08 LC 34
1884
House
Resolution 1879
By:
Representative Levitas of the
82nd
A
RESOLUTION
Creating
the House Study Committee on Restrictive Covenants in the Commercial Arena; and
for other purposes.
WHEREAS,
Georgia has judicial precedent, based upon the constitutional doctrine of
restraint of trade, to strike down restrictive covenants imposed in the business
arena as illegal; and
WHEREAS,
before certain innovations in technology in the marketplace transformed the
manner in which the world conducts business, it was perhaps reasonable to
prohibit restrictions on competition based on time and geography;
and
WHEREAS,
in the modern commercial atmosphere, however, many reasonable restrictive
covenants should now be considered as valid restraints of trade or commerce;
and
WHEREAS,
contracts that restrict or prohibit competition during or after the term of
employment, so long as such contracts are reasonable in time, area, and line of
business, should not be automatically struck down as unconstitutional in the
rapidly changing marketplace in Georgia; and
WHEREAS,
since there has never been a legislative study of the issues related to
restrictive covenants and covenants not to compete in the commercial arena,
there now exists a need for such a study.
NOW,
THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES that there is created
the House Study Committee on Restrictive Covenants in the Commercial Arena to be
composed of five members of the House of Representatives to be appointed by the
Speaker of the House of Representatives. The Speaker shall designate a member
of the committee as chairperson of the committee. The chairperson shall call
all meetings of the committee.
BE IT FURTHER RESOLVED that the committee shall undertake a study of the conditions, needs, issues, and problems mentioned above or related thereto and recommend any action or legislation which the committee deems necessary or appropriate. The committee may conduct such meetings at such places and at such times as it may deem necessary or convenient to enable it to exercise fully and effectively its powers, perform its duties, and accomplish the objectives and purposes of this resolution. The members of the committee shall receive the allowances provided for in Code Section 28-1-8 of the Official Code of Georgia Annotated. The allowances authorized by this resolution shall not be received by any member of the committee for more than five days unless additional days are authorized. The funds necessary to carry out the provisions of this resolution shall come from the funds appropriated to the House of Representatives. In the event the committee makes a report of its findings and recommendations, with suggestions for proposed legislation, if any, such report shall be made on or before December 31, 2008. The committee shall stand abolished on December 31, 2008.
BE IT FURTHER RESOLVED that the committee shall undertake a study of the conditions, needs, issues, and problems mentioned above or related thereto and recommend any action or legislation which the committee deems necessary or appropriate. The committee may conduct such meetings at such places and at such times as it may deem necessary or convenient to enable it to exercise fully and effectively its powers, perform its duties, and accomplish the objectives and purposes of this resolution. The members of the committee shall receive the allowances provided for in Code Section 28-1-8 of the Official Code of Georgia Annotated. The allowances authorized by this resolution shall not be received by any member of the committee for more than five days unless additional days are authorized. The funds necessary to carry out the provisions of this resolution shall come from the funds appropriated to the House of Representatives. In the event the committee makes a report of its findings and recommendations, with suggestions for proposed legislation, if any, such report shall be made on or before December 31, 2008. The committee shall stand abolished on December 31, 2008.