SF 812

Introduction - 91st Legislature (2019 - 2020)

Posted on 02/04/2019 02:56 p.m.

A bill for an act
relating to employment; prohibiting enforcement of certain covenants not to solicit
or compete affecting accounts of close relatives of investment adviser
representatives and brokers; proposing coding for new law in Minnesota Statutes,
chapter 80A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [80A.675] COVENANTS NOT TO SOLICIT OR COMPETE;
INVESTMENT ADVISER REPRESENTATIVES AND BROKERS.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin No investment adviser or broker-dealer shall enforce or
threaten to enforce a covenant not to solicit or compete against any investment adviser
representative or broker with respect to accounts of close relatives with whom that investment
adviser representative or broker had a direct advisory or sales relationship.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "close relative" means a spouse, child,
parent, grandparent, aunt, uncle, grandchild, parent-in-law, sibling-in-law, or step-relative
of the investment adviser representative or broker.
new text end