Subcommittee reports noncompete bill to full LCI committee after mixed remarks

The LCI subcommittee voted to report a House bill on noncompete agreements to the full committee after members debated legal scope and practical limits.

The chair said they would "testify today, both for and against the bill" and urged moving the measure to full committee so other LCI members could hear stakeholder input and the legal arguments raised in subcommittee. The chair identified tensions between "statutory law versus common law," the "one-subject rule" and concerns about "impairment of rights contract," and said reporting the bill would allow fuller discussion even if passage this year remained uncertain.

A committee member said they had "some serious reservations about the bill" but supported sending it forward without amendments for further consideration. The member contrasted the Senate and House drafts, saying the Senate measure was "much more broadly written" but noted the Senate language explicitly carves out noncompetes "with respect to the sale of a practice," which the member described as a clear argument for allowing some noncompetes when purchasers invest capital in a business.

The chair announced a motion — described in the record as made by senators in Spartanburg — to report the House bill unamended and favorably to the full LCI committee. The motion was said to have been seconded by "the senator from New York." The chair called a voice vote and, after an affirmative response, stated that the bill "will be reported out fairly and taken up in full LCI committee tomorrow." The transcript records a voice vote only; no roll-call tally appears.

Informal remarks and brief banter about refreshments followed during the meeting; participants then closed the subcommittee. The bill will be considered by the full LCI committee at its next scheduled session.