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WAILUKU - Legislation for bed-and-breakfast operations took a step closer to passage Thursday when the council Planning Committee voted to recommend approval of the draft regulations and send them to the full Maui County Council for a decision.

The move came after the committee had been working on the B&B bill for five months, under pressure from the vacation rental industry to pass regulations as quickly as possible. Vacation rental operators without permits currently face enforcement and shutdown by the county, and the legislation will create a clearer process for permitting and regulation of bed-and-breakfasts.

Planning Committee Chairwoman Gladys Baisa said she was relieved to take action on the bill.

"It's been a lot of work," she said. "But I do believe it's long past the time we have B&B legislation."

The committee still must tackle the second part of the package: regulations for transient vacation rentals.

Bed-and-breakfasts have an owner living on-site, while vacation rentals would be allowed to have an off-site manager or owner. The debate on vacation rentals is expected to be more difficult, with one of the pending bills barring permits that now allow them outside the resort/hotel district. The bill would disallow vacation rentals by county conditional permit.

Baisa said her committee also needs to act on a bill to provide for home occupations as part of the effort to develop a comprehensive county policy, but said she expects there will be no action on the pending matters until the new County Council takes office on Jan. 2.

The committee voted 4-0 to recommend the legislation to permit B&Bs, with Council Member Riki Hokama excused.

A key provision of the bill is a cap on the number of B&Bs allowed in each district. Committee members voted Thursday to increase the total number of operations allowed on the island from 302 to 400: 48 in Hana, 100 in South Maui, 40 Upcountry, 88 in Paia-Haiku, 36 in Central Maui and 88 in West Maui.

Other major points of the bill include:

* The landowner must live on the same lot as the B&B, but could live in a separate house.

* B&Bs could have up to six bedrooms each on Maui or Lanai, or up to three bedrooms on Molokai.

* B&Bs on agriculturally zoned land more than 5 acres must show at least $35,000 in revenue from agricultural operations. B&Bs could operate on smaller agricultural lots without a revenue requirement as long as the lot existed before Nov. 1 and a farm plan is in place.

* Guests would have to follow "house policies," including quiet hours from 9 p.m. to 8 a.m., no amplified sound that can be heard off the property, and no on-street parking overnight.

* Homes used for B&Bs could not qualify for the homeowner property tax exemption.

* Most permits would be approved by the planning director, but some permits, such as applications that have drawn protests from neighbors, would go to the Maui Planning Commission for approval.

* An initial B&B permit would be valid for three years, renewals would be valid for five years.

Maui Vacation Rental Association board member Tom Croly said Thursday that after more than a year of hearings, he was happy to see the legislation move forward.

"I'm very pleased," he said. "I think we made some very positive steps, and I look forward to it smoothly getting through council."

The package of bills was prepared by Planning Director Jef Hunt after Mayor Charmaine Tavares decided last year the administration would enforce county laws barring short-term rentals outside the resort/hotel district. The county Planning Department notified unpermitted vacation rental operators they would be cited for land use violations beginning in January, causing many to shut down. A number had pending applications for B&B permits or conditional use and special use permits.

After undergoing review by the three planning commissions, the Planning Department proposals were forwarded to the council on Feb. 22, just before the council began its annual county budget review. Baisa's Planning Committee began discussions on the bills in June.

Vacation rental worker Susan Nell, who has attended several of the committee meetings, said she was glad the legislation would allow B&Bs to exist.

"They gave us a fighting chance," she said.

But Maui Farm Bureau President Warren Watanabe continued to question whether state law allowed overnight accommodations in agricultural districts at all. The Farm Bureau has warned vacation rentals on agricultural properties could increase values for surrounding farm land, and cause taxes to escalate for legitimate farmers.

"We still have concerns," he said.

* Ilima Loomis can be reached at iloomis@mauinews.com.

This story includes a correction to clarify the purpose of a pending bill.