the bill's purpose.

Changed the introductory language from 'department of administrative services' to 'department or any other state agency' to align with the broader scope of the bill.

Floor votes · Senate Apr 21, 2025 · House May 8, 2025

How they voted

44–0
Passed · 5 other
Total votes 49
Apr 21, 2025
D Democratic16
14 Yea 2
87% Yea
R Republican33
30 Yea 3
90% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
17
Key actions
3
Committee
1
Amendments
3
May 9, 2025
Introduced
Message from House, with amendment S-3147.
upper
May 8, 2025
Lower · Passed
Passed House, yeas 58, nays 26.
lower
May 8, 2025
Introduced
Amendment H-1295 filed, adopted.
lower
Apr 21, 2025
Upper · Passed
Passed Senate, yeas 45, nays 0.
upper
Apr 21, 2025
Introduced
Amendment S-3115 filed, adopted.
upper
Feb 12, 2025
Upper · Passed
Committee report, approving bill.
upper
Feb 12, 2025
Introduced
Introduced, placed on calendar.
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.