2023 -- S 1007 ======== LC002308 ======== S TATE OF RHODE IS LAND IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2023 ____________ A N A C T RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT Introduced By: Senators Gu, Euer, Kallman, Mack, Valverde, Lauria, Zurier, Miller, and DiMario Date Introduced: May 15, 2023 Referred To: Senate Housing & Municipal Government 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 1 and Development" is hereby amended to read as follows: 2 42-63.1-14. Offering residential units through a hosting platform. 3 (a) For any rental property offered for tourist or transient use on a hosting platform that 4 collects and remits applicable sales and hotel taxes in compliance with §§ 44-18-7.3(b)(4)(i), 44-5 18-18, and 44-18-36.1, cities, towns, or municipalities shall not prohibit the owner from offering 6 the unit for tourist or transient use through such hosting platform, or prohibit such hosting platform 7 from providing a person or entity the means to rent, pay for, or otherwise reserve a residential unit 8 for tourist or transient use. A hosting platform shall comply with the requirement imposed upon 9 room resellers in §§ 44-18-7.3(b)(4)(i) and 44-18-36.1 in order for the prohibition of this section to 10 apply. The division of taxation shall at the request of a city, town, or municipality confirm whether 11 a hosting platform is registered in compliance with § 44-18-7.3(b)(4)(i). 12 (b) Any short-term rental property listed for rent on the website of any third-party hosting 13 platform that conducts business in Rhode Island shall be registered with the department of business 14 regulation. The assigned registration number corresponding to subsection (h) of this section shall 15 be displayed on any advertising or listing of the property for short-term rental. The registration 16 process shall provide the information necessary to identify the property pursuant to subsection (d) 17 of this section. For purposes of this section, the term “short-term rental” means a person, firm, or 18 LC002308 - Page 2 of 4 corporation’s utilization, for transient lodging accommodations, not to exceed thirty (30) nights at 1 a time. 2 (c) The department of business regulation shall contact all hosting platforms that list 3 property in Rhode Island on their website for rent and that submit hotel taxes to the division of 4 taxation and shall provide notice of the registration requirement, pursuant to this section, instructing 5 the hosting platforms to notify their listed properties to register with the department of business 6 regulation by December 31, 2021, or be subject to fines pursuant to § 42-63.1-14.1. 7 (d) The state registration pursuant to this section shall include: 8 (1) The principal place of business of the owner, or if outside the state, the agent for service 9 of process or property manager for the owner; 10 (2) The phone number of the owner of the property and/or property manager; 11 (3) The email address of the property owner and/or property manager; 12 (4) The address of the rental property; 13 (5) The number of rooms for rent at the property; 14 (6) Whether the registrant rents or owns; and 15 (7) Intended use (entire space, private room, or shared space). 16 (e) The assigned registration number shall consist of numeric and alpha characters, the 17 alpha characters shall correspond to the city/town where the property is located and shall be uniform 18 for the remaining properties in said city/town. 19 (f) The department of business regulation shall notify all hosting platforms to contact all 20 listed properties by December 31, 2021 2023, to ensure compliance with this section and if the 21 listed properties are not duly registered and compliant with this section after six (6) months, the 22 hosting platform shall remove the property listing from its website. 23 (g) The department of business regulation shall promulgate rules and regulations to 24 correspond with and enforce this section and § 42-63.1-14.1 and may charge a registration fee to 25 property owners registering with the department pursuant to this section. 26 (h) The department of business regulation shall create an online database to store all 27 registered short-term rental units, and each unit shall have an online identification number in said 28 database to correspond with subsection (e) of this section assigned registration number in the 29 database. The assigned registration number shall be given to the owner of the property upon 30 registration, and the assigned registration shall remain internal to the department of business 31 regulation and shall not be displayed publicly in the online database. 32 (i) Any owner of the property who or that fails to register with the department of business 33 regulation as prescribed herein and lists the property as a short-term rental on a hosting platform 34 LC002308 - Page 3 of 4 website shall be subject to a civil fine as follows: 1 (1) Two hundred fifty dollars ($250) for the first thirty (30) days of non-compliance; 2 (2) Five hundred dollars ($500) for between thirty-one (31) and sixty (60) days of non-3 compliance; and 4 (3) One thousand dollars ($1,000) for more than sixty (60) days of non-compliance. 5 SECTION 2. This act shall take effect upon passage. 6 ======== LC002308 ======== LC002308 - Page 4 of 4 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO STATE AFFAIRS AND GOVERNMENT -- TOURISM AND DEVELOPMENT *** This act would allow the department of business regulation to create an assigned 1 registration number for any short-term rental property listed for rent on a third-party hosting 2 platform. This assigned registration number would need to be posted on the listing of the property 3 for short-term rent. 4 This act would take effect upon passage. 5 ======== LC002308 ========