The bill amends the General Laws in Chapter 42-63.1, "Tourism and Development," to update definitions and regulations concerning transient lodging accommodations. It broadens the definition of "hotel" to include various residential dwellings and clarifies the term "hosting platform" as entities that facilitate reservations and are responsible for tax collection and remittance. The definition of "occupancy" is also refined to exclude certain long-term arrangements. Furthermore, the bill prevents cities, towns, or municipalities from prohibiting the offering of residential units for tourist or transient use on hosting platforms that comply with tax regulations. It requires short-term rental properties to register with the department of business regulation, with annual renewals tied to the original registration date, and removes the previous compliance deadline of December 31, 2021.

The bill mandates the creation of an online database for registered short-term rental units and introduces a tiered fine system for property owners who fail to register their properties for short-term rental. It also requires that a valid registration number and expiration date be displayed on all advertisements for short-term rentals, with hosting platforms enforcing this requirement. Hosting platforms that fail to comply will be fined $250 per day for each violation. Additionally, hosting platforms must submit quarterly reports to the department of business regulation with detailed information about the listings. The act will take effect on January 30, 2025.