ensure the validity of non-compete agreements in the context of jointly owned business entities.

HB 1180 allows business owners in jointly owned entities to include enforceable non-compete restrictions when transferring ownership interests. The bill permits agreements that prevent a selling owner from competing in the same business within the entity's specific geographic area for up to three years after the transfer. This applies specifically to terms included in ownership transfer contracts or business governing documents, not general employment agreements. The law directly affects business owners selling stakes in jointly held companies and the buyers purchasing those interests.