2015 -- H 5708

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LC001334

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- NON-

COMPETITION AGREEMENTS

     Introduced By: Representatives Reilly, Chippendale, Trillo, Newberry, and Edwards

     Date Introduced: February 26, 2015

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL

REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 41.1

NON-COMPETITION AGREEMENTS

     6-41.1-1. Non-competition agreements -- Enforceability. – Non-competition

agreements are declared to be contrary to the public policy of the state, and shall not be enforced

by its courts unless the non-competition agreement is integral to, and part of the consideration for

the sale of the stock or assets of a business, or the dissolution of a partnership or the withdrawal

of a partner from a partnership.

     6-41.1-2. Trade secrets not affected. – Nothing in this chapter shall be deemed to

derogate from the provisions of chapter 41 of title 6, the uniform trade secrets act.

     SECTION 2. This act shall take effect upon passage.

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LC001334

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- NON-

COMPETITION AGREEMENTS

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     This act would declare non-competition agreements unenforceable unless integral to the

sale of a business interest.

     This act would take effect upon passage.

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LC001334

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