2020 -- S 2482

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LC004415

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - HOTELS - UNLICENSED RENTALS

ACT

     

     Introduced By: Senators Euer, McCaffrey, Seveney, DiPalma, and Sosnowski

     Date Introduced: February 13, 2020

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS"

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is hereby amended by adding thereto the following chapter:

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CHAPTER 14.1

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UNLICENSED RENTALS ACT

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     5-14.1-1. Short title.

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     This chapter shall be known and may be cited as the “Unlicensed Rentals Act.”

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     5-14.1-2. Definitions.

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     As used in the chapter, the following words and terms have the following meanings:

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     (1) "Contact" means the operator or the operator's representative who is the point of

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contact for any short-term rental guest for the duration of the guest's stay in the short-term rental.

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     (2) "Dwelling unit" means a residential dwelling of any type, including a single-family

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residence, apartment, condominium, cooperative unit, or room, in which a person may obtain

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living accommodations for less than thirty (30) days, but not including duly licensed bed and

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breakfast, inn, hotel or motel as defined in § 5-14-3.

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     (3) "Guest" means any person or persons renting a short-term rental unit.

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     (4) "Operator" or "short-term rental operator" means any person who receives payment

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for owning or operating a dwelling unit, or portion thereof, as a short-term rental unit.

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     (5) "Owner" means any person who, alone or with others, has title or interest in any

 

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building, property, dwelling unit, or portion thereof, with or without accompanying actual

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possession thereof, and including any person who as agent, executor, administrator, trustee, or

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guardian of an estate has charge, care, or control of any building, dwelling unit, or portion

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thereof. A person whose sole interest in any building, dwelling unit, or portion thereof is solely

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that of a lessee under a lease agreement is not considered an owner.

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     (6) "Short-term rental" means a lodging use, that is not a hotel or motel or bed and

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breakfast as defined in § 5-14-3, in which a dwelling unit, or portion thereof, that is offered or

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provided to a guest by a short-term rental operator for a fee for fewer than thirty (30) consecutive

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nights.

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     (b) "Short-term rental" does not include any of the following:

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     (i) A dwelling unit that is occupied by the owner for at least six (6) months during the

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calendar year and in which fewer than three (3) rooms are rented at any time;

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     (ii) A dwelling unit, or portion thereof, that is used by the same person for thirty (30) or

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more consecutive nights; or

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     (iii) A dwelling unit, or portion thereof, that is operated by an organization or government

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entity that is registered as a charitable organization with the secretary of state, state of Rhode

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Island, or is classified by the federal internal revenue service as a public charity or a private

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foundation, and provides temporary housing to individuals who are being treated for trauma,

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injury, or disease, or their family members.

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     (7) "Short-term rental platform" or "platform" means a person that provides a means

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through which an operator may offer a dwelling unit, or portion thereof, for short-term rental use,

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and from which the person or entity financially benefits. Merely publishing a short-term rental

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advertisement for accommodations does not make the publisher a short-term rental platform.

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     5-14.1-3. Consumer Safety.

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     (a) A short-term rental provider shall:

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     (1) Maintain the facility in a sanitary condition.

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     (2) Provide contact information to all short-term rental guests during a guest’s stay. The

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contact must be available to respond to inquiries by the guest(s) at the short-term rental during the

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length of stay.

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     (3) Provide that the short-term rental is in compliance with 450-RICR-00-00-8.

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     (4) Post the following information in a conspicuous place within each dwelling unit used

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as a short-term rental:

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     (i) The emergency contact for summoning police, fire or emergency medical services;

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     (ii) The floor plan indicating fire exits and escape routes;

 

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     (iii) The maximum occupancy limits; and

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     (iv) The contact information for the operator or designated contact.

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     (b) Short-term rental platforms must provide short-term rental operators with a summary

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of the consumer safety requirements in this section.

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     5-14.1-4. Insurance.

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     A short-term rental operator must maintain primary liability insurance to cover the short-

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term rental dwelling unit in the aggregate of not less than three hundred thousand dollars

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($300,000) or conduct each short-term rental transaction through a platform that provides equal or

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greater primary liability insurance coverage. Nothing in this section prevents an operator or a

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platform from seeking contributions from any other insurer also providing primary liability

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insurance coverage for the short-term rental transaction to the extent of that insurer's primary

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liability coverage limits.

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     5-14.1-5. Accessibility Requirements.

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     A short-term rental provider who offers to rent out three (3) or more dwelling units

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within one building must comply with all accessibility requirements to which places of public

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accommodation are subject.

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     5-14.1-6. Civil Rights.

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     Each short-term rental unit shall be deemed to be a public accommodation. It shall be

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unlawful for any person that owns, leases, rents, operates, manages or in any manner controls

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such public accommodation to withhold, deny, curtail, limit or discriminate concerning the full

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use of such public accommodation by any individual because of the individual's race, color, sex,

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gender identity, age, religion, disability, national origin, ancestry, sexual orientation, marital

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status, parental status or military discharge status.

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     5-14.1-7. Penalties.

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     Short-term rental listing services and short-term rental providers shall be fined five

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hundred dollars ($500) for each violation of this act.

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     SECTION 2. This act shall take effect on January 1, 2021.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - HOTELS - UNLICENSED RENTALS

ACT

***

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     This act would establish rules and regulations concerning rentals of residences for less

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than thirty (30) days.

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     This act would take effect on January 1, 2021.

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