Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: H3/30/23
2 94th General Assembly A Bill
3 Regular Session, 2023 HOUSE BILL 1130
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5 By: Representative L. Johnson
6 By: Senator Hill
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8 For An Act To Be Entitled
9 AN ACT TO CLARIFY THAT A COVENANT NOT TO COMPETE
10 AGREEMENT IS UNENFORCEABLE FOR CERTAIN LICENSED
11 MEDICAL PROFESSIONALS; AND FOR OTHER PURPOSES.
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14 Subtitle
15 TO CLARIFY THAT A COVENANT NOT TO COMPETE
16 AGREEMENT IS UNENFORCEABLE FOR CERTAIN
17 LICENSED MEDICAL PROFESSIONALS.
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20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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22 SECTION 1. Arkansas Code § 4-75-101(h), concerning ancillary
23 agreements and existing common law standards governing covenant not to
24 compete agreements, is amended to read as follows:
25 (h)(1) This subsection section does not apply to a covenant not to
26 compete agreement that is ancillary to other contractual relationships,
27 including any type of agreement for the sale and purchase of a business,
28 franchise agreement, and any other agreement not ancillary to an employment
29 relationship or employment contract.
30 (2) Existing common law standards governing a covenant not to
31 compete agreement outside the employment background shall remain in effect.
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33 SECTION 2. Arkansas Code § 4-75-101(j), concerning the applicability
34 of covenant not to compete agreements, is amended to add an additional
35 subdivision to read as follows:
36 (j) This section shall not:
*ANS031* 03-30-2023 10:50:18 ANS031
 As Engrossed: H3/30/23 HB1130
1 (1) Be read to impair, limit, or change a party's protections
2 and rights under the Arkansas Trade Secrets Act, § 4-75-601 et seq.; or
3 (2)(A) Apply to a person holding a professional license under
4 Arkansas Code Title 17, Subtitle 3.
5 (B) A covenant not to compete agreement or provision that
6 restricts the right of an individual holding a professional license under
7 Arkansas Code Title 17, Subtitle 3 to practice within the individual's scope
8 of practice upon termination of the covenant not to compete agreement is void
9 as to that restriction.
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11 /s/L. Johnson
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2 03-30-2023 10:50:18 ANS031


Statutes affected:
Old version HB1130 Original - 1-12-2023 02:08 PM: 4-75-101(h), 4-75-101(j)
Old version HB1130 V2 - 3-30-2023 10:50 AM: 4-75-101(h), 4-75-101(j)
HB 1130: 4-75-101(h), 4-75-101(j)