HB1180 • 2026

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

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Kolbeck (Steve)
Last action: 2026-03-12
Official status: Signed by the Governor
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

What This Bill Does

ensure the validity of non-compete agreements in the context of jointly owned business entities.
Official keyword topics: Contracts Official sponsor note: Representative <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4790/Detail">Mortenson</a> (prime) and Senator <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4777/Detail">Kolbeck (Steve)</a> (prime)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-03-12 House of Representatives
Signed by the Governor
2026-03-10 House of Representatives
Delivered to the Governor
2026-03-09 Senate
Signed by the President
2026-03-05 House of Representatives
Signed by the Speaker
2026-03-04 Senate
Do Pass
2026-03-03 Senate Commerce and Energy
Certified uncontested, placed on consent
2026-03-03 Senate Commerce and Energy
Do Pass
2026-03-03 Senate Commerce and Energy
Scheduled for hearing
2026-02-10 Senate
First read in Senate and referred to Senate Commerce and Energy
2026-02-09 House of Representatives
Do Pass
2026-02-06 House Judiciary
Do Pass
2026-02-06 House Judiciary
Scheduled for hearing
2026-01-28 House of Representatives
First read in House and referred to House Judiciary

Official Summary Text

ensure the validity of non-compete agreements in the context of jointly owned business entities.
Official keyword topics:
Contracts
Official sponsor note: Representative <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4790/Detail">Mortenson</a> (prime) and Senator <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4777/Detail">Kolbeck (Steve)</a> (prime)

Current Bill Text

Read the full stored bill text

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
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