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Improving Regulation in Washington State
Washington Economic Development Association2013 Winter Conference
February 11, 2013
Larisa Benson, Director of Performance AuditDeborah Stephens, Senior Performance Auditor
Washington State Auditor’s Office• What we do• Our focus on improving regulation
State level: Our first audit in a series• Inventory of regulations• Website access to business information• Streamlining business rules
Local level: Local Government Performance Center• How we help local governments improve performance• Examples• Kitsap success story
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Today’s Presentation
Lottery
Agriculture
Secretary of State
Ecology
Licensing
Employment Security
Why Focus on Regulation?
Revenue
• Businesses and citizens face a complex maze of state and local laws and regulations in Washington
• For example, someone wanting to open a convenience store with a gas pump needs up to a dozen or more regulatory approvals
Local
regulations
Health
Labor & Industries
Liquor Control Board
Social & Health Services
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• Regulation is a core government function
• Businesses and citizens need clear, timely regulatory processes to minimize the cost to regulators and those being regulated
• Businesses and citizens are subject to penalties and fines when they don’t comply with regulations
• Citizens want better results from government
Two approaches to improving regulation
• Series of Regulatory Reform Audits
• Local Government Performance Center—Permit Streamlining
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Why Focus on Regulation?
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Our Regulatory Reform Audits
Inventory of Regulations
Streamlining Business Rules
Website Access to Business Information
Permit Timeliness
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Inventory of Regulations
What we did
• The state did not have an inventory of business regulations, so we created one
• Scope: Business permits, licenses, and inspections- 26 regulatory agencies
- 1,377 permits, licenses and inspections
- Agencies helped by checking for accuracy
- The inventory will form the foundation for all future audits about regulatory reform
- Published onlinewww.sao.wa.gov/EN/Audits/PerformanceAudit/Pages/RegReform.aspx
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Inventory of Regulations
The inventory is published on our website
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Inventory of Regulations
Sample spreadsheet – Dept. of Financial Institutions
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Our First Regulatory Reform Audits
Inventory of Regulations
Streamlining Business Rules
Website Access to Business Information
Permit Timeliness
• Do Washington state government websites effectively provide regulatory information to businesses?
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Website Access to Business Information
Our audit question
What we did
• Reviewed Washington’s three central business websites for complete information
• Reviewed 26 agency websites for complete information and ease of use
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Created in 2006 as the state’s “single, secure, online portal” for businesses.
Its “Licenses, Permits, and Inspections” tab contains:•Links to 7 of the state’s 26 regulatory agencies•Links to BLS and ORA websites
Website Access to Business Information
What we found
Business.wa.gov
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First created in 1977 as the state’s “one-stop master licensing system.”
It provides:
• 16% of the state’s business licenses
• 2 of the top 10 most- requested licenses
Website Access to Business Information
What we found
Business Licensing Service (BLS)
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Required to provide “information on….permitting and regulatory requirements”.
Its handbook contains:
•Information on 32% of the state’s business permits
• Permits are exclusively environmental
Website Access to Business Information
What we found
Office of Regulatory Assistance (ORA)
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• Regulatory information on 26 agency websites is incomplete
• No agency provided all regulatory information for all permits and licenses— Purpose
— Who needs it
— How to apply
— Fee
— Processing time
• The business portions of the agency websites do not share a common look and feel, and they are not all easy to use
23% of permits and licenses tell businesses online how long it will take the agency to process them
Website Access to Business Information
What we found
To help facilitate the longer-term vision of a one-stop portal for all business transactions while meeting current user needs:
•Continue to pursue a one-stop in the long term
•Add content to the three central business websites in the short term
•Develop standards for clear, consistent, and usable business portions of agency websites
•Provide complete regulatory information on agency websites
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Website Access to Business Information
Recommendations
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Our First Regulatory Reform Audits
Inventory of Regulations
Streamlining Business Rules
Website Access to Business Information
Permit Timeliness
• Do Washington regulatory agencies have processes in place to streamline their business rules consistent with governors’ orders?
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Streamlining Business Rules
What we did
Our audit question
• Surveyed agencies to learn about their streamlining practices based on governors’ executive orders
• Visited 11 agencies that said they did extensive streamlining
• Agencies are streamlining some, but not all, of their rules
• Several agencies could improve their streamlining efforts by documenting a regular, criteria-based process
• None of the agencies are measuring results to see if streamlining is producing its intended effects
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Streamlining Business Rules
What we found
To ensure existing regulatory rules are necessary, clear, and consistent:
•Improve rule streamlining processes
•Improve accountability
- Holding agencies accountable for measurable results
- Monitoring results through a reporting structure
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Streamlining Business Rules
Recommendations
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Our Regulatory Reform Audits
Inventory of Regulations
Streamlining Business Rules
Website Access to Business Information
Permit Timeliness
• Agency permit processing information
• Business engagement— Survey
— Focus groups
• Permit process evaluations
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Permit Timeliness
Our audit questions
• How much time does it take regulatory agencies to make business permit decisions?
• Can agencies reduce the time it takes them to make permit decisions?
What we are doing
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Local Government Performance Center
What is the Local Government Performance Center?The Local Government Performance Center is an initiative within the State Auditor’s Office. We offer tools and training to help local leaders who want their governments to work better, cost less, and improve the value of their services to citizens.
Our goal: better results for citizens and customers at lower cost to local governments and taxpayers
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Local Government Performance Center
What local government leaders told us they need help with:
• Evaluating and improving local government performance
• Managing more cost effectively; more responsive to customers
• Transparent reporting on performance and engaging citizens
Local Government Performance Center Resources include:
• An online resource center with downloadable tools and examples
• www.sao.wa.gov/performancecenter
• Training on how to improve government services
• Customized on-site training sessions (on request and within available resources)
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How we help local governments improve performance
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Five examples of what we’re doing
1) Demystifying tools like “lean management” • Training plus creating a peer-support network to help governments learn and use process
improvement methods to develop faster, cheaper delivery systems.
2) Cell phone savings: one audit, many applications• Sharing lessons learned from a recent state audit in a checklist format helps local
governments like Pierce County save money on their cell phone costs.
3) Citizen engagement tools and resources• Citizen survey project with Walla Walla engaged citizens and influenced budget decisions.
4) Performance measure training and assessments• Training on performance measures plus auditor assessments of how local governments use
performance data and ways they can improve. City of Dupont, Thurston County Sheriff.
5) Public safety staffing model analysis• Helps local public safety leaders evaluate costs of overtime versus adding staff.• Training formats include classroom style, webinar, and on-site.
What does it mean to “lean out” a permitting process?
Kitsap County: Pre-lean Map
Before . . . and After!
Kitsap County: Post-lean Map
The New Lean Permitting Office
Pod
Status Board
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Kitsap County Permit Streamlining Results
What Pre – Lean Time Post-Lean Time
Avg # Calendars Days to First Notification of Permit Issues
21 6 (Target 7)
Avg # Calendar Days Permit Approval (in house processing time)
26/30 8 (Target 18)
Avg # Calendar Days to Issue 41 18
Avg First Pass Yield (Approved on first try)
4% 50% (Target 85% July 2013)
Avg # Calendars Days Returned 69 14
Reason for Returns Unknown Stormwater, Critical Areas, Building
Client Satisfaction Negative Positive
What do the customers have to say?
• “Really? Are you kidding?”
• I don’t have financing yet.” (Developer)
• My guys aren’t ready to be mobilized.”
• “I can put my guys to work?”
• Thank you. My customers doubted it would be this quick.”
• “That wasn’t hard.”
• “I’ll be there within the hour.”
• “Unbelievable.”
• “I really believe those people care.”
• Kitsap County: reduced from 21 to 6 days on single family home permits
• Clark County: target to reduce single family home permits from 23 to 12 days
• Island County: target to reduce shoreline exemptions from 90 days to 45 days
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Using Lean to Streamline County Permits
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Contacts
Deborah StephensSenior Performance Auditor
(360) [email protected]
Larisa BensonDirector of Performance Audit
(360) [email protected]
Website: www.sao.wa.govTwitter: www.twitter.com/WAStateAuditor
Troy KellyState Auditor
(360) [email protected]
