A bill prohibiting restrictive covenants that block properties from being used as grocery stores is now headed to Gov. Dan McKee’s desk.

Senators Melissa Murray, D-Woonsocket, and Brian Thompson, D-Woonsocket, reintroduced S2644, which prohibits restrictive covenants on retail properties where fresh food is regularly sold, at the request of Lt. Gov. Sabina Matos.

“This is a victory for consumers, putting people’s access to affordable food ahead of corporate greed by creating a fairer and more competitive marketplace,” Murray wrote in a statement.

Once the bill is signed by McKee, Rhode Island will join Washington in outlawing grocery chains from using restrictive covenants.

The legislation includes an exception and wouldn’t override existing restrictions, which under state law expire after 30 years.

The law creates a narrow exception allowing restrictive covenants to remain in place for no more than 18 months if a grocery store closed within the past six months, the owner secured a nearby replacement of similar size and offerings within a half-mile, and the new store opens within a year of closure. 

Matos hopes the new legislation will bring new grocery stores to Rhode Island, especially in Woonsocket, where she found that restrictive covenants contributed to barriers to healthy food access and left 45,000 residents with one full-scale grocery store within city limits.

“The passage of this bill will be a major step forward for Rhode Island in attracting new grocery providers and lowering prices through health competition. We’ve talked to family-owned grocers, both big and small, and all of them have been excited to learn that Rhode Island is going to bat against corporate bullies in their industry. Now, we’re going to work to take advantage of this opportunity and ensure every community has access to multiple affordable grocery options,” Matos wrote in a statement.

Matos has found seven covenants stretching from Woonsocket to Westerly, with some provisions stating the restrictions would last up to 75 years, and cases in which large retailers remained bound to leases on vacant sites while operating nearby stores in rural communities.

“It takes a lot of research to unearth one of these covenants, but we didn’t do this alone. My office was helped by so many Rhode Islanders. Everywhere I went, from my visits to senior centers to social media, we got dozens of tips on where to look to find these secretive real estate deals. This legislative victory belongs to all of them as much as it does anyone in the State House,” she added in the statement.

Members of the U.S. Senate raised concerns about the practice’s harm to Woonsocket residents in May, when they called on the Federal Trade Commission to address grocery chains’ use of the respective covenants.

“We have momentum we never saw coming last year,” David Folcarelli, a senior adviser to Matos, wrote in a statement.

The bill drew no opposition from the state’s business community, though three House members voted against the version sponsored by Rep. Stephen Casey, and nine others abstained. And just one lawmaker decided not to vote on Murray’s version when it reached the Senate floor.

The companion bills are part of Matos’ Fair Price Grocery Agenda, a legislative package aimed at reducing grocery store prices. The restrictive covenant bills are the only measures out of the legislative package to see movement this session.

Two other bills aimed at tackling price discrimination and requiring retailers to offer in-store alternatives to digital-only discounts have been stuck in committee for a second year in a row.

“It’s clear that Rhode Islanders want the State House to step up and take on high grocery prices, and Lt. Governor Matos is willing to fight for it. Just like restrictive covenants, we’re correct on issues like price discrimination — we’re just early. Lt. Governor Matos is going to come back next session fighting to ensure Rhode Islanders get a fair price on their groceries,” Folcarelli added in the statement.