The proposed bill establishes the "Residential and Commercial Property Acquisition Program Act" as a new chapter in Title 46 of the General Laws. The purpose of this act is to implement a voluntary residential or commercial property acquisition program in high-hazard zones, paired with funding for relocation costs to safer areas within or proximate to the current community. The act aims to restore the acquired land to its natural habitat and enhance community resilience, shoreline or riverine access, and outdoor recreation.

The bill outlines a comprehensive planning process for municipalities, which includes conducting community vulnerability assessments, creating prioritized lists of parcels for voluntary buyouts, and estimating costs for relocation assistance, debris cleanup, and restoration of the land. It allocates $500,000 in the 2026-2027 fiscal year budget for technical assistance to municipalities within the Resilient Rhody Infrastructure Fund to aid in planning for managed retreat.

Municipalities that complete the planning process will become eligible for revolving loan funds, grant funds, and catastrophe bond funds. The Rhode Island infrastructure bank, the department of environmental management, and the coastal resource management council are tasked with creating a managed retreat planning process and a funding prioritization process within specified timeframes.

The act also authorizes the Rhode Island infrastructure bank and relevant departments to apply for federal funding sources and use available funds in the Resilient Rhody Infrastructure Fund as matching funds for federal programs. Additionally, the department of business regulation is authorized to negotiate insurance premium discounts for property owners who opt into a voluntary buyout and to collect a portion of these discounts for the Resilient Rhody Infrastructure Fund.

The act will take effect upon passage.