D.C. Law 22-138. Grocery Store Restrictive Covenant Prohibition Act of 2018.
AN ACT
To establish that it shall be unlawful for the owner or operator of a grocery store or a food retail store to agree to the inclusion of a restrictive land covenant or other use restriction in a contract for the sale, lease, or other transfer of real property that prohibits the subsequent use of the property as a grocery store or a food retail store or that prohibits the use of any property within one mile as a grocery store or a food retail store, unless the owner or operator relocates the grocery store or food retail store within a half mile of its former location, commences operation of the store within 2 years, and limits the restrictive covenant to not exceed 3 years.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Grocery Store Restrictive Covenant Prohibition Act of 2018".
Sec. 2. Restrictive Covenants Prohibited.
(a) It shall be unlawful for the owner or operator of a grocery store or a food retail store to agree to the inclusion of a restrictive land covenant or other use restriction in a contract for the sale, lease, or other transfer of real property that prohibits the use of the real property as a grocery store or a food retail store or that prohibits the use of any property within one mile as a grocery store or a food retail store.
(b) A restrictive land covenant or other use restriction on real property of the type described in subsection (a) of this section shall be void and unenforceable.
(c) The prohibition imposed by this section shall not apply to an owner or operator of a grocery store or food retail store that terminates operations at a site for purposes of relocating the grocery store or food retail store to a comparable or larger site located in the District of Columbia within one-half mile of the site where the prior operations were terminated; provided, that relocation and commencement of the operation of the new grocery store or food retail store at the new site occurs within 2 years of the sale, transfer, or lease of the prior site, and that the restrictive covenant or other use restriction agreed upon with respect to the prior site does not have a term in excess of 3 years.
(d) For the purposes of this act, the term:
(1) "Food retail store" means a retail establishment with a primary business of selling food for consumption on-premise or off-premise.
(2) "Grocery store" means a retail establishment with a primary business of selling grocery products and that has a selling area that is used for a general line of food, including perishable food, and may also include household supplies, or prescription pharmacy merchandise.
Sec. 3. Fiscal impact statement.
The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a).
Sec. 4. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of Columbia Register.
