HB 1180

26.732.22  101st Legislative Session  1180
                                   2026 South Dakota Legislature
                                            House Bill 1180
                                                  ENROLLED
                                            AN ACT
ENTITLED An Act to ensure the validity of non-compete agreements in the context
       of jointly owned business entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That a NEW SECTION be added to chapter 53-9:
            In any governing document of a business entity, or as part of a contract for the
   purchase, sale, or transfer of an ownership interest in the entity, the parties may agree
   that an owner, after the transfer of the interest in the entity, may not engage, directly or
   indirectly, in the same or similar type of business conducted by the entity during the
   owner's period of ownership, within the specified geographic area in which the entity
   conducts business, for a period not exceeding three years from the date of transfer.
26.732.22  2  1180
An Act to ensure the validity of non-compete agreements in the context of jointly owned
business entities.
                                                     Received at this Executive Office
 I certify that the attached Act originated in       this _____ day of _____________,
 the:
                                                     2026 at ____________M.
 House as Bill No. 1180
                                                     By
                     Chief Clerk of the House  for the Governor
                                                                      The attached Act is hereby
                                                                  approved this ________ day of
                          Speaker of the House  ______________, A.D., 2026
 Attest:
                                                                                        Governor
                     Chief Clerk of the House
                                                     STATE OF SOUTH DAKOTA,
                                                                                               ss.
                                                     Office of the Secretary of State
                       President of the Senate
                                                                    Filed ____________, 2026
 Attest:  at _________ o'clock __M.
                       Secretary of the Senate  Secretary of State
 House Bill No. 1180  By
 File No. ____  Asst. Secretary of State
 Chapter No. ______
HB1180 ENROLLED