2021 -- S 0504

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LC000609

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - HOTELS - UNLICENSED RENTALS

ACT

     Introduced By: Senators Euer, McCaffrey, DiPalma, and Sosnowski

     Date Introduced: March 04, 2021

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS"

is hereby amended by adding thereto the following chapter:

CHAPTER 14.1

UNLICENSED RENTALS ACT

     5-14.1-1. Short title.

     This chapter shall be known and may be cited as the “Unlicensed Rentals Act.”

     5-14.1-2. Definitions.

     As used in the chapter, the following words and terms have the following meanings:

     (1) "Contact" means the operator or the operator's representative who is the point of contact

for any short-term rental guest for the duration of the guest's stay in the short-term rental.

     (2) "Dwelling unit" means a residential dwelling of any type, including a single-family

residence, apartment, condominium, cooperative unit, or room, in which a person may obtain living

accommodations for less than thirty (30) days, but not including duly licensed bed and breakfast,

inn, hotel or motel as defined in § 5-14-3.

     (3) "Guest" means any person or persons renting a short-term rental unit.

     (4) "Operator" or "short-term rental operator" means any person who receives payment for

owning or operating a dwelling unit, or portion thereof, as a short-term rental unit.

     (5) "Owner" means any person who, alone or with others, has title or interest in any

building, property, dwelling unit, or portion thereof, with or without accompanying actual

possession thereof, and including any person who as agent, executor, administrator, trustee, or

guardian of an estate has charge, care, or control of any building, dwelling unit, or portion thereof.

A person whose sole interest in any building, dwelling unit, or portion thereof is solely that of a

lessee under a lease agreement is not considered an owner.

     (6) "Short-term rental" means a lodging use, that is not a hotel or motel or bed and breakfast

as defined in § 5-14-3, in which a dwelling unit, or portion thereof, that is offered or provided to a

guest by a short-term rental operator for a fee for fewer than thirty (30) consecutive nights.

     (b) "Short-term rental" does not include any of the following:

     (i) A dwelling unit that is occupied by the owner for at least six (6) months during the

calendar year and in which fewer than three (3) rooms are rented at any time;

     (ii) A dwelling unit, or portion thereof, that is used by the same person for thirty (30) or

more consecutive nights; or

     (iii) A dwelling unit, or portion thereof, that is operated by an organization or government

entity that is registered as a charitable organization with the secretary of state, state of Rhode Island,

or is classified by the federal internal revenue service as a public charity or a private foundation,

and provides temporary housing to individuals who are being treated for trauma, injury, or disease,

or their family members.

     (7) "Short-term rental platform" or "platform" means a person that provides a means

through which an operator may offer a dwelling unit, or portion thereof, for short-term rental use,

and from which the person or entity financially benefits. Merely publishing a short-term rental

advertisement for accommodations does not make the publisher a short-term rental platform.

     5-14.1-3. Consumer Safety.

     (a) A short-term rental provider shall:

     (1) Maintain the facility in a sanitary condition.

     (2) Provide contact information to all short-term rental guests during a guest’s stay. The

contact must be available to respond to inquiries by the guest(s) at the short-term rental during the

length of stay.

     (3) Provide that the short-term rental is in compliance with 450-RICR-00-00-8.

     (4) Post the following information in a conspicuous place within each dwelling unit used

as a short-term rental:

     (i) The emergency contact for summoning police, fire or emergency medical services;

     (ii) The floor plan indicating fire exits and escape routes;

     (iii) The maximum occupancy limits; and

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     (iv) The contact information for the operator or designated contact.

     (b) Short-term rental platforms must provide short-term rental operators with a summary

of the consumer safety requirements in this section.

     5-14.1-4. Insurance.

     A short-term rental operator must maintain primary liability insurance to cover the short-

term rental dwelling unit in the aggregate of not less than three hundred thousand dollars ($300,000)

or conduct each short-term rental transaction through a platform that provides equal or greater

primary liability insurance coverage. Nothing in this section prevents an operator or a platform

from seeking contributions from any other insurer also providing primary liability insurance

coverage for the short-term rental transaction to the extent of that insurer's primary liability

coverage limits.

     5-14.1-5. Accessibility Requirements.

     A short-term rental provider who offers to rent out three (3) or more dwelling units within

one building must comply with all accessibility requirements to which places of public

accommodation are subject.

     5-14.1-6. Civil Rights.

     Each short-term rental unit shall be deemed to be a public accommodation. It shall be

unlawful for any person that owns, leases, rents, operates, manages or in any manner controls such

public accommodation to withhold, deny, curtail, limit or discriminate concerning the full use of

such public accommodation by any individual because of the individual's race, color, sex, gender

identity, age, religion, disability, national origin, ancestry, sexual orientation, marital status,

parental status or military discharge status.

     5-14.1-7. Penalties.

     Short-term rental listing services and short-term rental providers shall be fined five hundred

dollars ($500) for each violation of this act.

     SECTION 2. This act shall take effect on January 1, 2022.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS - HOTELS - UNLICENSED RENTALS

ACT

***

     This act would establish rules and regulations concerning rentals of residences for less than

thirty (30) days.

     This act would take effect on January 1, 2022.

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