Prohibits restrictive covenants related to grocery stores.

Plain-English Summary

This bill would make it illegal to include certain restrictions in real estate contracts that limit or prevent grocery stores from operating in a particular location. These restrictions, known as "restrictive covenants," are clauses that property owners or developers sometimes put into property agreements that can prohibit future tenants or buyers from using a space for specific purposes — in this case, selling groceries.

The bill would primarily affect commercial real estate deals involving shopping centers, retail spaces, and other properties where grocery stores might want to open. Currently, a large grocery chain or property developer could include language in a lease or sale agreement that prevents a competitor grocery store from opening nearby. This practice can limit consumer choices and is sometimes blamed for contributing to "food deserts" — areas where residents have little or no access to affordable, fresh food. By banning these covenants, the bill aims to make it easier for grocery stores to set up shop in more locations throughout Rhode Island.

This legislation would affect commercial property owners, real estate developers, landlords, and grocery retailers operating in Rhode Island. Any existing or future contracts containing these kinds of grocery-related restrictions would be impacted. The bill is currently in the early stages of the legislative process — it was referred to the House Judiciary Committee, which has recommended holding it for further study before any action is taken.