The bill amends South Dakota law to prohibit certain restrictive provisions in employment contracts for community services providers. Specifically, it establishes that any contract entered into on or after July 1, 2026, is voidable if it restricts a community services provider from providing services to individuals with developmental disabilities after their employment ends or after the dissolution of a partnership or contractual relationship. This amendment aligns with existing provisions that protect practitioners in similar circumstances.

Additionally, the bill clarifies that the restrictions do not apply to contractual provisions effective upon the sale of a practice or those that limit a practitioner or community services provider from soliciting current patients or clients, as long as such solicitation adheres to geographic and temporal limitations. The definition of "soliciting" is also expanded to include targeted actions aimed at convincing patients or clients to transfer their care or business to a new provider.

Statutes affected:
Introduced, 01/28/2026: 53-9-11.2