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NV Senate Bill 349

Legislation

State: Nevada
Signed: June 09, 2023

Effective: July 01, 2023
Chapter: 242

Summary
Senate Bill 349 amends Nevada’s statutes for document preparation services, a non-legal service of providing legal documents to individuals.
Affects
Adds as yet uncodified sections to and amends Sections 240A.150, 240A.240, 240A.260, 240A.270, and 482.160 of the Nevada Revised Statutes.
Changes

Advertisements

  1. Provides a limited exception from that general prohibition by authorizing a document preparation service to use the term “Department of Motor Vehicles” or “DMV” in an advertisement if: (1) the term is followed by the term “services,” “registration services” or other similar language; and (2) the advertisement includes a clear and conspicuous statement that the document preparation service is a third-party business not affiliated with the Department.
  2. Requires any advertisement for services of a document preparation service disseminated or caused to be disseminated by a registrant must include a prescribed notice, as specified, in the same language as the rest of the advertisement and in a conspicuous size.
  3. Specifies the prescribed notice that must be included in an advertisement for document preparation services as follows: “I AM NOT AN ATTORNEY IN THE STATE OF NEVADA. I AM NOT LICENSED TO GIVE LEGAL ADVICE OR LEGAL REPRESENTATION. I MAY NOT ACCEPT FEES FOR GIVING LEGAL ADVICE OR LEGAL REPRESENTATION.”
  4. Provides that if the Secretary of State finds a registrant in violation of the advertising requirements stated above, the Secretary may: (a) Suspend the registration of the registrant for not less than 1 year. (b) Revoke the registration of the registrant for a third or subsequent offense. (c) Assess a penalty of not more than $1,000 for each violation for a registrant who does not include the prescribed notice in an advertisement for services.
  5. Provides that unless a greater penalty is provided pursuant to NRS 240A.290, a registrant who is found guilty in a criminal prosecution of violating the advertising provisions stated above shall be punished by a fine of not less than $100 or more than $5,000 for each violation.

Status Updates

  1. Requires a document preparation service to submit to the Secretary of State a request for an amended registration of a form provided by the Secretary when the registrant changes his or her mailing address, county of residence, or place of business or employment within 30 days after making the change and providing the new information.
  2. Requires a document preparation service registrant to submit to the Secretary of State a request for an amended registration on a form provided by the Secretary if the registrant changes his or her name and the registrant intends to use that new name in performing document preparation services within 30 days of the change, including the new name and address of the registrant.
  3. Authorizes the Secretary of State to suspend a document preparation service registration of a registrant who fails to notify the Secretary of a change of mailing address, county of resident or place of business or employment.

Unlawful Acts, Complaints, and Penalties

  1. Provides it is unlawful for a person to: (a) represent himself or herself as a document preparation service if the person has not registered as a document preparation service, or if his or her registration is expired, revoked or suspended or is otherwise not in good standing or (b) submit an application for registration as a document preparation service that contains a substantial and material misstatement or omission of fact.
  2. Provides that the civil penalty for a person representing himself or herself as a document preparation service if the person has not registered as a document preparation service, or if his or her registration is expired, revoked or suspended or is otherwise not in good standing  is not more than $1,000 for each violation, plus reasonable investigative fees and costs.
  3. Authorizes the Secretary of State to request to Attorney General to bring an action to enjoin any violation of a person representing himself or herself as a document preparation service if the person has not registered as a document preparation service, or if his or her registration is expired, revoked or suspended or is otherwise not in good standing, and recover any penalties, attorney’s fees, and costs.
  4. Sets forth penalties, as specified, if a document preparation service registrant (a) retains any fees or costs for services not performed or costs not incurred after the date of last service performed for a client; (b) makes certain promises, or statements; (c) uses certain terms in an advertisement or written description of the registrant or services provided by the registrant; (d) represents himself or herself as a paralegal or legal assistant; (e) with certain exceptions, negotiates concerning the rights or responsibilities of a client; (f) with certain exceptions, appears on behalf of a client in a court proceeding or other formal adjudicative proceeding; (f) with certain exceptions, provides certain advice, explanations, opinions or recommendations to a client; or (g) seeks or obtains from a client a waiver of any provision of law relating to document preparation services.
  5. Provides that the Secretary of State may suspend a registrant for not less than 1 year, revoke the registration of the registrant for a third or subsequent offense, and assess a penalty of not more than $1,000 per violation for violating the provisions of NRS 240A.240.1 as noted above in #4.
  6. Authorizes any person aware of a violation by a document preparation service or person applying for registration as a document preparation service to file a complaint with the Secretary of State.
  7. Provides that if the Secretary of State receives a complaint against a registrant, the Secretary must notify the registrant by certified mail, include in the notification (a) A description of each allegation contained in the complaint; (b) A statement of each statutory provision which the document preparation service or other person is alleged to have violated; (c) An explanation of any disciplinary action that may be taken against the document preparation service or other person if the Secretary of State determines that the alleged violation occurred; (d) A statement that the document preparation service or other person must respond to the notice not later than 15 days after the notice is received; and (e) Instructions on the manner in which the document preparation service or other person may respond to the notice.
  8. Provides that the notice sent by the Secretary of State to a registrant who is the subject of a complaint is deemed to have been received 3 days after the notice is mailed.

Suspension or Revocation of Registration

  1. Authorizes the Secretary of State to suspend or revoke the registration of a document preparation service pending a hearing if the Secretary of State believes it is in the public interest or is necessary to protect the public.
  2. Provides that if after an investigation into a violation of NRS 240A related to document preparation services the Secretary may revoke or suspend the registration of a registrant and impose a civil penalty of $1,000 after a hearing.
  3. Provides that if a registrant within a reasonable period of time fails to provide the Secretary of State with any information requested by the Secretary of State during an investigation of an alleged violation by the registrant, the Secretary may suspend, revoke or refuse to renew the registration of the registrant.
Analysis

In Nevada, a document preparation service provides consumers with legal documents for their legal needs, but they do it without giving legal advice. Registration of providers is required, and they are regulated by the Secretary of State. Notaries may consider offering document preparation services, since it fits in well with the provision of notarial services. Senate Bill 349 updates Chapter 240A of the Nevada Revised Statutes with new requirements and penalties. It also amends NRS 482.160 to allow document preparation services to use the phrase Department of Motor Vehicles or DMV in advertisements, under certain conditions, as specified.

Read Senate Bill 349.

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