The bill modifies the General Laws in Chapter 42-63.1, "Tourism and Development," to update the definitions and regulations concerning transient lodging accommodations. It broadens the definition of "hotel" to include various residential dwellings and clarifies the term "hosting platform" to cover entities that facilitate reservations for tourist or transient use. The definition of "occupancy" is also refined to exclude certain long-term arrangements. Furthermore, the bill mandates that hosting platforms must collect and remit taxes and that cities and towns cannot prohibit the offering of residential units for transient use if they comply with these tax requirements.

The bill also revises the registration process for short-term rental properties, requiring annual renewals and the removal of listings from hosting platforms if the property is not registered. An online database for registered short-term rentals will be established, and property owners who fail to register will face a tiered fine system. Hosting platforms must enforce the display of valid registration numbers on listings and provide quarterly reports to the department of business regulation. The act will take effect on January 30, 2025, and hosting platforms that do not comply with the listing requirements will be fined $250 per day for each violation.