The bill amends Section 42-63.1-14 of the General Laws in Chapter 42-63.1 entitled "Tourism and Development" to address the offering of residential units through hosting platforms. It removes previous legal language that prevented cities, towns, or municipalities from prohibiting the offering of rental properties for tourist or transient use on hosting platforms that collect and remit applicable taxes. The bill requires that any short-term rental property listed on a hosting platform's website and conducting business in Rhode Island must be registered with the Department of Business Regulation. The registration must include information to identify the property, such as the owner's principal place of business, contact information, property address, number of rooms for rent, and whether the property is rented or owned.

The bill also outlines the process for hosting platforms to notify listed properties of the registration requirement, with a deadline of December 31, 2021. Failure to register can result in fines, and hosting platforms are required to remove unregistered properties after six months. The Department of Business Regulation is tasked with creating an online database for registered short-term rental units and enforcing the registration process, including the ability to charge a registration fee. Non-compliance with registration requirements will result in escalating civil fines for property owners. The act will take effect upon passage, and it removes the municipal preemption on prohibiting the offering of residential units for tourist or transient use through a hosting platform.

Statutes affected:
6097: 42-63.1-14