South Dakota HB1180: ensure the validity of non-compete agreements in the context of jointly owned business entities.

What the bill says

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

From the enrolled text, March 5, 2026:

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. 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:Houseas Bill No.1180Chief Clerk of the HouseSpeaker of the HouseAttest:Chief Clerk of the HousePresident of the SenateAttest:Secretary of the SenateHouseBill No.[ADDED: 1180]File No. ____Chapter No. ______ Received at this Executive Officethis _____ day of _____________,2026 at ____________M.Byfor the GovernorThe attached Act is herebyapproved this ________ day of______________, A.D., 2026GovernorSTATE OF SOUTH DAKOTA,ss.Office of the Secretary of StateFiled ____________, 2026at _________ o'clock __M.Secretary …

Read the full official text

Sponsors

• Steve Kolbeck (R, SD-002) · primary sponsor
• Will Mortenson (R, HD-024) · primary sponsor

Latest actions

1. March 12, 2026: Signed by the Governor
2. March 10, 2026: Delivered to the Governor
3. March 9, 2026: Signed by the President
4. March 5, 2026: Signed by the Speaker
5. March 4, 2026: Do Pass
6. March 3, 2026: Certified uncontested, placed on consent
7. March 3, 2026: Do Pass
8. March 3, 2026: Scheduled for hearing
9. February 10, 2026: First read in Senate and referred to Commerce and Energy
10. February 9, 2026: Do Pass

Votes

• Do Pass (March 4, 2026): 34 yea, 0 nay, passed
• Do Pass (March 3, 2026): 7 yea, 0 nay, passed
• Do Pass (February 23, 2026): 63 yea, 2 nay, passed
• Do Pass (February 6, 2026): 10 yea, 1 nay, passed

Common questions

What is HB1180?

HB1180 is a bill in the South Dakota Legislature (101st Legislature (2026)): ensure the validity of non-compete agreements in the context of jointly owned business entities.

What does HB1180 do?

In its own words: An Act ENTITLED An Act to ensure the validity of non-compete agreements in the context of jointly owned business entities.

What is the status of HB1180?

Signed into law as of March 12, 2026. Latest action: Signed by the Governor (March 12, 2026).

Who sponsored HB1180?

Steve Kolbeck (R, SD-002), with 1 co-sponsor.

Where is the official record for HB1180?

On the South Dakota Legislature website: https://sdlegislature.gov/Session/Bill/27031