Background

1. Regulatory Reform: Improving Permit Timeliness Joint Legislative Audit and Review CommitteeJanuary 7, 2014Chuck Pfeil, Director of Performance AuditDeborah Stephens, Senior Performance Auditor

2. Background • Business Feedback The Audit: Improving Permit Timeliness Recommendations

3. A bit of history • 2011: We published our Inventory of Regulations • 26 state regulatory agencies administer business permits, licenses and/or inspections • 2012: We published our first regulatory reform audit • Communicating business information online • Streamlining business rules • 2013: We published this audit on permit timeliness • 14 of the 26 agencies issue 225 business permits

4. Why we did this audit • Laws and executive orders tell agencies to: • Report permit processing times to businesses • Streamline processes as much as possible • Businesses need predictable regulatory timeframes to make sound business investment choices • Efficient processes save businesses and government money

5. Background • Business Feedback The Audit: Improving Permit Timeliness Recommendations

6. Business survey • Individual permit scores varied—we shared results and comments with agencies We surveyed 4,200business representatives - 70percent response rates Overall, satisfaction with permitting was good - 90percent positive Highest scores - friendly staff, clear decisions, questions answered Lowest score - 17percent disagreed or strongly disagreed—in the area of knowing permit processing times

7. Business focus groups • Other important aspects of permitting that businesses revealed: • Transparency • Consistency • Customer service • We conducted focus groups in: • Port Angeles • Seattle • Spokane • Tri Cities • Predictabilitywas the most talked about issue

8. Background • Business Feedback The Audit: Improving Permit Timeliness Recommendations

9. Audit objectives Our audit questions Do regulatory agencies and their business customers know how long it takes agencies to make permit decisions? Are there opportunities to reduce the time it takes regulatory agencies to make permit decisions?

10. Do agencies and businesses know permit times? What we did • We surveyed permitting agencies to find out if: • They track permit times • They have target timelines • We looked on agency websites and application forms for processing time information • We compared availability of processing time information to what we found in our first audit

11. Do agencies know permit times? • Agencies do not track or have targets for a number of reasons: • Permitting is not a priority business • No system to track • Too many external factors Business Permits 40% not tracked 60% tracked What we found • Agencies track processing times for 60percent of permits • Tracking methods are inconsistent • Agencies have target timelines for 57percent of permits

12. Do businesses know permit times? Improvement, but more to do! 2012: 15% of permits 2013: 40% of permits • In summary: Agencies and business customers don’t always know how long permit decisions take What we found Agencies provide processing time information for 40percent of permits Agencies have improved—only 15percent had information available in 2012

13. Opportunities to reduce permitting times? 1 2 3 4 What we did • We selected permits to evaluate • 8permits from 7agencies • Cross-section of industries, agencies, and processing times • Looked at best practices in 4areas of permitting • Pre-application • Application and intake • Review and notification • Performance management • Developed a tool agencies can use to evaluate all permit and license processes

14. Opportunities in the pre-application phase What we found Only a few permits had process maps or detailed information about the process online. Many permits list contact information online for help, but none told businesses how long they would need to wait for a response. • Agencies can improve processes by providing better information and assistance before the application is submitted

15. In the application/intake, review/notification phases What we found • Agencies are doing a good job with application forms, screening for completeness, and review and notification of applications

16. In the performance management phase What we found Only a few permits had performance measures and targets for any phase of the permit process. Only a few permits had formal evidence of using performance management to monitor and improve permitting • Agencies can improve processes by collecting and analyzing data to identify and resolve bottlenecks or other delays

17. Summary of opportunities to reduce permitting times • In summary: Agencies have simple, low-cost opportunities to improve permitting and potentially reduce permit times. What we found

18. Promising practices We saw many promising practices, such as: • Examples of complete applications • Free pre-application assistance • Online submission • Checklists for applicants • Pre-populated renewal forms • Online status checks • Automatic status updates • Customer satisfaction surveys

19. Background • Business Feedback The Audit: Improving Permit Timeliness Recommendations

20. Recommendations • We recommend agencies: • Measure permit timeliness • Provide that information to businesses online • Report progress to the Legislature • Publish targets and performance measures • Provide more up-front assistance to businesses • We recommend the Governor’s Office: • Compile permitting best practices and publish a report

21. Contacts • Troy Kelley • State Auditor • (360) 902-0360 • Troy.Kelley@sao.wa.gov • Chuck Pfeil • Director of Performance Audit • (360) 480-1103 • Chuck.Pfeil@sao.wa.gov • Deborah Stephens • Senior Performance Auditor • (360) 725-9727 • Deborah.Stephens@sao.wa.gov Website:www.sao.wa.gov