September 19, 2003

On August 28, 2003, the first meeting of the Public Trustee’s Association E-Business Committee was held at the Douglas County Events Center. Jack Arrowsmith, Douglas County Public Trustee and Chairman of the E-Recording Committee made some opening remarks. He stated that we all know that E-recording is coming, and, that the Boulder and Douglas County Clerks are to making it a reality. Everyone present introduced himself or herself and gave a reason why they were in attendance. All were interested in learning more about E-Recording. Storage problems and volume concerns were expressed. A way of expediting the release and foreclosure processes and learning about the legal aspects related to E-Recording were some of the other reasons given.

In attendance were the members of the E-Recording Committee as follows:
Jack Arrowsmith, Douglas County Public Trustee, Chairman
Angela Dazlich, Larimer County Public Trustee
Roxy Huber, City of Broomfield Public Trustee
Alynne Huffman, Gilpin County Treasurer and Public Trustee
Michelle Miller, Park County Treasurer and Public Trustee
Jim Wills, Boulder County, Chief Deputy Public Trustee

Others in attendance were:
Marilyn Bullard, Douglas County, Deputy Public Trustee
Larry Castle, Castle, Meinhold & Stawiarski
Rhoda Field, Douglas County, Foreclosure Specialist
Chris Fierro, Douglas County, IT (Information Technology)
Michelle Gombas, Douglas County, Attorney
Barbara Krohta, Douglas County, IT (Information Technology)
Sheri Muehfelt, Douglas County, Clerk and Recorder, Recording Manager
Carole Murray, Douglas County Clerk and Recorder
Mohammed Shaikh, E-Filing.Com
Marta Wilbert, Castle, Meinhold & Stawiarski

After all the introductions were over, Carole Murray and Sheri Muehfelt from the Douglas County Clerk and Recorder’s Office gave a very informative and enlightening power point presentation called "The State of eRecording in Colorado". Because this will be her last term in office as the Douglas County Clerk and Recorder, Carole is excited to get the e-filing process up and running in Douglas County. She became interested in this process when she was a newly elected Clerk and Recorder and has been working on getting e-filing into the State of Colorado since her first few weeks in office. She decided that she would re-invent the process before someone else did! She has been working with the Clerk and Recorder’s Association and the Colorado State Legislatures, and there have been many changes made in the legislation because of this pioneering effort by the Clerk and Recorder’s Association. There are still some changes that need to take place before the Public Trustee’s Offices can submit e-filings. Notarization is the major change that needs to be addressed. The Secretary of State, Donetta Davidson, is drafting rules on the notarization related to e-filing at this time.

There are 3 levels of e-filing (or e-recording):

Level 1 – Electronic image of a paper document is transmitted and stored electronically, (e.g. scanning, faxing) (Uses image of wet signature)

Level 2 – In addition to the scanned image of a Level 1 document, a Level 2 document includes XML data tags that are "wrapped" around the original document. (also uses image of wet signature)

Level 3 - An electronic document is created by combining a format called HTML with information (embedded SML data tags), and is encrypted and signed with a digital signature (using PKI technology) This is a truly electronic "intelligent" enforceable document, not an image of a paper document.

There was a lot of discussion, and questions asked, about this whole process and how the expense of new technology could be managed. Different ideas were suggested. Standardization of the documents is an important factor in the e-recording process. The point was brought up that this process will not replace the Public Trustee’s Office, but would moderate the size of staffs and would require employees with additional skills. The Public Trustee’s will all have the choice to implement e-business, or not. It will not be forced onto anyone! No new legislation we be needed to accept electronic releases submitted without the note.

Larry Castle shared his hope that the law firm could eventually electronically submit all foreclosure documents to the Public Trustees and we in turn submit them to the Clerk and Recorder for electronic recording and the Clerk and Recorder could submit them back to the Public Trustee or to the law firm electronically. Their firm is presently filing court documents electronically to the courts. Marta Wilbert, also from the Castle, Meinhold & Stawiarski firm, shared how un-uniform all the documents and requirements for the different courts are and stressed how much easier it would be if there were standardization in all the courts.

Thanks were expressed to Carole Murray and Sheri Muehlfelt for their presentation on e-recording. They shared with us that the Douglas County Recording Department will be up and running with e-filings by mid September, 2003.

After lunch, there was another presentation made by Mohammed Shaikh from E-Filing.com. He shared how this company came to be and his part in it. He pointed out that Mass filings are what drive people or companies to filing electronically. The first e-filing was done on January 3, 2000, in Savannah, Georgia. Up until October 1, 2000, there were only 3 e-filing’s done. He gave a lot of detailed information about the e-filing process and his company.

After dismissing the other attendees, the E-Business Committee members met for a brief meeting.

There was discussion about recommendations to the Public Trustee’s Association. A report will be made at the Fort Collins 2003 Seminar. Angela pointed out that this committee should respect other’s fears about e-filing and address them. All agreed that this was necessary.

It was brought up that Homeland Security is coming to us! Also, fraud is a reality and this problem is growing. There are unique problems in the electronic technology. Jack gave every one the name of the IT person in Douglas County that is in charge of security issues, Gene Barlow. Any of the Public Trustee’s can contact him individually. (Call Jack Arrowsmith if you want Gene’s contact information). Jack also said that Michelle Gombas from the attorney’s office, Douglas County, is willing to answer any legal questions. Contact Jack if you have any questions for her.

The next meeting of the E-Business Committee will be held on Friday, October 3, 2003 in Broomfield. Roxy will host and provide lunch. Jack will call Gene Barlow and ask him to come to this meeting.

There was discussion about the hurdles that need to be overcome. All agreed that most will be concerning the smaller counties. This will be an evolutionary process that will not be forced on anyone. Each county will have their own timetable. This committee will try to find out what each county needs (regardless of size) to make this happen.

The decision was made to meet as often as was needed to accomplish the committee’s goals. New developments will be kept track via e-mail. The Committee hopes to meet at some point at Seminar in Fort Collins if time allows.

Committee suggestions:

What kinds of outside entities do we want on this committee? Title Company? Attorney? Technology person?

The committee will have answers to these questions at the next meeting.

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