RI legislation session starts with overrides of Governor vetoes

PROVIDENCE, R.I. (WLNE)- The General Assembly voted to override the governor’s veto of legislation to require short-term rental properties listed for rent on any third-party website that conducts businesses in Rhode Island to be registered with the Department of Business Regulation.

The legislation sponsored by Representative Lauren H. Carson and Senator Dawn Euer passed the General assembly on July 1, now becoming law, will create a statewide registry of information about the properties to ensure safety compliance and tax regulations, as well as access to owners information in case of an emergency.

The efforts to battle anonymity from the third-party platforms to address identification and taxation have created challenges in public safety, housing availability, and equity in the hospitality industry. With the lack of responsibility between renter and owner, the possibility of “out-of-control” gatherings can occur, like during Memorial Day Weekend when a University of Rhode Island student was murdered at a short-term rental site in Newport.

“Short-term rentals have become a thriving industry. In places like our districts in Newport, investors have been buying up housing to rent in this way, and the state is not tracking where these businesses are operating. It’s impossible to ensure safety or compliance with laws when we don’t even know where the rentals are. Rhode Island needs to keep up with the evolving rental industry and adopt a statewide registry,” said Senator Euer (D-Dist. 13, Newport, Jamestown).

“Absent much-needed state action, the communities on Aquidneck Island — where short-term rentals are widespread in neighborhoods — have been paying a vendor to operate a local registry so they can track down property owners when there are issues,” said Representative Carson (D-Dist. 75, Newport).  “In a state as small as Rhode Island, it doesn’t make any sense to leave this job to our overburdened municipalities. It would be simpler and less expensive to have single statewide registry, and it would allow uniformity. This is an issue for every community, because anyone anywhere can list a room for rent. A statewide registry isn’t a heavy lift for anyone, and it would give the state and the municipalities the information they need to keep everyone safe and sound.”