Changes to Existing Law

26.732.21 26.732.22 101st Legislative Session 1180 2026 South Dakota Legislature House Bill 1180 Introduced by: Representative Mortenson Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to ensure the validity of non-compete agreements in the context of jointly 1 owned business entities. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That a NEW SECTION be added to chapter 53-9: 4 In any governing document of a business entity, or as part of a contract for the 5 purchase, sale, or transfer of an ownership interest in the entity, the parties may agree 6 that an owner, after the transfer of the interest in the entity, may not engage, directly or 7 indirectly, in the same or similar type of business conducted by the entity during the 8 owner's period of ownership, within the specified geographic area in which the entity 9 conducts business, for a period not exceeding three years from the date of transfer. 10 26.732.22 2 1180 HB1180 ENROLLED An Act to ensure the validity of non-compete agreements in the context of jointly owned business entities. I certify that the attached Act originated in the: House as Bill No. 1180 Chief Clerk of the House Speaker of the House Attest: Chief Clerk of the House President of the Senate Attest: Secretary of the Senate House Bill No. 1180 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State