2023 -- H 6449

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LC002990

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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H O U S E   R E S O L U T I O N

CREATING A SPECIAL LEGISLATIVE COMMISSION TO REVIEW AND PROVIDE

RECOMMENDATIONS FOR POLICIES THAT DEAL WITH NUMEROUS ECONOMIC

AND SOCIAL SHORT-TERM RENTALS ISSUES CONCURRENTLY

     Introduced By: Representative Lauren H. Carson

     Date Introduced: May 26, 2023

     Referred To: House Municipal Government & Housing

     WHEREAS, Short-term rental accommodations account for more than 25 percent of the

United States lodging market with the rise of companies like Airbnb creating a booming market

that provides affordable short-term rentals for travelers; and

     WHEREAS, A short-term rental (STR) is usually defined as a rental of a residential

dwelling unit or accessory building for periods of less than 30 consecutive days and may be

referred to as vacation rentals, transient rentals, short-term vacation rentals, or resort dwelling

units; and

     WHEREAS, While beneficial to the individual homeowner, oftentimes, the use of short-

term rentals produces significant consequences for the surrounding community, creating the need

to balance the rights of individual property owners with those of the community; and

     WHEREAS, While current studies have examined the economic and social benefits of

short-term rentals with recommendations to lower the potential drawbacks, it is necessary to

review the creation of policies that deal with numerous issues concurrently rather than addressing

each potential issue individually; now, therefore be it

     RESOLVED, That a special legislative commission be and the same is hereby created

consisting of fifteen (15) members: four (4) of whom shall be members of the Rhode Island

House of Representatives, not more than three (3) from the same political party, to be appointed

by the Speaker of the House; one of whom shall be the President of the Rhode Island Hospitality

Association, or designee; one of whom shall be the Director of the Rhode Island League of Cities

and Towns, or designee; one of whom shall be the Tax Administrator at Rhode Island Division of

Taxation, or designee; one of whom shall be a member of a regional Tourism District

Organization, to be appointed by the Speaker of the House; one of whom shall be the Mayor of

the City of Newport, or designee; one of whom shall be the Mayor of the City of Warwick, or

designee; one of whom shall be the owner of a small, owner-occupied, short-term rental (STR), to

be appointed by the Speaker of the House; one of whom shall be the owner of a large (over 8

units), short-term rental (STR) property, to be appointed by the Speaker of the House; one of

whom shall be a representative of a RI Planning/Zoning Association, to be appointed by the

Speaker of the House; one of whom shall be the President of the RI Association of REALTORS,

or designee; and one of whom shall be the Executive Director of The Rhode Island Short Term

Rental Association, or designee.

     In lieu of any appointment of a member of the legislature to a legislative study

commission, or any commission created by a General Assembly resolution, the appointing

authority may appoint a member of the general public to serve in lieu of a legislator; provided

that, the majority leader or the minority leader of the political party which is entitled to the

appointment consent to the member of the general public.

     The purpose of said commission shall be to study the effects of short-term rentals on the

State of Rhode Island and on Rhode Island municipalities. The study shall include, but not be

limited to:

     • Review of all current and existing RI Statutes on short-term rentals;

     • An update on DBR registrations process and enforcement;

     • Municipal vs. state regulation: pre-emption;

     • Taxation: whole house, impact fee;

     • Taxation: accuracy of hotel and sales tax collection/review of the process;

     • Impact on year-round and local housing market and neighborhoods;

     • Health and safety concerns and issues; and

     • Best practice in other states/communities.

     In addition, the commission shall:

     • Establish a working definition of "short term rentals";

     • Engage the public and community stakeholders including property owners,

industry representatives, Police and Fire Chiefs, and zoning and planning officials, etc., for input;

     • Develop an understanding of the nature, extent, and scope of short-term rental

activity and identify specific benefits, problems, or issues associated with "short-term rentals" and

how it varies from neighborhood to neighborhood, and municipality to municipality.

LC002990 - Page 2 of 4

     Forthwith upon passage of this resolution, the members of the commission shall meet at

the call of the Speaker of the House and organize and shall select, from among the legislators, a

chairperson.

     Vacancies in said commission shall be filled in like manner as the original appointment.

     The membership of said commission shall receive no compensation for their services.

     All departments and agencies of the state shall furnish such advice and information,

documentary and otherwise, to said commission and its agents as is deemed necessary or

desirable by the commission to facilitate the purposes of this resolution.

     The Speaker of the House is hereby authorized and directed to provide suitable quarters

for said commission; and be it further

     RESOLVED, That the commission shall report its initial findings and recommendations

to the House of Representatives on or before March 15, 2024, with submission of subsequent

findings reported biannually, and said commission shall expire on April 15, 2026.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

H O U S E   R E S O L U T I O N

CREATING A SPECIAL LEGISLATIVE COMMISSION TO REVIEW AND PROVIDE

RECOMMENDATIONS FOR POLICIES THAT DEAL WITH NUMEROUS ECONOMIC

AND SOCIAL SHORT-TERM RENTALS ISSUES CONCURRENTLY

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     This resolution would create a fifteen (15) member legislative commission to review and

provide recommendations for concurrent policies dealing with numerous economic and social

short-term rentals issues, and said commission would report back by March 15, 2024, with

submission of subsequent findings reported biannually, and said commission would expire on

April 15, 2026.

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LC002990

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