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South DakotaHB 1180101st South Dakota Legislature (2026)House

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

Sponsored By: Kolbeck, Steve (Republican), Mortenson, Will (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Business owners can agree to noncompetes

South Dakota law allows noncompete agreements in business governing documents or contracts to buy, sell, or transfer an ownership interest. These agreements can bar direct or indirect competition after an owner transfers the interest. They cover only the same or a similar business conducted during that person's ownership, within an area where the entity operates. Restrictions last no more than three years from the transfer date and require the parties' agreement. This protects the continuing business but limits the former owner's ability to compete.

Sponsors & Cosponsors

Sponsors

  • Kolbeck, Steve

    Republican • Senate

  • Mortenson, Will

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 114 • No: 3

Senate vote • 3/4/2026

Do Pass

Yes: 34 • No: 0

Senate vote • 3/3/2026

Do Pass

Yes: 7 • No: 0

House vote • 2/9/2026

Do Pass

Yes: 63 • No: 2

House vote • 2/6/2026

Do Pass

Yes: 10 • No: 1

Actions Timeline

  1. Signed by the Governor

    3/12/2026House

  2. Delivered to the Governor

    3/10/2026House

  3. Signed by the President

    3/9/2026Senate

  4. Signed by the Speaker

    3/5/2026House

  5. Senate Do Pass, Passed, YEAS 34, NAYS 0

    3/4/2026Senate

  6. Certified uncontested, placed on consent

    3/3/2026Senate

  7. Senate Commerce and Energy Do Pass, Passed, YEAS 7, NAYS 0

    3/3/2026Senate

  8. Scheduled for hearing

    3/3/2026Senate

  9. First read in Senate and referred to Senate Commerce and Energy

    2/10/2026Senate

  10. House of Representatives Do Pass, Passed, YEAS 63, NAYS 2

    2/9/2026House

  11. House Judiciary Do Pass, Passed, YEAS 10, NAYS 1

    2/6/2026House

  12. Scheduled for hearing

    2/6/2026House

  13. First read in House and referred to House Judiciary

    1/28/2026House

Bill Text

  • Introduced

    1/28/2026

    PDF

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