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S 2644Land Use

Property - Estates in Real Property

This bill bans property rules that prevent new grocery stores from opening on land where old ones closed, with limited exceptions.

Signed into law69 Yea0 Nay6 Not voting
Population
Affected
25
Email Legislator
Introduced Feb 27, 2026Committee Senate Commerce

Plain-English Summary

This legislation prevents property owners from placing "restrictive covenants" on land that ban the future use of that property as a grocery store or supermarket. Essentially, if a grocery store closes or sells its land, the seller generally cannot legally forbid a competitor from opening a new food store at that location. There is an exception: if a store is relocating within a half-mile and opens within a year, they can place a temporary restriction (up to 18 months) on the old site. This law applies only to new agreements made after the bill passes.

For younger readers

Sometimes, when a grocery store moves out of a building, the owners make a rule saying no other grocery store is allowed to move in there. This bill stops them from making that rule. It wants to make sure neighborhoods don't lose their place to buy food just because a store moved. There is a small exception: if a store is just moving down the street (within half a mile), they can stop a new store from opening in their old building, but only for a very short time (18 months).

Who & Where It Applies

Impacted groups
Grocery Store OwnersSupermarket ChainsCommercial Real Estate DevelopersResidents in Food DesertsCommercial Property Buyers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Combats "food deserts" by ensuring that retail spaces designed for selling food remain available for that purpose, securing food access for vulnerable communities.
  • Prevents large corporate chains from hoarding land and using anti-competitive tactics to block local or smaller competitors from serving the neighborhood.
  • Promotes community welfare by prioritizing the nutritional needs of residents over the strategic profits of large real estate and retail conglomerates.
  • The legislation does not apply retroactively, meaning existing restrictive covenants that are currently causing food deserts will remain in effect.
  • The exception allowing restrictions for relocation within a half-mile could still leave a neighborhood without a walkable food source for up to 18 months.
  • While it removes a legal barrier, the bill does not provide active funding or incentives to actually attract new grocers to low-income areas.
For Conservatives
  • Encourages free market competition by removing artificial barriers that prevent businesses from entering the market and serving consumers.
  • Reduces the need for government subsidies or intervention to solve food access issues by allowing the private market to correct itself.
  • Empowers property buyers to utilize land for its highest and best use without being shackled by the demands of previous owners.
  • Interferes with the rights of private property owners and businesses to freely negotiate the terms and conditions of real estate contracts.
  • Sets a precedent for government overreach into private business decisions regarding how they manage their assets and competition strategy.
  • May negatively impact the resale value of commercial properties for business owners who rely on these covenants to protect their investment in a new nearby location.

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.