Tuesday, December 16, 2014YOUNGSTOWN, Ohio -- Last year Shepherd of the Valley Inc. faced a dilemma: it was trying to reduce the number of beds by 20 at one of its skilled-nursing centers at the request of the state of Ohio, but the state also required Shepherd to submit a certificate of need application.
The process initially proved cumbersome, slow and expensive, Don Kacmar, Shepherd executive director who is retiring Dec. 31, recalled Monday. As the application process dragged on and those empty beds remained on the books, it was costing Shepherd more in fees paid to the state – about $200 a day.
It would have been considerably more, Kacmar said, had it not been for the Youngstown/Warren Regional Chamber interceding and introducing him to the Common Sense Initiative, or CSI, a program headed by Lt. Gov. Mary Taylor that was established by Gov. John Kasich to help Ohio businesses resolve regulations that proved excessive or have outlived their original intent.
Taylor was in the Mahoning Valley yesterday on a media tour to brief reporters and editors on the successes the initiative has achieved.
"We worked with a couple of people there, and they were an advocate for us," Kacmar said. Within two weeks of Kacmar's first conversation with chamber President and CEO Tom Humphries, the issue was resolved.
In the end, moving through the four-year-old state program saved Shepherd of the Valley $15,000, Kacmar estimated. "I can't speak enough on how quickly they did things," he said.
The Kasich administration created the Common Sense Initiative in 2011 to help businesses navigate the cumbersome red tape that often accompanies compliance with state regulations. The office works with agencies to review rules and their impact, and is designed to collect data from all stakeholders involved. CSI uses this information to make recommendations that officials say improve the compliance and eases the regulatory burden on businesses.
"We put a formal review process in place that officially kicked off in 2012," said Taylor. "Any rule that impacts business comes through our Common Sense Initiative. It could be any state agency."
Collecting facts, opinions and data from all stakeholders is critical to developing a more business-friendly strategy throughout the state, Taylor continued. "We've asked our state agencies to reach out to stakeholders while they're developing the rules. We've also asked them to write the rules in plain language so people can understand them and complete a business impact analysis," she said.
The program has achieved success either by amending or rescinding rules through the Legislature, while finding other ways to work within existing laws to expedite compliances, Taylor said.
In the case of Shepherd of the Valley, for example, the company was bound by language in the law to submit a certificate of need to the state, even if it was removing beds, said Mark Hamlin, director of regulatory policy in Taylor's office.
"While it didn't make sense, the law was pretty clear," Hamlin noted. So, Taylor's office worked with both Shepherd of the Valley and the Ohio Department of Health to streamline the process. "There were paperwork and fees that they were able to avoid by virtue of [the Department of] Health being able to restructure some things," he said. CSI then went to the Ohio Legislature and submitted language that would amend the law. "That took a few months, but that law has now changed," Hamlin related.
Other companies, such as Patriot Water Treatment in Warren, contacted CSI regarding its problems with the Ohio Department of Natural Resources, the Regional Chamber's Humphries noted. The issue involved the agency’s decision not to renew the company's permit to transport its treated water from drilling sites to Warren's wastewater treatment plant, where a portion would be cleaned and then discharged into the Mahoning River.
"It was a nightmare because of federal regulations," Humphries noted. "It was really, really complicated."
While Patriot failed to have its permit renewed, Humphries said the process moved faster because of CSI. "It didn’t turn out the way the gentleman wanted, but he knew the outcome sooner. The good part is that there was access to get straight answers."
Business executives across the state feel more secure when they see government acting on their behalf, Humphries said. "I feel the businessperson is comfortable that they're [CSI] addressing it," he said. Too often, requests become mired in a swarm of other issues between different agencies and personnel, he said. "With CSI, all of a sudden, it's one point of contact, they're getting feedback."
Taylor said a major reason that her office can move the process along much faster is because departments understand that these initiatives are driven directly by the governor, and his authority helps spur others into action. "You have to have the highest level of authority backing what you're trying to accomplish, and knowing that we're serious," Taylor said.
One aspect of the CSI mandate is taking a fresh look at regulations that require an update or some measure of reform, Taylor noted.
She points to the aggregates industry in Ohio, which for 10 years had unsuccessfully lobbied the Ohio Environmental Protection Agency for a general permit process that would make it easier on new and existing aggregate companies.
"It was frustrating on all accounts," she recalled. "Our group got involved. We brought everybody to the table. And after 10 years of periods of discussions and no conversations at all, EPA now allows that general permit for the aggregates industry."
Another example Taylor cited is CSI's ability to resolve an impasse between the Ohio Department of Commerce and the building industry. Commerce was writing new rules related to residential building codes, which could affect homebuilders, developers and homeowners.
"They wouldn't speak to one another," she said. "We brought the stakeholders to the table and they came to an agreement. Because of our involvement and their interaction, they were able to save homeowners on average $2,000 [per house] under the residential building code that was passed versus that which was originally proposed."
Over the last two years, CSI has reviewed 5,300 rules that affect business in some degree, Taylor reported. Half have either been rescinded or amended, she said. About 15,000 rules associated with various agencies are reviewed every five years on a rolling basis.
Ultimately, the objective of CSI is to craft regulations and policies that build consensus, compromise and deliver what is best for the consumer.
"That really is what we hope to accomplish," Taylor said.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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