(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT A.B. 72
- *AB72_R1*
ASSEMBLY BILL NO. 72–COMMITTEE
ON GOVERNMENT AFFAIRS
(ON BEHALF OF THE SECRETARY OF STATE)
PREFILED NOVEMBER 20, 2024
____________
Referred to Committee on Government Affairs
SUMMARY—Revises provisions relating to notaries public and
document preparation services. (BDR 19-485)
FISCAL NOTE: Effect on Local Government: Increases or Newly
Provides for Term of Imprisonment in County or City
Jail or Detention Facility.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to public affairs; authorizing the Secretary of State
to adopt a code of professional responsibility for notaries
public; authorizing a notarial officer to refuse to perform
a notarial act under certain circumstances; revising the
procedure for filing cash bonds or surety bonds covering
document preparation services; prohibiting a registrant to
engage in the business of a document preparation service
from engaging in such business for or under an entity that
is not covered by such a bond; providing that certain
information and documents obtained during an
investigation of a document preparation service is
confidential; providing penalties; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the Secretary of State to adopt regulations: (1) 1
prescribing the procedure for the appointment and mandatory training of a notary 2
public; and (2) establishing procedures for the notarization of digital and electronic 3
signatures. (NRS 240.017) Section 2 of this bill additionally authorizes the 4
Secretary of State to adopt regulations establishing a code of professional 5
responsibility for notaries public. Section 4 of this bill authorizes the Secretary of 6
State to impose certain sanctions against a notary public who violates any 7
regulation adopted pursuant to the provisions of existing law governing notaries 8
– 2 –
- *AB72_R1*
public, including, without limitation, any code of professional responsibility 9
adopted pursuant to section 2. In addition, under existing law, a person who 10
willfully violates such a code would be guilty of a category D felony if irreparable 11
harm results. (NRS 240.175) 12
Existing law prohibits certain acts by a notary public. (NRS 240.075) Section 3 13
of this bill authorizes a notarial officer to refuse to perform a notarial act if the 14
notary officer is not satisfied that: (1) the person executing the document is 15
competent or has capacity to execute the document; or (2) the persons signature is 16
not knowingly and voluntarily made. Section 3 further authorizes a notarial officer 17
to refuse to perform a notarial act under other circumstances where such refusal is 18
not prohibited. 19
Existing law authorizes an electronic notary public to perform electronic 20
notarial acts using audio-video communication if the electronic notary public is 21
physically present in the State. (NRS 240.198, 240.1993) Section 5 of this bill 22
clarifies that an electronic notary public is prohibited from performing an electronic 23
notarial act unless he or she is present in the State. Under existing law, the 24
Secretary of State would be authorized to impose sanctions against a notary public 25
who violates the provisions of section 5. (NRS 240.150) 26
Existing law generally requires a person who is registered to provide document 27
preparation services to file with the Secretary of State a cash bond or surety bond to 28
indemnify persons injured by certain acts or omissions by the registrant. (NRS 29
240A.120) However, existing law: (1) authorizes a business entity that has one or 30
more employees who perform document preparation services to file such a bond on 31
behalf of all such employees; and (2) exempts the employees of a business entity 32
that files such a bond from the requirement to file their own bonds. (NRS 33
240A.123) Sections 5.3-5.7 of this bill authorize a registrant who performs 34
document preparation services under more than one business entity to file one bond 35
for each such business entity and establish the amount of such a bond on the 36
number of business entities under which the registrant performs document 37
preparation services. Section 8 of this bill makes a conforming change to allow a 38
registrant to perform document preparation services under multiple entities under 39
one bond. Sections 9 and 9.5 of this bill authorize a business entity to file such a 40
bond on behalf of its independent contractors who provide document preparation 41
services. 42
Sections 6 and 7 of this bill require an applicant for the issuance or renewal of 43
registration as a document preparation service to provide a list of each entity under 44
which the applicant intends to perform document preparation services during the 45
following calendar year. Section 10 of this bill prohibits a registrant from engaging 46
in the business of a document preparation service for or under any entity for which 47
a bond has not been filed. Under existing law, a registrant who violates that 48
prohibition would be subject to certain administrative sanctions. (NRS 240A.270) 49
Additionally, a registrant who willfully violates that prohibition is subject to certain 50
criminal penalties. (NRS 240A.290) 51
Existing law authorizes the Secretary of State to conduct or cause to be 52
conducted an investigation if the Secretary of State obtains information that a 53
provision of law, regulation or order relating to document preparation services has 54
been violated. (NRS 240A.260) Sections 1 and 11 of this bill make information 55
and documents obtained by or filed with the Secretary of State in connection with 56
an investigation confidential. 57
– 3 –
- *AB72_R1*
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 239.010 is hereby amended to read as follows: 1
239.010 1. Except as otherwise provided in this section and 2
NRS 1.4683, 1.4687, 1A.110, 3.2203, 41.0397, 41.071, 49.095, 3
49.293, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 4
62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 5
80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 6
87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 7
88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 8
116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 9
119A.280, 119A.653, 119A.677, 119B.370, 119B.382, 120A.640, 10
120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 11
127.007, 127.057, 127.130, 127.140, 127.2817, 128.090, 130.312, 12
130.712, 136.050, 159.044, 159A.044, 164.041, 172.075, 172.245, 13
176.01334, 176.01385, 176.015, 176.0625, 176.09129, 176.156, 14
176A.630, 178.39801, 178.4715, 178.5691, 178.5717, 179.495, 15
179A.070, 179A.165, 179D.160, 180.600, 200.3771, 200.3772, 16
200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3923, 17
209.3925, 209.419, 209.429, 209.521, 211A.140, 213.010, 213.040, 18
213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 19
218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 218G.615, 20
224.240, 226.462, 226.796, 228.270, 228.450, 228.495, 228.570, 21
231.069, 231.1285, 231.1473, 232.1369, 233.190, 237.300, 22
239.0105, 239.0113, 239.014, 239B.026, 239B.030, 239B.040, 23
239B.050, 239C.140, 239C.210, 239C.230, 239C.250, 239C.270, 24
239C.420, 240.007, 240A.260, 241.020, 241.030, 241.039, 242.105, 25
244.264, 244.335, 247.540, 247.545, 247.550, 247.560, 250.087, 26
250.130, 250.140, 250.145, 250.150, 268.095, 268.0978, 268.490, 27
268.910, 269.174, 271A.105, 281.195, 281.805, 281A.350, 28
281A.680, 281A.685, 281A.750, 281A.755, 281A.780, 284.4068, 29
284.4086, 286.110, 286.118, 287.0438, 289.025, 289.080, 289.387, 30
289.830, 293.4855, 293.5002, 293.503, 293.504, 293.558, 293.5757, 31
293.870, 293.906, 293.908, 293.909, 293.910, 293B.135, 293D.510, 32
331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 33
338.1593, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 34
353A.049, 353A.085, 353A.100, 353C.240, 353D.250, 360.240, 35
360.247, 360.255, 360.755, 361.044, 361.2242, 361.610, 365.138, 36
366.160, 368A.180, 370.257, 370.327, 372A.080, 378.290, 378.300, 37
379.0075, 379.008, 379.1495, 385A.830, 385B.100, 387.626, 38
387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 39
388A.247, 388A.249, 391.033, 391.035, 391.0365, 391.120, 40
391.925, 392.029, 392.147, 392.264, 392.271, 392.315, 392.317, 41
392.325, 392.327, 392.335, 392.850, 393.045, 394.167, 394.16975, 42
– 4 –
- *AB72_R1*
394.1698, 394.447, 394.460, 394.465, 396.1415, 396.1425, 396.143, 1
396.159, 396.3295, 396.405, 396.525, 396.535, 396.9685, 2
398A.115, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 3
414.280, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 4
425.400, 427A.1236, 427A.872, 427A.940, 432.028, 432.205, 5
432B.175, 432B.280, 432B.290, 432B.4018, 432B.407, 432B.430, 6
432B.560, 432B.5902, 432C.140, 432C.150, 433.534, 433A.360, 7
439.4941, 439.4988, 439.5282, 439.840, 439.914, 439A.116, 8
439A.124, 439B.420, 439B.754, 439B.760, 439B.845, 440.170, 9
441A.195, 441A.220, 441A.230, 442.330, 442.395, 442.735, 10
442.774, 445A.665, 445B.570, 445B.7773, 449.209, 449.245, 11
449.4315, 449A.112, 450.140, 450B.188, 450B.805, 453.164, 12
453.720, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 13
459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 14
463.790, 467.1005, 480.535, 480.545, 480.935, 480.940, 481.063, 15
481.091, 481.093, 482.170, 482.368, 482.5536, 483.340, 483.363, 16
483.575, 483.659, 483.800, 484A.469, 484B.830, 484B.833, 17
484E.070, 485.316, 501.344, 503.452, 522.040, 534A.031, 561.285, 18
571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 19
598A.420, 599B.090, 603.070, 603A.210, 604A.303, 604A.710, 20
604D.500, 604D.600, 612.265, 616B.012, 616B.015, 616B.315, 21
616B.350, 618.341, 618.425, 622.238, 622.310, 623.131, 623A.137, 22
624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 23
628B.760, 629.043, 629.047, 629.069, 630.133, 630.2671, 24
630.2672, 630.2673, 630.2687, 630.30665, 630.336, 630A.327, 25
630A.555, 631.332, 631.368, 632.121, 632.125, 632.3415, 26
632.3423, 632.405, 633.283, 633.301, 633.427, 633.4715, 633.4716, 27
633.4717, 633.524, 634.055, 634.1303, 634.214, 634A.169, 28
634A.185, 634B.730, 635.111, 635.158, 636.262, 636.342, 637.085, 29
637.145, 637B.192, 637B.288, 638.087, 638.089, 639.183, 30
639.2485, 639.570, 640.075, 640.152, 640A.185, 640A.220, 31
640B.405, 640B.730, 640C.580, 640C.600, 640C.620, 640C.745, 32
640C.760, 640D.135, 640D.190, 640E.225, 640E.340, 641.090, 33
641.221, 641.2215, 641A.191, 641A.217, 641A.262, 641B.170, 34
641B.281, 641B.282, 641C.455, 641C.760, 641D.260, 641D.320, 35
642.524, 643.189, 644A.870, 645.180, 645.625, 645A.050, 36
645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 37
645D.135, 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 38
648.033, 648.197, 649.065, 649.067, 652.126, 652.228, 653.900, 39
654.110, 656.105, 657A.510, 661.115, 665.130, 665.133, 669.275, 40
669.285, 669A.310, 670B.680, 671.365, 671.415, 673.450, 673.480, 41
675.380, 676A.340, 676A.370, 677.243, 678A.470, 678C.710, 42
678C.800, 679B.122, 679B.124, 679B.152, 679B.159, 679B.190, 43
679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 44
681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 45
– 5 –
- *AB72_R1*
687A.060, 687A.115, 687B.404, 687C.010, 688C.230, 688C.480, 1
688C.490, 689A.696, 692A.117, 692C.190, 692C.3507, 692C.3536, 2
692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 3
696C.120, 703.196, 704B.325, 706.1725, 706A.230, 710.159, 4
711.600, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 5
2011 and section 2 of chapter 391, Statutes of Nevada 2013 and 6
unless otherwise declared by law to be confidential, all public books 7
and public records of a governmental entity must be open at all 8
times during office hours to inspection by any person, and may be 9
fully copied or an abstract or memorandum may be prepared from 10
those public books and public records. Any such copies, abstracts or 11
memoranda may be used to supply the general public with copies, 12
abstracts or memoranda of the records or may be used in any other 13
way to the advantage of the governmental entity or of the general 14
public. This section does not supersede or in any manner affect the 15
federal laws governing copyrights or enlarge, diminish or affect in 16
any other manner the rights of a person in any written book or 17
record which is copyrighted pursuant to federal law. 18
2. A governmental entity may not reject a book or record 19
which is copyrighted solely because it is copyrighted. 20
3. A governmental entity that has legal custody or control of a 21
public book or record shall not deny a request made pursuant to 22
subsection 1 to inspect or copy or receive a copy of a public book or 23
record on the basis that the requested public book or record contains 24
information that is confidential if the governmental entity can 25
redact, delete, conceal or separate, including, without limitation, 26
electronically, the confidential information from the information 27
included in the public book or record that is not otherwise 28
confidential. 29
4. If requested, a governmental entity shall provide a copy of a 30
public record in an electronic format by means of an electronic 31
medium. Nothing in this subsection requires a governmental entity 32
to provide a copy of a public record in an electronic format or by 33
means of an electronic medium if: 34
(a) The public record: 35
(1) Was not created or prepared in an electronic format; and 36
(2) Is not available in an electronic format; or 37
(b) Providing the public record in an electronic format or by 38
means of an electronic medium would: 39
(1) Give access to proprietary software; or 40
(2) Require the production of information that is confidential 41
and that cannot be redacted, deleted, concealed or separated from 42
information that is not otherwise confidential. 43
5. An officer, employee or agent of a governmental entity who 44
has legal custody or control of a public record: 45
– 6 –
- *AB72_R1*
(a) Shall not refuse to provide a copy of that public record in the 1
medium that is requested because the officer, employee or agent has 2
already prepared or would prefer to provide the copy in a different 3
medium. 4
(b) Except as otherwise provided in NRS 239.030, shall, upon 5
request, prepare the copy of the public record and shall not require 6
the person who has requested the copy to prepare the copy himself 7
or herself. 8
Sec. 2. NRS 240.017 is hereby amended to read as follows: 9
240.017 The Secretary of State: 10
1. May adopt regulations: 11
(a) Prescribing the procedure for the appointment and 12
mandatory training of a notary public. 13
(b) Establishing procedures for the notarization of digital or 14
electronic signatures. 15
(c) Establishing a code of professional responsibility for 16
notaries public. 17
2. Shall adopt regulations prescribing the form of each affidavit 18
required pursuant to subsection 2 of NRS 240.030. 19
Sec. 3. NRS 240.075 is hereby amended to read as follows: 20
240.075 1. A notary public shall not: 21
[1.] (a) Influence a person to enter or not enter into a lawful 22
transaction involving a notarial act performed by the notary public. 23
[2.] (b) Certify an instrument containing a statement known by 24
the notary public to be false. 25
[3.] (c) Perform any act as a notary public with intent to deceive 26
or defraud, including, without limitation, altering the journal that the 27
notary public is required to keep pursuant to NRS 240.120. 28
[4.] (d) Endorse or promote any product, service or offering if 29
his or her appointment as a notary public is used in the endorsement 30
or promotional statement. 31
[5.] (e) Certify photocopies of a certificate of birth, death or 32
marriage or a divorce decree. 33
[6.] (f) Allow any other person to use his or her notary’s stamp. 34
[7.] (g) Allow any other person to sign the notary’s name in a 35
notarial capacity. 36
[8.] (h) Perform a notarial act on a document that contains only 37
a signature. 38
[9.] (i) Perform a notarial act on a document, including a form 39
that requires the signer to provide information within blank spaces, 40
unless the document has been filled out completely and has been 41
signed. 42
[10.] (j) Make or note a protest of a negotiable instrument 43
unless the notary public is employed by a depository institution and 44
the protest is made or noted within the scope of that employment. 45
– 7 –
- *AB72_R1*
As used in this subsection, “depository institution” has the meaning 1
ascribed to it in NRS 657.037. 2
[11.] (k) Affix his or her stamp to any document which does not 3
contain a notarial certificate. 4
2. A notarial officer may refuse to perform a notarial act if 5
the notarial officer is not satisfied that: 6
(a) The person executing the record is competent or has the 7
capacity to execute the record; or 8
(b) The persons signature is knowingly and voluntarily made. 9
3. A notarial officer may refuse to perform a notarial act 10
unless a refusal to perform the notarial act is otherwise prohibited 11
by law. 12
4. As used in this section, “competent” means the principal 13
reasonably appears in possession of the mental capacity to 14
understand the nature and consequences of the notarial act. 15
Sec. 4. NRS 240.150 is hereby amended to read as follows: 16
240.150 1. For misconduct or neglect in a case in which a 17
notary public appointed pursuant to the authority of this State may 18
act, either by the law of this State or of another state, territory or 19
country, or by the law of nations, or by commercial usage, the 20
notary public is liable on his or her official bond to the parties 21
injured thereby, for all the damages sustained. 22
2. The employer of a notary public may be assessed a civil 23
penalty by the Secretary of State of not more than $2,000 for each 24
violation specified in subsection 4 committed by the notary public, 25
and the employer is liable for any damages proximately caused by 26
the misconduct of the notary public, if: 27
(a) The notary public was acting within the scope of his or her 28
employment at the time the notary public engaged in the 29
misconduct; and 30
(b) The employer of the notary public consented to the 31
misconduct of the notary public. 32
3. The Secretary of State may refuse to appoint or may suspend 33
or revoke the appointment of a notary public who fails to provide to 34
the Secretary of State, within a reasonable time, information that the 35
Secretary of State requests from the notary public in connection 36
with a complaint which alleges a violation of this chapter. 37
4. Except as otherwise provided in this chapter, for any willful 38
violation or neglect of duty or other violation of this chapter [,] or 39
any regulation adopted pursuant thereto, or upon proof that a 40
notary public has been convicted of, or entered a plea of guilty, 41
guilty but mentally ill or nolo contendere to, a crime described in 42
paragraph (c) of subsection 2 of NRS 240.010: 43
– 8 –
- *AB72_R1*
(a) The appointment of the notary public may be suspended for 1
a period determined by the Secretary of State, but not exceeding the 2
time remaining on the appointment; 3
(b) The appointment of the notary public may be revoked after a 4
hearing; or 5
(c) The notary public may be assessed a civil penalty of not 6
more than $2,000 for each violation. 7
5. If the Secretary of State revokes or suspends the 8
appointment of a notary public pursuant to this section, the 9
Secretary of State shall: 10
(a) Notify the notary public in writing of the revocation or 11
suspension; 12
(b) Cause notice of the revocation or suspension to be published 13
on the website of the Secretary of State; and 14
(c) If a county clerk has issued a certificate of permission to 15
perform marriages to the notary public pursuant to NRS 122.064, 16
notify the county clerk of the revocation or suspension. 17
6. Except as otherwise provided by law, the Secretary of State 18
may assess the civil penalty that is authorized pursuant to this 19
section upon a notary public whose appointment has expired if the 20
notary public committed the violation that justifies the civil penalty 21
before his or her appointment expired. 22
7. The appointment of a notary public may be suspended or 23
revoked by the Secretary of State pending a hearing if the Secretary 24
of State believes it is in the public interest or is necessary to protect 25
the public. 26
Sec. 5. NRS 240.1993 is hereby amended to read as follows: 27
240.1993 1. An electronic notary public may perform an 28
electronic notarial act using audio-video communication in 29
accordance with NRS 240.181 to 240.206, inclusive, and any rules 30
or regulations adopted by the Secretary of State for a person who is 31
physically located: 32
(a) In this State; 33
(b) Outside this State but within the United States; or 34
(c) Outside the United States if: 35
(1) The electronic notary public has no actual knowledge of 36
the electronic notarial act being prohibited in the jurisdiction in 37
which the person is physically located; and 38
(2) The person placing his or her electronic signature on the 39
electronic document confirms to the electronic notary public that the 40
requested electronic notarial act and the electronic document: 41
(I) Are part of or pertain to a matter that is to be filed with 42
or is currently before a court, governmental entity or other entity in 43
the United States; 44
(II) Relate to property located in the United States; or 45
– 9 –
- *AB72_R1*
(III) Relate to a transaction substantially connected to the 1
United States. 2
2. An electronic notary public who is registered with the 3
Secretary of State pursuant to NRS 240.192 [may] shall not perform 4
an electronic notarial act using audio-video communication in 5
accordance with NRS 240.181 to 240.206, inclusive, and any rules 6
or regulations adopted by the Secretary of State [if] unless the 7
electronic notary public is physically present in this State at the time 8
of performing the electronic notarial act, regardless of whether the 9
person who placed the electronic signature on the electronic 10
document is physically located in another jurisdiction at the time of 11
the electronic notarial act. The validity of the notarial act will be 12
determined by applying the laws of this State. 13
Sec. 5.3. Chapter 240A of NRS is hereby amended by adding 14
thereto the provisions set forth as sections 5.5 and 5.7 of this act. 15
Sec. 5.5. 1. A registrant who performs document 16
preparation services under a sole proprietorship or more than one 17
business entity may file with the Secretary of State a cash bond or 18
surety bond on behalf of the sole proprietorship or each business 19
entity under which the registrant performs document preparation 20
services. Any such bond must be for the applicable amount set 21
forth in section 5.7 of this act. 22
2. A cash or surety bond filed pursuant to subsection 1 must 23
be approved as to form by the Attorney General and conditioned to 24
provide: 25
(a) Indemnification to a client or any other person who is 26
determined in an action or proceeding to have suffered damage as 27
a result of: 28
(1) An act or omission of the registrant or the sole 29
proprietorship or business entity which violates a provision of this 30
chapter or a regulation or order adopted or issued pursuant 31
thereto; 32
(2) A wrongful failure or refusal by the registrant or the 33
sole proprietorship or business entity to provide services in 34
accordance with a contract entered into pursuant to 35
NRS 240A.190; 36
(3) The fraud, dishonesty, negligence or other wrongful 37
conduct of the registrant or the sole proprietorship or business 38
entity; or 39
(4) An act or omission of the registrant or the sole 40
proprietorship or business entity in violation of any other federal 41
or state law for which the return of fees, an award of damages or 42
the imposition of sanctions have been awarded by a court of 43
competent jurisdiction in this State; or 44
– 10 –
- *AB72_R1*
(b) Payment to the Secretary of State for any civil penalty or 1
award of attorney’s fees or costs of suit owing and unpaid by the 2
registrant or the sole proprietorship or business entity to the 3
Secretary of State pursuant to this chapter. 4
3. No part of a bond filed pursuant to this section may be 5
withdrawn while the registration of the registrant who performs 6
document preparation services under the sole proprietorship or 7
business entity remains in effect, or while a proceeding to suspend 8
or revoke the registration is pending. 9
4. If a surety bond is filed pursuant to subsection 1: 10
(a) Except as otherwise provided in subsection 5, the bond 11
must be executed by the registrant and by a surety company 12
qualified and authorized to do business in this State. 13
(b) The bond must cover the period of registration of the 14
registrant, except when the surety is released in accordance with 15
this section. 16
(c) The surety shall pay any final, nonappealable judgment of 17
a court of this State that has jurisdiction, upon receipt of written 18
notice that the judgment is final. 19
(d) The bond may be continuous, but regardless of the 20
duration of the bond, the aggregate liability of the surety does not 21
exceed the penal sum of the bond. 22
(e) If the penal sum of the bond is exhausted, the surety shall 23
give written notice to the Secretary of State and the registrant 24
within 30 days after its exhaustion. 25
(f) The surety may be released after giving 30 days’ written 26
notice to the Secretary of State and the registrant, but the release 27
does not discharge or otherwise affect any claim resulting from an 28
act or omission which is alleged to have occurred while the bond 29
was in effect. 30
5. Except as otherwise provided in this subsection, if a cash 31
bond is filed pursuant to subsection 1, the Secretary of State may 32
retain the bond until the expiration of 3 years after the date the 33
registrant has ceased to do business under the sole proprietorship 34
or each business covered under the bond, or 3 years after the date 35
of the expiration or revocation of the registration of the registrant, 36
to ensure that there are no outstanding claims against the bond. A 37
court of competent jurisdiction may order the return of the bond, 38
or any part of the bond, at an earlier date upon evidence 39
satisfactory to the court that there are no outstanding claims 40
against the bond or that the part of the bond retained by the 41
Secretary of State is sufficient to satisfy any outstanding claims. 42
Interest on a cash bond filed pursuant to subsection 1 must accrue 43
to the account of the depositor. 44
– 11 –
- *AB72_R1*
6. The registration of a registrant who performs document 1
preparation services under a sole proprietorship or more than one 2
business entity is suspended by operation of law when the 3
registrant is no longer covered by a bond or the penal sum of the 4
bond is exhausted. If the Secretary of State receives notice 5
pursuant to subsection 4 that the penal sum of a surety bond is 6
exhausted or that the surety is being released, the Secretary of 7
State shall immediately notify the registrant covered under the 8
bond in writing that their registration is suspended by operation of 9
law until another bond is filed in the same manner and amount as 10
the former bond. 11
7. The Secretary of State may reinstate the registration of a 12
registrant whose registration has been suspended pursuant to 13
subsection 6 if, before the current term of the registration expires, 14
the registrant files with the Secretary of State a new bond meeting 15
the requirements of this section or the registrant files with the 16
Secretary of State a new bond meeting the requirements of NRS 17
240A.120 or NRS 240A.123 and 240.125. 18
8. Except as specifically authorized or required by this 19
chapter, a registrant shall not make or cause to be made any oral 20
or written reference to the registrant’s compliance with the 21
requirements of this section. 22
Sec. 5.7. A bond filed by a registrant pursuant to section 5.5 23
of this act must be in the penal sum of: 24
1. If the registrant performs document preparation services 25
under a sole proprietorship or one business entity, $25,000; 26
2. If the registrant performs document preparation services 27
under at least 2 but not more than 4 business entities, $50,000; 28
3. If the registrant performs document preparation services 29
under at least 5 but not more than 10 business entities, $100,000; 30
4. If the registrant performs document preparation services 31
under more than 10 business entities, $200,000. 32
Sec. 6. NRS 240A.100 is hereby amended to read as follows: 33
240A.100 1. A person who wishes to engage in the business 34
of a document preparation service must be registered by the 35
Secretary of State pursuant to this chapter. An applicant for 36
registration must be: 37
(a) A natural person; 38
(b) A citizen or legal resident of the United States or hold a 39
valid Employment Authorization Document issued by the United 40
States Citizenship and Immigration Services of the Department of 41
Homeland Security; and 42
(c) At least 18 years of age. 43
2. The Secretary of State shall not register as a document 44
preparation service any person: 45
– 12 –
- *AB72_R1*
(a) Who is suspended or has previously been disbarred from the 1
practice of law in any jurisdiction; 2
(b) Whose registration as a document preparation service in this 3
State or another state has previously been revoked for cause; 4
(c) Whose appointment or registration as a notary public in this 5
State or another state has been previously revoked or suspended for 6
cause; 7
(d) Who has previously been convicted of, or entered a plea of 8
guilty, guilty but mentally ill or nolo contendere to, a gross 9
misdemeanor or a category D felony pursuant to NRS 240A.290; or 10
(e) Who has, within the 10 years immediately preceding the date 11
of the application for registration as a document preparation service, 12
been: 13
(1) Convicted of, or entered a plea of guilty, guilty but 14
mentally ill or nolo contendere to, a crime involving theft, fraud or 15
dishonesty; 16
(2) Convicted of, or entered a plea of guilty, guilty but 17
mentally ill or nolo contendere to, the unauthorized practice of law 18
pursuant to NRS 7.285 or the corresponding statute of any other 19
jurisdiction; or 20
(3) Adjudged by the final judgment of any court to have 21
committed an act involving theft, fraud or dishonesty. 22
3. An application for registration as a document preparation 23
service must be made under penalty of perjury on a form prescribed 24
by regulation of the Secretary of State and must be accompanied by: 25
(a) A nonrefundable application fee of $100; [and] 26
(b) A list of each business entity or sole proprietorship under 27
which the applicant intends to perform document preparation 28
services during the following calendar year; and 29
(c) A cash bond or surety bond meeting the requirements of 30
NRS 240A.120 or section 5.3 of this act, as applicable, or proof 31
that the applicant is covered by a bond filed by a business entity 32
pursuant to NRS 240A.123. 33
4. An applicant for registration must submit to the Secretary of 34
State a declaration under penalty of perjury stating that the applicant 35
has not had a certificate or license as a document preparation service 36
revoked or suspended in this State or any other state or territory of 37
the United States. 38
5. After the investigation of the history of the applicant is 39
completed, the Secretary of State shall issue a certificate of 40
registration if the applicant is qualified for registration and has 41
complied with the requirements of this section. Each certificate of 42
registration must bear the name of the registrant and a registration 43
number unique to that registrant. The Secretary of State shall 44
– 13 –
- *AB72_R1*
maintain a record of the name and registration number of each 1
registrant. 2
6. An application for registration as a document preparation 3
service that is not completed within 120 days after the date on which 4
the application was submitted must be denied. If an application is 5
denied pursuant to this subsection, the applicant may submit a new 6
application. 7
Sec. 7. NRS 240A.110 is hereby amended to read as follows: 8
240A.110 1. The registration of a document preparation 9
service is valid for 1 year after the date of issuance of the certificate 10
of registration, unless the registration is suspended or revoked. 11
Except as otherwise provided in this section, the registration may be 12
renewed subject to the same conditions as the initial registration. An 13
application for renewal must be made under penalty of perjury on a 14
form prescribed by regulation of the Secretary of State and must be 15
accompanied by: 16
(a) A renewal fee of $50; [and] 17
(b) A list of each business entity or sole proprietorship under 18
which the applicant intends to perform document preparation 19
services during the following calendar year; and 20
(c) A cash bond or surety bond meeting the requirements of 21
NRS 240A.120 or section 5.5 of this act, as applicable, proof that 22
the applicant is covered by a bond filed by a business entity 23
pursuant to NRS 240A.123, unless the bond previously filed by the 24
registrant remains on file and in effect. 25
2. The registration of a registrant who holds a valid 26
Employment Authorization Document issued by the United States 27
Citizenship and Immigration Services of the Department of 28
Homeland Security must expire on the date on which that person’s 29
employment authorization expires. 30
3. The Secretary of State may: 31
(a) Conduct any investigation of a registrant that the Secretary 32
of State deems appropriate. 33
(b) Require a registrant to submit a complete set of fingerprints 34
and written permission authorizing the Secretary of State to forward 35
the fingerprints to the Central Repository for Nevada Records of 36
Criminal History for submission to the Federal Bureau of 37
Investigation for its report. 38
4. After any investigation of the history of a registrant is 39
completed, unless the Secretary of State elects or is required to deny 40
renewal pursuant to this section or NRS 240A.270, the Secretary of 41
State shall renew the registration if the registrant is qualified for 42
registration and has complied with the requirements of this section. 43
– 14 –
- *AB72_R1*
Sec. 8. NRS 240A.120 is hereby amended to read as follows: 1
240A.120 1. Except as otherwise provided in NRS 240A.123 2
and 240A.125, a registrant shall file with the Secretary of State a 3
cash bond or surety bond . Except as otherwise provided in section 4
5.7 of this act, the cash bond or surety bond must be in the penal 5
sum of $25,000 which is approved as to form by the Attorney 6
General and conditioned to provide: 7
(a) Indemnification to a client or any other person who is 8
determined in an action or proceeding to have suffered damage as a 9
result of: 10
(1) An act or omission of the registrant, or an agent or 11
employee of the registrant, which violates a provision of this chapter 12
or a regulation or order adopted or issued pursuant thereto; 13
(2) A wrongful failure or refusal by the registrant, or an 14
agent or employee of the registrant, to provide services in 15
accordance with a contract entered into pursuant to NRS 240A.190; 16
(3) The fraud, dishonesty, negligence or other wrongful 17
conduct of the registrant or an agent or employee of the registrant; 18
or 19
(4) An act or omission of the registrant in violation of any 20
other federal or state law for which the return of fees, an award of 21
damages or the imposition of sanctions have been awarded by a 22
court of competent jurisdiction in this State; or 23
(b) Payment to the Secretary of State for any civil penalty or 24
award of attorney’s fees or costs of suit owing and unpaid by the 25
registrant to the Secretary of State pursuant to this chapter. 26
2. No part of the bond may be withdrawn while the registration 27
of the registrant remains in effect, or while a proceeding to suspend 28
or revoke the registration is pending. 29
3. If a surety bond is filed pursuant to subsection 1: 30
(a) The bond must be executed by the registrant as principal and 31
by a surety company qualified and authorized to do business in this 32
State. 33
(b) The bond must cover the period of the registration of the 34
registrant, except when the surety is released in accordance with this 35
section. 36
(c) The surety shall pay any final, nonappealable judgment of a 37
court of this State that has jurisdiction, upon receipt of written 38
notice that the judgment is final. 39
(d) The bond may be continuous, but regardless of the duration 40
of the bond, the aggregate liability of the surety does not exceed the 41
penal sum of the bond. 42
(e) If the penal sum of the bond is exhausted, the surety shall 43
give written notice to the Secretary of State and the registrant within 44
30 days after its exhaustion. 45
– 15 –
- *AB72_R1*
(f) The surety may be released after giving 30 days’ written 1
notice to the Secretary of State and the registrant, but the release 2
does not discharge or otherwise affect any claim resulting from an 3
act or omission which is alleged to have occurred while the bond 4
was in effect. 5
4. Except as otherwise provided in this subsection, if a cash 6
bond is filed pursuant to subsection 1, the Secretary of State may 7
retain the bond until the expiration of 3 years after the date the 8
registrant has ceased to do business, or 3 years after the date of the 9
expiration or revocation of the registration, to ensure that there are 10
no outstanding claims against the bond. A court of competent 11
jurisdiction may order the return of the bond, or any part of the 12
bond, at an earlier date upon evidence satisfactory to the court that 13
there are no outstanding claims against the bond or that the part of 14
the bond retained by the Secretary of State is sufficient to satisfy 15
any outstanding claims. Interest on a cash bond filed pursuant to 16
subsection 1 must accrue to the account of the depositor. 17
5. The registration of a registrant is suspended by operation of 18
law when the registrant is no longer covered by a bond or the penal 19
sum of the bond is exhausted. If the Secretary of State receives 20
notice pursuant to subsection 3 that the penal sum of a surety bond 21
is exhausted or that the surety is being released, the Secretary of 22
State shall immediately notify the registrant in writing that his or her 23
registration is suspended by operation of law until another bond is 24
filed in the same manner and amount as the former bond. 25
6. The Secretary of State may reinstate the registration of a 26
registrant whose registration has been suspended pursuant to 27
subsection 5 if, before the current term of the registration expires, 28
the registrant files with the Secretary of State a new bond meeting 29
the requirements of this section. 30
7. Except as specifically authorized or required by this chapter, 31
a registrant shall not make or cause to be made any oral or written 32
reference to the registrant’s compliance with the requirements of 33
this section. 34
Sec. 9. NRS 240A.123 is hereby amended to read as follows: 35
240A.123 1. A business entity that has one or more 36
employees or contracts with one or more independent contractors 37
who perform document preparation services [may] or advertise 38
document preparation services pursuant to NRS 240A.150 shall 39
file with the Secretary of State a cash bond or surety bond on behalf 40
of all employees and independent contractors of the business entity 41
who are registered as a document preparation service and provide 42
document preparation services for the business entity. Any such 43
bond must be for the applicable amount set forth in NRS 240A.125. 44
– 16 –
- *AB72_R1*
2. If a business entity files a cash bond or surety bond pursuant 1
to subsection 1, the employees and independent contractors of the 2
business entity who are covered by the bond are not required to file 3
a cash bond or surety bond pursuant to NRS 240A.120 [.] with 4
respect to documentation preparation services provided for that 5
business entity. 6
3. A cash or surety bond filed pursuant to subsection 1 must be 7
approved as to form by the Attorney General and conditioned to 8
provide: 9
(a) Indemnification to a client or any other person who is 10
determined in an action or proceeding to have suffered damage as a 11
result of: 12
(1) An act or omission of a registrant employed or 13
contracted by the business entity which violates a provision of this 14
chapter or a regulation or order adopted or issued pursuant thereto; 15
(2) A wrongful failure or refusal by a registrant employed or 16
contracted by the business entity to provide services in accordance 17
with a contract entered into pursuant to NRS 240A.190; 18
(3) The fraud, dishonesty, negligence or other wrongful 19
conduct of a registrant employed or contracted by the business 20
entity; or 21
(4) An act or omission of a registrant employed or 22
contracted by the business entity in violation of any other federal or 23
state law for which the return of fees, an award of damages or the 24
imposition of sanctions have been awarded by a court of competent 25
jurisdiction in this State; or 26
(b) Payment to the Secretary of State for any civil penalty or 27
award of attorney’s fees or costs of suit owing and unpaid by a 28
registrant employed or contracted by the business entity to the 29
Secretary of State pursuant to this chapter. 30
4. No part of a bond filed pursuant to this section may be 31
withdrawn while the registration of a registrant employed or 32
contracted by the business entity remains in effect, or while a 33
proceeding to suspend or revoke the registration is pending. 34
5. If a surety bond is filed pursuant to subsection 1: 35
(a) Except as otherwise provided in subsection 6, the bond must 36
be executed by the business entity as principal and by a surety 37
company qualified and authorized to do business in this State. 38
(b) The bond must cover the period of registration of each 39
employee and independent contractor of the business entity who is 40
registered as a document preparation service and performs 41
document preparation services for the business entity, except when 42
the surety is released in accordance with this section. 43
– 17 –
- *AB72_R1*
(c) The surety shall pay any final, nonappealable judgment of a 1
court of this State that has jurisdiction, upon receipt of written 2
notice that the judgment is final. 3
(d) The bond may be continuous, but regardless of the duration 4
of the bond, the aggregate liability of the surety does not exceed the 5
penal sum of the bond. 6
(e) If the penal sum of the bond is exhausted, the surety shall 7
give written notice to the Secretary of State and the business entity 8
within 30 days after its exhaustion. 9
(f) The surety may be released after giving 30 days’ written 10
notice to the Secretary of State and the business entity, but the 11
release does not discharge or otherwise affect any claim resulting 12
from an act or omission which is alleged to have occurred while the 13
bond was in effect. 14
6. If a business entity employs or contracts with only one 15
registrant to perform document preparation services, the registrant 16
must be named as principal in the bond filed pursuant to this section. 17
7. Except as otherwise provided in this subsection, if a cash 18
bond is filed pursuant to subsection 1, the Secretary of State may 19
retain the bond until the expiration of 3 years after the date the 20
business entity has ceased to do business, or 3 years after the date of 21
the expiration or revocation of the registration of each employee 22
and independent contractor of the business entity who is registered 23
as a document preparation service and performs document 24
preparation services for the business entity, to ensure that there are 25
no outstanding claims against the bond. A court of competent 26
jurisdiction may order the return of the bond, or any part of the 27
bond, at an earlier date upon evidence satisfactory to the court that 28
there are no outstanding claims against the bond or that the part of 29
the bond retained by the Secretary of State is sufficient to satisfy 30
any outstanding claims. Interest on a cash bond filed pursuant to 31
subsection 1 must accrue to the account of the depositor. 32
8. The registration of a registrant is suspended by operation of 33
law when the registrant is no longer covered by a bond or the penal 34
sum of the bond is exhausted. If the Secretary of State receives 35
notice pursuant to subsection 5 that the penal sum of a surety bond 36
is exhausted or that the surety is being released, the Secretary of 37
State shall immediately notify the business entity and each registrant 38
covered under the bond in writing that their registration is 39
suspended by operation of law until another bond is filed in the 40
same manner and amount as the former bond. 41
9. The Secretary of State may reinstate the registration of a 42
registrant whose registration has been suspended pursuant to 43
subsection 8 if, before the current term of the registration expires, 44
the business entity files with the Secretary of State a new bond 45
– 18 –
- *AB72_R1*
meeting the requirements of this section or the registrant files with 1
the Secretary of State a new bond meeting the requirements of NRS 2
240A.120 [.] or section 5.5 of this act. A registrant who files a new 3
bond pursuant to NRS 240A.120 or section 5.5 of this act shall not 4
provide document preparation services for a business entity that is 5
subject to the requirements of this section but has not filed a bond 6
pursuant to subsection 1. 7
10. Except as specifically authorized or required by this 8
chapter, a business entity or registrant shall not make or cause to be 9
made any oral or written reference to the registrant’s compliance 10
with the requirements of this section. 11
Sec. 9.5. NRS 240A.125 is hereby amended to read as 12
follows: 13
240A.125 1. A bond filed by a business entity pursuant to 14
NRS 240A.123 on behalf of the employees and independent 15
contractors of the business entity who are registered as a document 16
preparation service must be in the penal sum of: 17
(a) If the business entity employs or contracts with 1 registrant 18
to perform document preparation services, $25,000; 19
(b) If the business entity employs or contracts with at least 2 but 20
not more than 25 registrants to perform document preparation 21
services, $50,000; 22
(c) If the business entity employs or contracts with at least 26 23
but not more than 75 registrants to perform document preparation 24
services, $75,000; 25
(d) If the business entity employs or contracts with at least 76 26
but not more than 125 registrants to perform document preparation 27
services, $100,000; 28
(e) If the business entity employs or contracts with at least 126 29
but not more than 200 registrants to perform document preparation 30
services, $150,000; and 31
(f) If the business entity employs or contracts with more than 32
200 registrants to perform document preparation services, $200,000. 33
2. For purposes of determining the amount of the bond 34
required pursuant to subsection 1, the number of registrants 35
employed or contracted by a business entity to perform document 36
preparation services is the greatest number of registrants who will 37
perform document preparation services for the business entity at any 38
time during the year, including, without limitation, on a temporary 39
or seasonal basis. 40
Sec. 9.7. NRS 240A.127 is hereby amended to read as 41
follows: 42
240A.127 1. A claim against a bond filed pursuant to NRS 43
240A.120 or 240A.123 or section 5.5 of this act may be filed in a 44
court of competent jurisdiction for damages to the extent covered by 45
– 19 –
- *AB72_R1*
the bond. A claim may not be brought against a bond after 3 years 1
from the date of the act on which the action is based. 2
2. If a person commences an action pursuant to subsection 1, 3
he or she must notify the Secretary of State in writing upon filing 4
the action. Upon receiving such notification, the Secretary of State 5
shall notify the person: 6
(a) Whether the bond is in effect; 7
(b) The amount of the bond; and 8
(c) If there is any other claim against the bond, the title, court 9
and case number of the action and the amount sought by the plaintiff 10
in the other action. 11
3. If a surety wishes to make payment without awaiting action 12
by a court: 13
(a) The amount of the bond must be reduced to the extent of any 14
payment made by the surety in good faith under the bond; and 15
(b) Any payment must be based on written claims received by 16
the surety before any action is taken by a court. 17
4. A surety may bring an action for interpleader against all 18
claimants upon the bond. If such an action for interpleader is 19
brought, the surety: 20
(a) Shall publish notice of the action at least once each week for 21
2 weeks in every issue of a newspaper of general circulation in the 22
county of the principal place of business of the registrant or business 23
entity, as applicable; and 24
(b) May deduct its costs of the action, including, without 25
limitation, costs for attorney’s fees and publication, from its liability 26
under the bond. 27
5. Claims against a bond have equal priority. If a bond is 28
insufficient to pay all claims in full, the claims must be paid on a pro 29
rata basis. Any claimant may bring action against the registrant or 30
business entity, as applicable, for the unpaid balance of a claim. 31
Sec. 10. NRS 240A.240 is hereby amended to read as follows: 32
240A.240 1. A registrant shall not: 33
(a) After the date of the last service performed for a client, retain 34
any fees or costs for services not performed or costs not incurred. 35
(b) Make, orally or in writing: 36
(1) A promise of the result to be obtained by the filing or 37
submission of any document, unless the registrant has some basis in 38
fact for making the promise; 39
(2) A statement that the registrant has some special influence 40
with or is able to obtain special treatment from the court or agency 41
with which a document is to be filed or submitted; or 42
(3) A false or misleading statement to a client if the registrant 43
knows that the statement is false or misleading or knows that the 44
registrant lacks a sufficient basis for making the statement. 45
– 20 –
- *AB72_R1*
(c) Except as otherwise provided in subsection 3, in any 1
advertisement or written description of the registrant or the services 2
provided by the registrant, or on any letterhead or business card of 3
the registrant, use the term “legal aid,” “legal services,” “law 4
office,” “notario,” “notario publico,” “notary public,” “notary,” 5
“paralegal,” “legal assistant,” “licensed,” “licenciado,” “attorney,” 6
“lawyer” or any similar term, in English, Spanish or any other 7
language, which implies that the registrant: 8
(1) Offers services without charge if the registrant does not 9
do so; 10
(2) Is an attorney authorized to practice law in this State; or 11
(3) Is acting under the direction and supervision of an 12
attorney. 13
(d) Represent himself or herself, orally or in writing, as a 14
paralegal or legal assistant which implies that the registrant is acting 15
under the direction and supervision of an attorney licensed to 16
practice law in this State. 17
(e) Except as otherwise provided in subsection 2, negotiate with 18
another person concerning the rights or responsibilities of a client, 19
communicate the position of a client to another person or convey the 20
position of another person to a client. 21
(f) Except as otherwise provided in subsection 2, appear on 22
behalf of a client in a court proceeding or other formal adjudicative 23
proceeding, unless the registrant is ordered to appear by the court or 24
presiding officer. 25
(g) Except as otherwise provided in subsection 2, provide any 26
advice, explanation, opinion or recommendation to a client about 27
possible legal rights, remedies, defenses, options or the selection of 28
documents or strategies, except that a registrant may provide to a 29
client published factual information, written or approved by an 30
attorney, relating to legal procedures, rights or obligations. 31
(h) Engage in the business of a document preparation service 32
as an employee or independent contractor for an entity that is not 33
covered by a cash bond or surety bond filed pursuant to NRS 34
240A.123 or under a sole proprietorship or business entity unless 35
the registrant is covered by a cash bond or surety bond filed 36
pursuant to section 5.5 of this act. 37
(i) Seek or obtain from a client a waiver of any provision of this 38
chapter. Any such waiver is contrary to public policy and void. 39
2. The provisions of paragraphs (e), (f) and (g) of subsection 1 40
do not apply to a registrant to the extent that compliance with such 41
provisions would violate federal law. 42
3. A registrant who is also a notary public appointed by the 43
Secretary of State pursuant to chapter 240 of NRS and in good 44
standing with the Secretary of State may, in any advertisement or 45
– 21 –
- *AB72_R1*
written description of the registrant or the services provided by the 1
registrant, use the term “notary public.” 2
4. If the Secretary of State finds a registrant in violation of the 3
provisions of subsection 1, the Secretary of State may: 4
(a) Suspend the registration of the registrant for not less than 1 5
year. 6
(b) Revoke the registration of the registrant for a third or 7
subsequent offense. 8
(c) Assess a penalty of not more than $1,000 for each violation. 9
Sec. 11. NRS 240A.260 is hereby amended to read as follows: 10
240A.260 1. If the Secretary of State obtains information that 11
a provision of this chapter or a regulation or order adopted or issued 12
pursuant thereto has been violated by a registrant or another person, 13
the Secretary of State may conduct or cause to be conducted an 14
investigation of the alleged violation. 15
2. If, within a reasonable period of time, a registrant fails to 16
provide the Secretary of State with any information requested by the 17
Secretary of State during an investigation of an alleged violation by 18
the registrant, the Secretary of State may suspend or refuse to renew 19
the registration of the registrant. 20
3. If, after investigation, the Secretary of State determines that 21
a violation has occurred, the Secretary of State may: 22
(a) Serve, by certified mail addressed to the person who has 23
committed the violation, a written order directing the person to 24
cease and desist from the conduct constituting the violation. The 25
order must notify the person that any willful violation of the order 26
may subject the person to prosecution and criminal penalties 27
pursuant to NRS 240A.290 and penalties pursuant to this section 28
and NRS 240A.280. 29
(b) If a registrant has committed the violation: 30
(1) Revoke or suspend the registration of the registrant; or 31
(2) Impose a penalty of not more than $1,000 for each 32
violation. The authority of the Secretary of State to impose a penalty 33
applies regardless of whether the person is still a registrant at the 34
time that the penalty is imposed so long as the person was a 35
registrant at the time that he or she committed the violation. The 36
Secretary of State shall afford any person upon whom such a penalty 37
is imposed an opportunity for a hearing pursuant to the provisions of 38
NRS 233B.121. 39
(c) If a person engaged in the business of a document 40
preparation service and was not a registrant at the time of the 41
violation, after a hearing on the matter, impose a penalty for each 42
violation of not more than $5,000 or the amount of economic benefit 43
derived from the violation, whichever is greater. 44
– 22 –
- *AB72_R1*
(d) Refer the alleged violation to the Attorney General or a 1
district attorney for commencement of a civil action against the 2
person pursuant to NRS 240A.280. 3
(e) Refer the alleged violation to the Attorney General or a 4
district attorney for prosecution of the person pursuant to 5
NRS 240A.290. 6
(f) Take any combination of the actions described in this 7
subsection. 8
4. Any person who is aware of a violation of this chapter by a 9
document preparation service, a person applying for registration as a 10
document preparation service or a person who is engaging in the 11
business of a document preparation service and is not registered by 12
the Secretary of State pursuant to this chapter may file a complaint 13
with the Secretary of State setting forth the details of the violation 14
that are known by the person who is filing the complaint. 15
5. If the Secretary of State receives a complaint alleging a 16
violation of this chapter, the Secretary of State shall notify the 17
document preparation service or other person who is the subject of 18
the complaint. The notice: 19
(a) Must be sent by certified mail; 20
(b) Is deemed to have been received 3 days after the notice is 21
mailed; 22
(c) Must include, without limitation: 23
(1) A description of each allegation contained in the 24
complaint; 25
(2) A statement of each statutory provision which the 26
document preparation service or other person is alleged to have 27
violated; 28
(3) An explanation of any disciplinary action that may be 29
taken against the document preparation service or other person if the 30
Secretary of State determines that the alleged violation occurred; 31
(4) A statement that the document preparation service or 32
other person must respond to the notice not later than 15 days after 33
the notice is received; and 34
(5) Instructions on the manner in which the document 35
preparation service or other person may respond to the notice. 36
6. Any determination by the Secretary of State that a provision 37
of this chapter or a regulation or order adopted or issued pursuant 38
thereto has been violated by a registrant or another person and the 39
imposition of any penalty by the Secretary of State pursuant to this 40
section is a public record. 41
7. Except as otherwise necessary to refer an alleged violation 42
for the commencement of a civil action or prosecution pursuant to 43
paragraph (d) or (e), respectively, of subsection 3, information and 44
documents obtained by or filed with the Secretary of State in 45
– 23 –
- *AB72_R1*
connection with an investigation concerning a possible violation 1
of this chapter are not public information and are confidential. 2
Sec. 12. 1. If, pursuant to NRS 240A.123, as amended by 3
section 9 of this act, a business entity files with the Secretary of 4
State a cash bond or surety bond on behalf of an independent 5
contractor of the business entity and the independent contractor is 6
not required to file any other cash bond or surety bond with the 7
Secretary of State pursuant to NRS 240A.120, as amended by 8
section 8 of this act, 240A.123, as amended by section 9 of this act, 9
or section 5.5 of this act, the Secretary of State shall: 10
(a) Return a cash bond filed by the independent contractor 11
pursuant to NRS 240A.120, as that section existed before the 12
effective date of section 8 of this act. 13
(b) Allow the release of a surety bond filed by the independent 14
contractor pursuant to NRS 240A.120, as that section existed before 15
the effective date of section 8 of this act. 16
2. As used in this section, “business entity” has the meaning 17
ascribed to it in NRS 240A.015. 18
Sec. 13. 1. This section becomes effective upon passage and 19
approval. 20
2. Sections 1, 3, 5 and 11 of this act become effective on 21
October 1, 2025. 22
3. Sections 2, 4, 5.3 to 10, inclusive, and 12 of this act become 23
effective: 24
(a) Upon passage and approval for the purpose of adopting any 25
regulations and performing any other preparatory administrative 26
tasks that are necessary to carry out the provisions of this act; and 27
(b) On January 1, 2026, for all other purposes. 28
H