South Dakota now allows business owners to sign non-compete agreements that prevent them from starting or working for competing businesses after they sell their ownership stake in a company. These agreements can last up to three years and apply within the geographic area where the original business operates, and they can be included in the company's governing documents or in the sale contract itself.
The amendment converted the introduced version into the official enrolled bill format by removing the introductory header information and line numbers, then adding the formal legislative certification pages and signature blocks required for a bill that has passed both chambers. This is a procedural formatting change only—the substantive law creating non-compete agreement validity for business entity ownership transfers remains unchanged.
Signed by the Governor H.J. 571
Delivered to the Governor H.J. 546
Signed by the President S.J. 506
Signed by the Speaker H.J. 529
Senate Do Pass Passed, YEAS 34, NAYS 0. S.J. 461
Commerce and Energy Certified uncontested, placed on consent
Commerce and Energy Do Pass Passed, YEAS 7, NAYS 0.
Commerce and Energy Scheduled for hearing
First read in Senate and referred to Senate Commerce and Energy S.J. 232
House of Representatives Do Pass Passed, YEAS 63, NAYS 2. H.J. 266
Judiciary Do Pass Passed, YEAS 10, NAYS 1. H.J. 14
Judiciary Scheduled for hearing
First read in House and referred to House Judiciary H.J. 164
Prime sponsor · Sen.
R
Prime sponsor · Rep.
R
Commerce and Energy — Do Pass
Do Pass
Judiciary — Do Pass