2023 -- H 6290

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LC002639

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

     

     Introduced By: Representatives Carson, and Cortvriend

     Date Introduced: April 19, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-63.1-14 of the General Laws in Chapter 42-63.1 entitled "Tourism

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and Development" is hereby amended to read as follows:

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     42-63.1-14. Offering residential units through a hosting platform.

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     (a) For any rental property offered for tourist or transient use on a hosting platform that

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collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44-

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18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering

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the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform

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from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit

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for tourist or transient use. A hosting platform shall comply with the requirement imposed upon

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room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to

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apply. The division of taxation shall at the request of a city, town, or municipality confirm whether

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a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i).

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     (b) Any short-term rental property listed for rent on the website of any third-party hosting

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platform that conducts business in Rhode Island shall be registered with the department of business

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regulation. The registration shall provide the information necessary to identify the property

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pursuant to subsection (d) of this section. For purposes of this section, the term “short-term rental”

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means a person, firm, or corporation’s utilization, for transient lodging accommodations, not to

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exceed thirty (30) nights at a time.

 

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     (c) The department of business regulation shall contact all hosting platforms that list

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property in Rhode Island on their website for rent and that submit hotel taxes to the division of

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taxation and shall provide notice of the registration requirement, pursuant to this section, instructing

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the hosting platforms to notify their listed properties to register with the department of business

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regulation by December 31, 2021, or be subject to fines pursuant to § 42-63.1-14.1 42-63.1-14(i).

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     (d) The state registration pursuant to this section shall include:

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     (1) The principal place of business of the owner, or if outside the state, the agent for service

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of process or property manager for the owner;

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     (2) The phone number of the owner of the property and/or property manager;

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     (3) The email address of the property owner and/or property manager;

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     (4) The address of the rental property;

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     (5) The number of rooms for rent at the property;

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     (6) Whether the registrant rents or owns; and

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     (7) Intended use (entire space, private room, or shared space); and

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     (8) Registration number for the short-term rental property.

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     (e) The assigned registration number shall consist of numeric and alpha characters, the

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alpha characters shall correspond to the city/town where the property is located and shall be uniform

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for the remaining properties in said city/town.

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     (f) The department of business regulation shall notify all hosting platforms to contact all

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listed properties by December 31, 2021, to ensure compliance with this section and if the listed

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properties are not duly registered after six (6) months, the hosting platform shall remove the

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property listing from its website.

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     (g) The department of business regulation shall promulgate rules and regulations to

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correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to

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property owners registering with the department pursuant to this section.

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     (h) The department of business regulation shall create an online database to store all

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registered short-term rental units, and each unit shall have an online identification number in said

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database to correspond with subsection (e) of this section.

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     (i) Any owner of the property who or that fails to register with the department of business

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regulation as prescribed herein and lists the property as a short-term rental on a hosting platform

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website shall be subject to a civil fine as follows:

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     (1) Two hundred fifty dollars ($250) for the first thirty (30) days of non-compliance;

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     (2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of non-

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compliance; and

 

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     (3) One thousand dollars ($1,000) for more than sixty (60) days of non-compliance.

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     (j) The hosting platform shall only advertise rentals that are properly registered with the

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department of business regulation. The advertisement shall list the registration number for the

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short-term rental property. Violations shall be subject to the fines listed in subsection (i) of this

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section.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND

DEVELOPMENT

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     This act would require that a short-term rental property listed on a hosting platform be

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registered with the department of business regulation and be given a registration number. The

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hosting platform would be required to include the rental property registration number in the

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advertisement for the property or would face fines for noncompliance.

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     This act would take effect upon passage.

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