Growing Pains in the Grand Canyon State

The Corporations Division of the Arizona Corporation Commission is having a hard time keeping up with the state's rapid commercial growth.

(PRWEB) January 2, 2005 -- Arizonas population has exploded over the past several decades. Since 1990 it has increased by over half. The pace of new business formation has followed suit. Over the past decade, the number of annual corporation and LLC formations has increased two and a half times, from 18,238 to 47,775, while the total number of corporate filings handled by the Arizona Corporation Commission (ACC) has soared from 24,287 to 61,238. This fiscal year filings are running 14% ahead of year-ago.

Such rapid growth can strain infrastructure and stretch organizations almost to their breaking point. No exception, the ACC finds itself struggling to keep pace with Arizonas dramatic commercial growth. This surge has caused some slowdown in turnaround times for Corporate Document filings and retrievals. For example, even expedited filings can now take up to 20 business days, and routine service is running as long as 10 months.

In response, ACC Management is expected to request legislators to increase Corporation Division funding, especially for much-needed additions to staff. But incremental funding is not a given, even though the division generates considerably more in annual revenue than its allotted for operations each year. That surplus has been allocated to other worthy programs across the state. And like so many other state legislatures, Arizonas has tightened its fiscal belt over the past few years, so legislators are likely to be highly discriminating in their review of requests for incremental funding.

Meanwhile, Corporation Division Management is taking prudent steps to shorten turn times by streamlining processes. For example, theyve begun implementing a new Initial Processing System (IPS) that utilizes bar coding and scanning technology to log and track submitted filings. Following a test on LLC filings, they hope to add other types of filings into IPS until all documents are processed through the system. The hope is that, at the very least, the IPS will eliminate time wasted on tracking down documents, making it easier for Division personnel to respond to status calls. The upside is that all labor hours saved can be redirected to more productive tasks.

Meanwhile, service companies and their clients are making the best of a trying situation. Shanna Brewer, a Corporate Specialist with Phoenix-based AccuSearch, Inc. says Its a challenging time for all of us involved in the service industry in Arizona. We really sympathize with Corp Division employees who are trying their best to keep up with increasing volumes. They hate to disappoint clients as much as we do, and thats the tough part -- trying to explain to customers that its going to take longer to file certain documents than theyre accustomed to."

AccuSearchs Yvonne Watkins adds, Its frustrating to feel caught in the middle. We do what we can though, by staying on top of things and keeping clients well informed. We hold out hope that more resources are on the way. That would certainly make all of our jobs easier and clients happier."

Toward that end, the ACCs Corporations Divisions new Executive Director, Dave Raber, is planning Customer Feedback Meetings so he can hear firsthand clients concerns and suggestions about how his division can do a better job serving its customers. A productive dialogue is already underway between Raber and managers of the states leading corporate service companies. Sharing a mutual interest to bring ACC turnaround times back in line with historic norms, service company managers have expressed a willingness to help spread the word about the ACCs need for increased resources so its better positioned to meet ever-rising demand for its services. It doesnt appear as though that trend will reverse anytime soon, as experts predict that Arizonas rapid growth is likely to continue well into the future.

AccuSearch, Inc. provides Arizona public record and corporate document filing and retrieval services (800)462-7019 www.AccuSearch.biz

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