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SB 3292

AN ACT RELATING TO TOWNS AND CITIES -- SUBDIVISION OF LAND

2026 Regular Session Introduced by John Burke and 2 co-sponsors

Rhode Island towns must require financial guarantees or completion for public improvements in subdivisions, with phased guarantees, multiple security forms, and up to 2 years of ma

05/21/2026 Committee recommended measure be held for further study
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Bill Summary · SB 3292

Summary of SB 3292 (Session: 2026, Rhode Island) — AN ACT RELATING TO TOWNS AND CITIES -- SUBDIVISION OF LAND

Purpose and intent

  • Establishes and formalizes requirements for guarantees and maintenance relating to public improvements (e.g., roads, utilities, drainage) required as part of land subdivisions and developments.
  • Enables permitting authorities to require financial guarantees to ensure completion and maintenance of improvements after subdivision approvals.

Key provisions and changes

  • General provisions for guarantees (45-23-46):

    • Before final plan approval, permitting authorities must require agreements for completion of required public improvements in one of three forms: (1) actual completion of construction, (2) improvement guarantees (financial assurances), or (3) a combination of both.
    • If improvements are constructed without a financial guarantee, work must be completed prior to final approval; municipal staff must inspect and approve the work timely.
    • Improvement guarantees must be sufficient to secure actual construction and full installation of all required improvements within a timeframe set by the permitting authority. The guarantee amount shall be based on actual cost estimates, reviewed and approved by the permitting authority; authorities may set guarantees higher than estimated costs to account for economic or construction variability.
    • Security instruments permitted must be accepted forms of financial security under local regulations, with at least three acceptable forms required; the approving authority cannot limit to a single form.
    • Local regulations must establish procedures for setting guarantee amounts, inspecting improvements, accepting improvements, and releasing guarantees to applicants. Procedures may allow partial releases as stages of improvements are completed and approved.
    • For phased developments/subdivisions, guarantee requirements can be specified for each phase.
    • The permitting authority may require maintenance guarantees for a period of up to two years after completion, inspection, and acceptance. Maintenance guarantees shall not exceed 10% of the original guarantee amount (or the original cost of improvements if no guarantee was required).
    • Procedures for acceptance of improvements require that once inspected and approved, improvements are accepted by the municipality or appropriate agency for maintenance and/or inclusion in the municipal system.
    • The municipality has the authority to enforce guarantees using all appropriate legal and equitable remedies.

  • Effective date:

    • The act takes effect upon passage.

Who/what is affected

  • Rhode Island municipalities and towns with permitting and planning authorities responsible for subdivision approvals.
  • Developers and applicants seeking subdivision approvals, as they will need to provide guarantees (and maintenance guarantees) for public improvements.
  • Municipal staff and administrative officers responsible for inspection, acceptance, and release of guarantees.
  • Property owners and the public who benefit from timely completion, maintenance, and reliability of public infrastructure.

Procedural and timeline aspects

  • Introduction date: May 15, 2026
  • Referred to Senate Housing & Municipal Government
  • No specific dates for guarantee implementation are provided beyond “upon passage” for the act to take effect.
  • The act allows phased improvements with phase-specific guarantee requirements.
  • Maintenance guarantees are limited to a maximum of two years and up to 10% of the original guarantee (or original cost if no guarantee).

Notable details

  • Requires at least three acceptable forms of financial security; authorities cannot be restricted to a single form.
  • Allows for partial releases of guarantees as stages of improvements are completed and approved.
  • Provides a mechanism for municipalities to access secured funds for cause if necessary (enforcement provisions).

If you’d like, I can provide a side-by-side comparison with current law or a plain-language FAQ for developers and municipal officials.

Compiled from official sources — confirm details with the bill’s official record.

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