Bill Sponsors
Lima, Costantino, Read, and Cotter
Committee
House Municipal Government & Housing
Summary
Select
This bill updates the Farmland Preservation Act by clarifying that cities, towns, and public corporations cannot charge agricultural landowners "connection fees" or impact fees when water utilities are extended past their property. It defines what a connection fee is, specifically excluding administrative or actual construction costs. Additionally, the bill removes a previous 20-year time limit on utility assessment protections. Now, if the farmland is ever developed or sold to someone who will not use it for agriculture, the utility fee protections are voided and the owner must pay the assessments, regardless of how much time has passed.
Sponsor
Analysis
Pros for Progressives
- Protects local food systems and community welfare by shielding farmers from burdensome utility fees that could force them out of business.
- Prevents corporate real estate developers from exploiting a previous 20-year loophole to avoid paying utility assessments when converting farmland into commercial or residential developments.
- Clarifies the definition of "connection fees" to prevent utility companies or municipalities from using loopholes to charge farmers unfair impact fees.
Cons for Progressives
- May reduce revenue for public water and sewer agencies, potentially shifting the cost of infrastructure expansion onto other working-class ratepayers.
- Still allows municipalities to charge farmers administrative and construction costs if they connect, which could remain financially burdensome for low-income agricultural workers.
- Fails to provide any direct financial assistance or subsidies to small-scale or disadvantaged farmers who actively want to connect to municipal water and sewer services.
Pros for Conservatives
- Protects private property owners and agricultural businesses from being forced to pay for government utility extensions they did not request.
- Supports traditional agricultural industries and rural lifestyles by reducing unnecessary government fees and financial burdens on landowners.
- Ensures that if farmland is sold for non-agricultural development, the developers must pay the utility assessments, protecting taxpayers from subsidizing private real estate development.
Cons for Conservatives
- Restricts the ability of municipal governments and utility corporations to collect impact fees, potentially interfering with local control and free-market utility pricing.
- Removes the 20-year expiration on the penalty for selling the land for development, placing a permanent restriction on the property owner's freedom to sell their land without triggering past assessments.
- Creates special exemptions for one specific industry (agriculture), which runs counter to the conservative principle of treating all businesses equally without government interference or favoritism.
Constitutional Concerns
None Likely. The bill regulates municipal utility fee assessments on private property and land-use definitions, which falls squarely within the state's legislative powers. It does not infringe upon free speech, due process, or involve unreasonable searches and seizures.
Impact Overview
Groups Affected
- Farmers
- Agricultural landowners
- Municipal utility departments
- Real estate developers
- Utility ratepayers
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
Amount unknown
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 06/04/2026 Introduced, referred to House Municipal Government & Housing
Bill Text
SECTION 1. Section 42-82-16 of the General Laws in Chapter 42-82 entitled "Farmland Preservation Act" is hereby amended to read as follows:
42-82-16. Charges for utility extension.
(a) No city, town, quasi-municipal corporation, or public corporation may assess the owner of an agricultural operation having frontage on a public roadway for the extension of water and sewer utilities past the property.
(b)"Connection fees", for purposes of this section, mean any impact fee or connection fee or any other fee designed to circumvent the prohibition contained in this section. "Connection fee" shall not include any administrative, overhead, or equipment fee or the construction costs related to extension of or connection to a water main.
(c) No city, town, quasi-municipal corporation or public corporation shall assess the owner of an agricultural operation as defined in § 2-23-4, or agricultural land as defined in § 42-82-2, in existence as of July 1, 2026 and having frontage on a public roadway, a connection fee for the extension of water utilities past the property. The protection afforded by this section shall be null and void and the assessments made if the owner of the agricultural operation develops or sells to other than a qualifying agricultural operation the property or farmland.
(b)(d) The owner of the agricultural operation may only be charged for the extension of sewer utilities if the owner has requested the utility extension. The agricultural operation may tie into any sewer utility extension made past that property for the normal cost of tie-in and no cost for the infrastructure improvement except for its base usable charge. The protection afforded by this section shall be null and void and the assessments made if the owner of the agricultural operation develops or sells to other than a qualifying agricultural operation the property or farmland within twenty (20) years of the date the utility extensions were operational.
SECTION 2. This act shall take effect upon passage.
42-82-16. Charges for utility extension.
(a) No city, town, quasi-municipal corporation, or public corporation may assess the owner of an agricultural operation having frontage on a public roadway for the extension of water and sewer utilities past the property.
(b)"Connection fees", for purposes of this section, mean any impact fee or connection fee or any other fee designed to circumvent the prohibition contained in this section. "Connection fee" shall not include any administrative, overhead, or equipment fee or the construction costs related to extension of or connection to a water main.
(c) No city, town, quasi-municipal corporation or public corporation shall assess the owner of an agricultural operation as defined in § 2-23-4, or agricultural land as defined in § 42-82-2, in existence as of July 1, 2026 and having frontage on a public roadway, a connection fee for the extension of water utilities past the property. The protection afforded by this section shall be null and void and the assessments made if the owner of the agricultural operation develops or sells to other than a qualifying agricultural operation the property or farmland.
SECTION 2. This act shall take effect upon passage.