| Chapter 425 |
| 2021 -- S 0501 SUBSTITUTE B Enacted 01/04/2022 |
| A N A C T |
| RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT |
Introduced By: Senators Euer, DiPalma, McCaffrey, Goodwin, and DiMario |
| Date Introduced: March 04, 2021 |
| 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 residential unit 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 of such residential unit 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 who list |
| property in Rhode Island on their website for rent and who 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. |
| (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). |
| (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 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 |
| (3) One thousand dollars ($1,000) for more than sixty (60) days of non-compliance. |
| SECTION 2. Chapter 42-63.1 of the General Laws entitled "Tourism and Development" is |
| hereby amended by adding thereto the following section: |
| 42-63.1-14.1. Properties listed on hosting platform websites. |
| Notwithstanding the provisions of § 42-63.1-14(a), a hosting platform shall not conduct |
| business involving a short-term rental property if that property has not been registered with the |
| department of business regulation. Any future property that is added to the hosting platform website |
| for rent must first be registered with the department of business regulation before it appears on any |
| website for rent. |
| SECTION 3. This act shall take effect on October 1, 2021. |
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| LC000646/SUB B |
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