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.

An Act to ensure the validity of non-compete agreements in the context of jointly owned business entities.