SD HB1180

Adds a new section to South Dakota law (chapter 53-9) establishing enforceable non-compete agreements for business entity owners who sell or transfer their ownership interest

Allows parties to include non-compete provisions in governing documents or purchase/sale contracts that restrict a departing owner from competing in the same or similar business

Limits non-compete restrictions to the geographic area where the entity conducts business and only for business activities conducted during the owner's period of ownership

Caps the maximum duration of any non-compete restriction at three years from the date of ownership transfer