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Read. Follow. Verify.South Dakota authorizes non-compete agreements up to three years for departing business owners
Last action · March 12, 2026: Signed by the GovernorSponsors: Steve Kolbeck and 1 other
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What This Bill Does
South Dakota now permits business entities and owners to include post-transfer s lasting up to three years in governing documents or ownership sale contracts. This rule applies directly to individuals who sell or transfer their ownership interest in a jointly owned business entity. The legislation took effect upon being signed by the governor in March 2026.
The measure establishes specific legal boundaries for post-ownership restrictions within the state, directly affecting commercial contracts and individuals selling equity stakes in local companies. It sets a strict statutory ceiling on the duration and enforceability of such geographic business limitations.
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Business owners
Owners selling or transferring their equity interests are subject to enforceable post-transfer non-compete terms lasting up to three years.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Who is affected by these new non-compete rules?
What is the maximum length of a non-compete agreement allowed under this law?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Signed into law.
Procedural history
13 actions- Mar 12, 2026HouseEnrolledSigned by the Governor
- Mar 10, 2026HouseEnrolledDelivered to the Governor
- Mar 9, 2026SenateSigned by the President
- Mar 5, 2026HouseSigned by the Speaker
- Mar 4, 2026SenateFloorDo Pass
- Mar 3, 2026SenateCertified uncontested, placed on consent
Show 7 earlier actions
- Mar 3, 2026SenateCommitteeDo Pass
- Mar 3, 2026SenateScheduled for hearing
- Feb 10, 2026SenateIntroducedFirst read in Senate and referred to
- Feb 9, 2026HouseFloorDo Pass
- Feb 6, 2026HouseCommitteeDo Pass
- Feb 6, 2026HouseScheduled for hearing
- Jan 28, 2026HouseIntroducedFirst read in House and referred to
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Voting Record
Do Pass
Total
70
- Yes
- 63
- No
- 2
- Present
- 0
- Not voting
- 0
- Abstain
- 0
- Other positions
- 5
How they voted (1)
Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
sdlegislature.gov
Analysis Score
0–100- Significance45How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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