The bill updates Rhode Island's General Laws in Chapter 42-63.1, specifically sections 42-63.1-2 and 42-63.1-14, to refine the definitions and regulations pertaining to the tourism and lodging industry. Key changes include an expanded definition of "hotel" to cover residential dwellings available for rent, a clarified definition of "hosting platform" to include services that facilitate reservations for tourist or transient use, and an extended definition of "owner" to include lessees. Additionally, the term "occupancy" now excludes rental arrangements exceeding thirty consecutive days or one calendar month. The bill also revises the registration process for short-term rental properties, requiring annual renewals on the anniversary of the original registration and eliminating the previous deadline of December 31, 2021. Registration forms must be completed before listing by a hosting platform, and the assigned registration number is valid for the year it is assigned.

The legislation imposes new regulations on hosting platforms and property owners, including the requirement for hosting platforms to remove unregistered listings within fourteen days of notification from the department after the registration period expires. An online database for registered short-term rental units will be established, with each unit assigned a unique identification number. Non-compliant property owners will face a tiered fine system, with penalties ranging from $250 to $1,000 based on the length of non-compliance. Hosting platforms must display a property's valid registration number and expiration date on the listing and are subject to a $250 daily fine for each listing that fails to comply. Additionally, hosting platforms are required to submit quarterly reports to the department with detailed information on their listings. The act will take effect on January 30, 2025.