March 5, 2013 - Today, the Office of Regulatory Reinvention (ORR) publicly released its report to Governor Rick Snyder containing 27 recommendations for improving Michigan's inspections and permitting processes while continuing to protect Michigan's citizens. Gov. Snyder has reviewed the ORR recommendations and believes the ORR report is an important step in the process of reinventing Michigan government.
"The ORR identified several ways to improve Michigan's inspections and permitting processes to encourage business growth and job creation," said Steve Arwood, Chief Regulatory Officer and Department of Licensing and Regulatory Affairs Director. "The ORR's recommendations cover a wide range of topic areas, including improving customer service and predictability. We are confident that these recommendations will lead to job creation while maintaining necessary public health and safety benefits."
The ORR formed the recommendations after a comprehensive review process, including convening an Advisory Rules Committee (ARC) of 19 stakeholders that included representatives from developers, banks, local governments, trade unions, environmental groups, state departments, and other important stakeholders. The ARC was chaired by Steven H. Hilfinger, the former Chief Regulatory Officer who now serves as the Michigan Economic Development Corporation's Executive Vice President and COO.
"The ARC process resulted in a well thought out report that makes significant recommendations to improve inspections and permitting processes across Michigan," said Hilfinger. "These commonsense recommendations to modernize our processes will help Michigan spur new development, leading to more Michigan jobs."
The ARC identified several characteristics that Michigan's inspections and permitting processes should have moving forward. Reform should maintain health and safety benefits of the system, while making it more lean and efficient, development-friendly, focused on customer service and predictable, among other things
"These recommendations will give the Bureau of Construction Codes greater flexibility to deliver better customer service and enhance safety and health protections," said Irvin Poke, director of the Bureau of Construction Codes.
"There is a need to make the plan review process simpler, shorter and more predictable for businesses seeking permits," said Jackie Hoist, Registered Architect and Certified Building Inspector for THA Architects Engineers. "I believe these recommendations will help achieve that. By creating an easier process, we will be able to complete more projects in Michigan."
The ORR's recommendations generally fall into one of six categories:
1) Division of Authority
Examples: Recommendation #1. Creation of a state wide fire code, instead of the current patchwork of regulations.
Recommendation #2. Hear all construction code appeals at the state level.
2) People
Examples: Recommendation #6: Create a development-friendly culture throughout the State of Michigan - adopt the mantra of "Educate First, Enforce Second"
Recommendation #11: Remove the requirement of government employment before qualifying for registration under the Building Officials and Inspectors Registration Act (Act 54).
3) Process
Examples: Recommendation #12: Allow for electronic submittals of plans.
Recommendation #16-17: Create a single permit for water heater replacement and HVAC installation.
4) Consistency
Example: Recommendation #18: Create a single streamlined application for industrial and health care development projects.
5) Transparency
Example: Recommendation #22: Provide for pre-project meetings (including web-based meetings).
Recommendation #23: Pursue Internet applications to allow customer to see the status of plan reviews/permits online in real time.
6) Performance Management
Example: Recommendation #25: Utilize customer feedback surveys.
Recommendation #26: Create and use baseline criteria for reviewing building officials' performance. Allow developers to provide feedback on their experience relative to these measures.
Public health and safety interests were represented on the committee and shaped many of the recommendations.
"Some of these recommendations are long overdue such as the creation of a statewide fire code," said Bill Benoit, building director and fire chief for Oakland Township. "This is the type of recommendation that is a win-win - public safety is enhanced by having a uniform code, while businesses no longer have to spend time and money trying to figure out the hundreds of different codes that exist across communities in Michigan."
The recommendations will help Michigan achieve a system that has the characteristics that the ARC identified as drivers of successful inspections and permitting systems - enhancing health and safety benefits; development friendly; focused on customer service; predictability; and efficiency.
"Predictable turnaround times prevent the stalling of projects. This helps promote project efficiency and facilitates economic investment and development," said Peter Draaisma, Senior Vice President, Huntington Bank. "These recommendations will make our system more predictable and will spur economic growth."
To view the complete recommendations, visit: http://www.michigan.gov/documents/lara/Inspections_and_Permitting_Recommendations_-_March_4_413233_7.pdf
For more information about other ORR recommendations, visit here.
For more information about the ORR, please visit www.michigan.gov/orr
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