13-8-2.1. Contracts in partial restraint of trade.

Code 1981, § 13-8-2.1, enacted by Ga. L. 1990, p. 1676, § 2; Ga. L. 1991, p. 94, § 13; Ga. L. 2009, p. 231, § 2/HB 173; repealed by Ga. L. 2011, p. 399, § 3/HB 30, effective May 11, 2011.

Ga. L. 2009, p. 231, § 4 provides that the 2009 repeal becomes effective following the ratification at the time of the 2010 general election of an amendment to the Constitution of Georgia providing for the enforcement of covenants in commercial contracts that limit competition and shall apply to contracts entered into on and after such date and shall not apply in actions determining the enforceability of restrictive covenants entered into before such date and that if such amendment is not so ratified, then this amendment shall stand automatically repealed. This Code section as repealed is not set out in the Code owing to the delayed effective date. After the ratification is made, this Code section will be repealed. The 2009 amendment, provides for the repeal of this Code section. For effective date of this amendment, see the delayed effective date note.

Ga. L. 2011, p. 399, § 1, not codified by the General Assembly, provides: “During the 2009 legislative session the General Assembly enacted HB 173 (Act No. 64, Ga. L. 2009, p. 231), which was a bill that dealt with the issue of restrictive covenants in contracts and which was contingently effective on the passage of a constitutional amendment. During the 2010 legislative session the General Assembly enacted HR 178 (Ga. L. 2010, p. 1260), the constitutional amendment necessary for the statutory language of HB 173 (Act No. 64, Ga. L. 2009, p. 231), and the voters ratified the constitutional amendment on November 2, 2010. It has been suggested by certain parties that because of the effective date provisions of HB 173 (Act No. 64, Ga. L. 2009, p. 231), there may be some question about the validity of that legislation. It is the intention of this Act to remove any such uncertainty by substantially reenacting the substantive provisions of HB 173 (Act No. 64, Ga. L. 2009, p. 231), but the enactment of this Act should not be taken as evidence of a legislative determination that HB 173 (Act No. 64, Ga. L. 2009, p. 231) was in fact invalid.” Ga. L. 2011, p. 399, § 5, not codified by the General Assembly, provides, in part, that the repeal of this Code section shall apply to contracts entered into on and after May 11, 2011, and shall not apply in actions determining the enforceability of restrictive covenants entered into before May 11, 2011.

For article, ‘‘Georgia Constitution May Restrict the 1990 Restrictive Covenant Law,’’ see 27 Ga. St. B.J. 82 (1990). For survey article on law relating to intellectual property, see 42 Mercer L. Rev. 295 (1990). For article, ‘‘Georgia Gets Competitive,’’ see 15 (No. 4) Ga. St. B.J. 13 (2009).