The bill proposes amendments to the General Laws in Chapter 42-63.1, "Tourism and Development," to update the definitions and regulations pertaining to the tourism and lodging industry in Rhode Island. Key changes include the expansion of the definition of "hotel" to encompass a wider range of residential dwellings used for transient lodging and the introduction of the term "hosting platform," which refers to an electronic system that facilitates reservations for tourist or transient use. The bill clarifies that hosting platforms are responsible for collecting and remitting taxes, and it defines "occupancy" to exclude certain long-term arrangements. Additionally, the bill defines "tourist or transient" as anyone using a residential unit for less than thirty consecutive days. It also prohibits local governments from banning the listing of rental properties on compliant hosting platforms and requires short-term rental properties to be registered with the Department of Business Regulation, including the provision of identifying information and annual renewal of registration.

The bill further details the consequences of non-compliance with the new regulations. If a property is not registered, hosting platforms must remove the listing within 14 days of notification from the department. Property owners who fail to register their property as a short-term rental will face escalating fines, starting at $250 for the first 30 days and increasing to $1,000 for non-compliance beyond 60 days. Additionally, the bill requires that short-term rental listings display a valid registration number and its expiration date, with hosting platforms facing a $250 fine per day per violation for failing to enforce this. Hosting platforms are also required to submit quarterly reports to the department of business regulation with detailed information about the listings. The act is scheduled to take effect on January 30, 2025.