2016 -- H 7687

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LC003511

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

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

COMPETITION AGREEMENTS

     

     Introduced By: Representatives Reilly, Giarrusso, Shekarchi, Blazejewski, and Handy

     Date Introduced: February 24, 2016

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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

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

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CHAPTER 41.1

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NON-COMPETITION AGREEMENTS

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

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

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

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

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of a partner from a partnership.

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

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or supersede the provisions of chapter 41 of title 6, the "Uniform Trade Secrets Act."

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     SECTION 2. This act shall take effect upon passage.

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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 in the state unless

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integral to the sale of a business interest or the dissolution of a partnership or the withdrawal of a

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partner from a partnership.

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     This act would take effect upon passage.

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