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H 8106Real Estate

Property - Estates in Real Property

Bans property deed restrictions that prevent future grocery stores, with limited exceptions for sellers relocating nearby.

Signed into law62 Yea3 Nay9 Not voting
Population
Affected
15
Email Legislator
Introduced Feb 27, 2026Committee House Judiciary

Plain-English Summary

This legislation prevents property sellers from placing "restrictive covenants" on land deeds that prohibit the future use of the property as a grocery store or supermarket. This practice is often used to stifle competition. However, the bill creates an exception: if a seller is relocating their store to a new site within a half-mile, they may impose a restriction on the old property for up to 18 months. This exception only applies if the new store opens within one year of the old one closing. The law applies only to future agreements.

For younger readers

Sometimes, when a grocery store owner sells their building, they force the new owner to promise never to sell food there. They do this to stop new competition. This bill changes the law so they are not allowed to do that anymore. This helps make sure neighborhoods have places to buy fresh food. However, if the old store owner is just moving to a new building down the street, they can tell the new owner to wait a short time (about a year and a half) before opening a new food store.

Who & Where It Applies

Impacted groups
Grocery store chainsCommercial real estate developersProperty ownersResidents in food desertsIndependent grocers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Combats "food deserts" by removing legal barriers that prevent grocery stores from opening in neighborhoods that desperately need access to fresh food.
  • Prevents large corporations from hoarding real estate and restricting land use solely to protect their profits at the expense of community health and nutrition.
  • Encourages fair competition by allowing smaller, independent grocers or co-ops to acquire former supermarket locations that were previously locked down by corporate chains.
  • The legislation is not retroactive, meaning existing restrictive covenants that are currently causing food deserts in vulnerable communities will remain in effect.
  • The relocation exception allows chains to maintain a monopoly and leave a property vacant for up to 18 months, potentially leaving residents without convenient food access during that transition.
  • Relying on market mechanisms to solve food insecurity may not be enough; the bill does not actively fund or mandate the creation of grocery stores in underserved areas.
For Conservatives
  • Promotes free market principles by removing artificial barriers to entry, allowing businesses to compete based on quality and price rather than legal blockades.
  • Maximizes the economic utility of real estate by ensuring commercial properties can be used for their most valuable purpose rather than sitting empty due to restrictions.
  • Prevents anti-competitive behavior by large entities, fostering an environment where small businesses and entrepreneurs have a fair shot at entering the market.
  • Interferes with private contract rights by dictating what terms a private seller and buyer can or cannot agree to during a real estate transaction.
  • Erodes property rights by limiting a property owner's ability to control the future use of an asset they are selling.
  • Creates government overreach into business strategy, preventing companies from protecting their investments and market share through standard legal agreements.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 25 additions

It is enacted by the General Assembly as follows:

SECTION 1. Chapter 34-4 of the General Laws entitled "Estates in Real Property" is hereby amended by adding thereto the following section: 34-4-31. Prohibition of restrictive covenants related to grocery stores.

(a) A covenant or restriction concerning the use of land designated as a retail establishment where fresh food is regularly and customarily sold in a bona fide manner for off-premises consumption including, but not limited to, grocery stores and supermarkets, shall be void and unenforceable, except under circumstances as set forth in subsection (b) of this section.

(b) The prohibition in this section shall not apply to covenants or restrictions on concerning the use of land if all of the following conditions are met:

(1) The land subject to restriction has been used by the seller within the six (6) months prior to the date of the agreement for the operation of a retail establishment for the sale of fresh food for off-premises consumption including, but not limited to, a grocery store or supermarket (hereafter known as the “discontinued site”);

(2) The seller has identified and purchased land to be used for the operation of a new retail establishment for the sale of fresh food for off-premises consumption including, but not limited to, a grocery store or supermarket (hereafter known as the “relocated store”);

(3) The relocated store is similar in size and scope of products sold when compared to the discontinued site;

(4) The relocated store is located within one-half (1/2) mile of the discontinued site;

(5) Relocation and commencement of operations of the relocated store at the new site occurs within one year following closure; and

(6) The restrictive covenant imposed on the discontinued site does not have a term in excess of eighteen months from the date of closure.

(c) The prohibitions set forth in this section do not apply to restrictive covenants or other agreements entered into prior to the effective date of this section.

(d) If any portion of this section is found by a court of competent jurisdiction to be unlawful, such finding shall not affect any other portion of this section not specifically so found.

SECTION 2. This act shall take effect upon passage.