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Law

NV Assembly Bill 280

Notary Law Update: NV Assembly Bill 280

State: Nevada

Summary:

Assembly Bill 280 modifies Nevada's document preparation service requirements, including lowering the amount of the cash or surety bond required to be a document preparation service, allowing business entities to file a bond in a sliding scale based on the number of employees and exempting enrolled agents from the definition of document preparation service.

Signed:  May 25, 2019

Effective:  May 25, 2019

Chapter: 156

Affects:

Adds Sections 240A.1.5, 240A.2. 240A.3, and 240A.3.5 to and amends Sections 240A.3.7, 240A.030, 240A.100, 240A.110, 240A.120, 240A.130, 240A.240, and 240A.270 of the Nevada Revised Statutes.

Changes:
  1. Defines "business entity" as a corporation, association, partnership, limited-liability company, limited-liability partnership or other entity organized and existing under Nevada law. 
  2. Allows a business entity to file a cash or surety bond to cover multiple employees of the entity who perform document preparation services.
  3. Provides the differing amount of the bond based on a sliding scale of the numbers of employees covered by the bond as follows: (a) 1 registrant, $25,000' (b) 2 to 25 registrants, $50,000; (c) 26 to 75 registrants, $75,000; (d) 76 to 125 registrants, $100,000; (e) 126 to 200 registrants, $150,000; and (f) more than 200 registrants, $200,000.
  4. Lowers the amount of the bond required for an individual registrant from $50,000 to $25,000.
  5. Revises the definition of “document preparation service” to exempt enrolled agents authorized to practice before the Internal Revenue Service.
  6. Clarifies that "document preparation service" includes a tax return preparer, including, without limitation, a tax return preparer who holds a current Annual Filing Season Program Record of Completion issued by the Internal Revenue Service.
  7. Requires the Secretary of State to deny the registration of an applicant as a document preparation service if the applicant has had his or her appointment or registration as a Notary suspended or revoked for cause in Nevada or another state.
  8. Authorizes the Secretary of State to suspend the registration of a registrant who is also appointed as a Notary and whose appointment as a Notary has been suspended and provides rules for the reinstatement of registration as a document preparation service if the registration has not expired during the suspension upon a showing that the registrant's suspension as a Notary Public has been lifted. 
  9. Clarifies that certain prohibitions that apply to a document preparation service do not apply to a registrant to the extent that it would violate federal law.
  10. Provides that a registrant who is also an appointed Nevada Notary and is in good standing with the Secretary of State may use the term “Notary Public” in such advertisements or written descriptions.
  11. Requires an applicant for registration as a document preparation service to be a natural person.
  12. Provides rules governing surety and cash bonds.
  13. Provides rules for the filing of claims for damages against surety and cash bonds in a court of competent jurisdiction and for notification of the Secretary of State in the event a claim is filed. 
Analysis:

In 2014, Nevada created a new profession called "document preparation service." Essentially, it allows an individual to assist the public in completing legal documents without providing legal advice. AB 280 modifies Chapter 240A of the Nevada Revised Statutes related to document preparation services. Most of the bill deals with the amount of and provisions related to the cash or surety bond a registrant as a document preparation service must file. AB 280 lowers the amount of the bond for individual registrants and allows business entities, as defined in the bill, to file a cash or surety bond according to a sliding scale based on the number of employees who are registrants as a document preparation service provider. The bill also exempts enrolled agents authorized to practice before the Internal Revenue Service from requiring to register as a document preparation service, but clarifies that a tax return preparer, including, without limitation, a tax return preparer who holds a current Annual Filing Season Program Record of Completion issued by the Internal Revenue Service, is required to register. The bill authorizes the Secretary of State to suspend the registration of a registrant who is appointed as a Notary Public if the Notary commission is suspended. The bill also allows a Notary in good standing may use the term "Notary Public" in advertisements as a document preparation service.

Read the bill text.

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