The bills signed Tuesday end Rhode Island's status as the only state that allowed indoor prostitution statewide. The practice is legal in parts of Nevada. The new law took effect immediately.
Carcieri praised the new law as a step forward and said it ended Rhode Island's "terrible" distinction.
Rhode Island lawmakers inadvertently created the loophole in 1980 when they passed a law cracking down on prostitutes and their customers who operated in public. But it was silent on paid sex in private.