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:

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

and Development" is hereby amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

exceed thirty (30) nights at a time.

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

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

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

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

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

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

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

of process or property manager for the owner;

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

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

     (4) The address of the rental property;

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

     (6) Whether the registrant rents or owns; and

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

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

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

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

for the remaining properties in said city/town.

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

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

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

property listing from its website.

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

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

property owners registering with the department pursuant to this section.

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

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

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

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

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

website shall be subject to a civil fine as follows:

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

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

compliance; and

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

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

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

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

section.

     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

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

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

advertisement for the property or would face fines for noncompliance.

     This act would take effect upon passage.

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