The bill amends Chapter 34-4 of the General Laws by introducing a new section, 34-4-31, which prohibits restrictive covenants concerning the use of land designated for retail establishments that sell fresh food for off-premises consumption, including grocery stores and supermarkets. Under this new provision, any such covenant or restriction will be deemed void and unenforceable, except under specific conditions outlined in subsection (b). These conditions allow for covenants to remain valid if the following criteria are met:
1. The land subject to restriction has been used by the seller within the six months prior to the agreement for the operation of a retail establishment for the sale of fresh food for off-premises consumption, 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, 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 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.
6. The restrictive covenant imposed on the discontinued site does not have a term in excess of eighteen months from the date of closure.
Additionally, the bill clarifies that the prohibitions do not apply to restrictive covenants or other agreements entered into prior to the effective date of this section. It also includes a provision stating that if any portion of this section is found unlawful by a court of competent jurisdiction, such finding shall not affect any other portion of this section not specifically so found. The act is set to take effect upon passage.