Georgia moved one step closer this week to amending its Constitution to allow the General Assembly to enact legislation regarding commercially applicable (non-real estate) restrictive covenants. HR 178 passed out of the House (158 yeas – 12 nays) on Monday, March 22, 2010 and is headed to the Senate. Word is that it is expected to pass without problem. The House Resolution provides that it is
A RESOLUTION proposing an amendment to the Constitution so as to allow the enforcement of contracts that restrict competition during or after the term of employment or of a commercial relationship so long as such contracts are reasonable in time, area, and line of business; to provide that courts may modify such contracts to achieve the intent of the contracting parties; to provide for the submission of this amendment for ratification or rejection; and for other purposes.
If passed by the Georgia Senate, the proposed amendment will appear on the general election ballot in November 2010.