A bill for an act relating to contracts entered into by state agencies and including applicability provisions.(See HF 952.)

Iowa House Study Bill 71 (HSB71) aimed to standardize and regulate the terms included in contracts entered into by state agencies. The bill sought to prohibit certain provisions deemed contrary to public policy, such as clauses requiring the state to indemnify others, imposing unknown vendor terms, or specifying foreign governing laws. Additionally, it mandated that all state agency contracts include provisions stating that Iowa law governs the contract and that any litigation must occur in specified Iowa courts. The bill was introduced on January 23, 2025, and was later renumbered as House File 952 (HF952).

Supporters of HSB71 argued that the bill would enhance transparency and accountability in state contracts by eliminating unfavorable terms and ensuring that contracts are governed by Iowa law. They believed that these measures would protect the state's interests and prevent potential legal complications arising from ambiguous or unfavorable contract provisions.

Opponents of HSB71 contended that the bill could limit the flexibility of state agencies in negotiating contracts, potentially leading to increased costs or difficulties in securing services. They expressed concerns that prohibiting certain contract terms might deter vendors from entering into agreements with the state, thereby reducing competition and possibly affecting the quality of services procured.