SMITHFIELD, R.I.—As various town-gown battles simmer throughout New England, this small community has just received a rare weapon: the right to bill a local university for public-safety services.

Gov. Lincoln Chafee recently signed legislation granting the town the ability to charge private Bryant University an annual fee for taxpayer-funded police, fire and rescue response. The law may be the first of its kind, and the university's president has said he plans to challenge it in court.

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