State of South Dakota  
EIGHTY-SEVENTH SESSION
LEGISLATIVE ASSEMBLY, 2012  

298T0147   HOUSE BILL   NO.  1004  

Introduced by:    Representatives Kloucek, Hubbel, Hunhoff (Bernie), Kirschman, Lucas, Nelson (Stace), Russell, Sigdestad, and Stricherz and Senators Putnam, Bradford, Frerichs, Hundstad, and Sutton
 

        FOR AN ACT ENTITLED, An Act to reduce the term allowed for covenants not to compete.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 53-9-11 be amended to read as follows:
    53-9-11. An employee may agree with an employer at the time of employment or at any time during his the employment not to engage directly or indirectly in the same business or profession as that of his the employer for any period not exceeding two years one year from the date of termination of the agreement and not to solicit existing customers of the employer within a specified county, first or second class municipality, or other specified area for any period not exceeding two years one year from the date of termination of the agreement, if the employer continues to carry on a like business therein.
    Section 2. That § 53-9-12 be amended to read as follows:
    53-9-12. Any independent contractor who is an insurance producer as defined in subdivision 58-1-2(16) and is a captive agent who is not an independent agent and who works exclusively for a single insurance company or an affiliated group of insurance companies, even if the single

insurance company allows its captive agents to market the products of another insurance company pursuant to contract, may agree with an insurer at the time of contracting or at any time during the term of the contract:

            (1)    Not to engage directly or indirectly in the same business or profession as that of the insurer for any period not exceeding two years one year from the date of termination of the independent contractor's agreement with the insurer; and
            (2)    Not to solicit existing customers of the insurer within a specified county, first or second class municipality, or other specified area for any period not exceeding two years one year from the date of termination of the agreement, if the insurer continues to carry on a like business within the specified area.