Mike Hardin

Business and Licensing Division Director

May 20, 2014

How Colorado Embraces Change

THEN AND NOW

TIMELINE

2004First External Online System Offered

1980sCombined UCC andBusiness Division

2010Combined Business and Licensing Division

2001First Online Certificate of Good StandingFirst Periodic Report Online

2002Legislation mandating SOS enable online filing of business entity documents. 2002

UCC First offered Online

2010All Business Filings Online

2011Post Card NotificationEliminated

2012UCC Mandatory Online

2009Mandatory Statement of Change/Corrections for Business Entities

2007Trademarks

2004SOS Authorized to mandate any filing online

2006Trade Names

EVOLUTION

Paper Filing

Before After

Online Filing

Call Center Service Center

Mail and Fax Phone, Web, and Email

Checks and Cash Credit Cards and Prepaid Accounts

Instant Processing1 Week to 4 Months Processing

Monday Thru Friday 8am – 5pm 24/7

Data Entry of Forms Customer Populates Forms

EVOLUTION CONTINUED

Microfiche

Before After

Web-based Imaging with Scanning

Mail Additional Documents File Attachments

Expedited Fees No Expedited Fees

Manual Searches Instant Searches

Online CertificationManual Certifications

Manual IRS Filing Manual IRS Filing

Volume Drives Resources Volume Doesn’t Impact Resources

COMMUNICATION

Letters 1970s

Postcards 2001

Email 2013

• Website Messaging• FAQs• GovDelivery• Embedded Video – Vimeo• Email Notifications• Service Center Phones• Service Center Emails• E-learning Modules• Outreach Activities• Social Media

LEGISLATION TIPS

• Aggressively Track Legislation That Affects Your Office• Use Stakeholder Groups for Support and Ideas• Use of Office Liaison• Host Focused Taskforce Sessions• Testify at Committee Hearings• Policy Group (Draft Leg, White Paper)• Post Legislation Rule Making• Include Rulemaking Authority• Fiscal Notes• Delay Effective Dates

STAFFING

1997

1999

2001

2003

2005

2007

2009

2011

2013

0

10

20

30

40

50

60

70

80

Business Division Staffing

TempsFTE

Num

ber o

f Per

sonn

el

• Multiple Reorganizations• Normal Attrition• Cross-training• Hiring New Skillsets

199719981999200020012002200320042005200620072008200920102011201220130

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

Business Filing VolumesBusiness Documents UCC Filings

• Hiring Practices• Career Progression• Employee Engagement• Training and Education

FUNDING AND RESOURCES

• Colorado Secretary of State is fully cash funded.• Ability to run the office like a business matching revenue and expenses.• IT Division – Late 1980s, leveraged charitable gaming legislation.• Authority to maintain a 16.5% cash balance.• Still required to request appropriations to support office activity.• Advantages:

• Flexibility • In-house IT solutions• Not as Vulnerable to Economic Swings• More Control

ADOPTION TIPS

• Computers Available at Office• Fee Incentives• Fee Holidays• Build Stakeholder Coalitions• Use Taskforces• CLE Presentations• Stakeholder Testing• Service Center Assistance• Roadshow• FAQs• Filing Tips• Publicize• Secure Site• Track Progress• Use of Hybrid Systems• Usability Testing

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

20

30

40

50

60

70

80

90

100

4449

62 64 66 67 67 66

73

6670 72 69 71 71 70

89 86 88 88 88

UCC E-filing Adoption Rate

Thank you!