AB 280 — Revises provisions governing document preparation services. (BDR 19-254)

The Secretary of State may reinstate the registration of a registrant whose registration has been suspended pursuant to subsection 8 if, before the current term of the registration expires, the business entity files with the Secretary of State a new bond meeting the requirements of this section or the registrant files with the Secretary of State a new bond meeting the requirements of NRS 240A.120.

of State a new bond meeting the requirements of 10.

Except as specifically authorized or required by this chapter, a business entity or registrant shall not make or cause to - *AB280_R1* – 5 – be made any oral or written reference to the registrant’s compliance with the requirements of this section.

(b) If the business entity employs at least 2 but not more than 25 registrants to perform document preparation services, $50,000;

- 80th Session (2019) – 5 – (c) If the business entity employs at least 26 but not more than 75 registrants to perform document preparation services, $75,000;

(d) If the business entity employs at least 76 but not more than 125 registrants to perform document preparation services, $100,000;

and (f) If the business entity employs more than 200 registrants to per2.rmFor purposes of determining the amount of the bond required pursuant to subsection 1, the number of registrants employed by a business entity to perform document preparation services,services $200,000.is the greatest number of registrants who will perform document preparation services for the business entity at any time during the year, including, without limitation, on a temporary or seasonal basis.

2.Sec.

For purposes of determining the amount of the bond required pursuant to subsection 1, the number of registrants employed by a business entity to perform document preparation document preparation services for the business entity at any time during the year, including, without limitation, on a temporary or seaSec.

and (c) If there is any other claim against the bond, the title, court andplaintiff casein number of the actionother andaction.and the amount sought by the plaintiff3. in the other action.

3.

and - *AB280_R1* – 6 – (b) Any payment must be based on written claims received by the surety before any action is taken by a court.

(a) Shall publish notice of the action at least once each week for 2 weeks in every issue of a newspaper of general circulation in - 80th Session (2019) – 6 – the county of the principal place of business of the registrant or business entity, as applicable;

Any claimant may bring action against the registrant or business entity, as applicable, for the unpaid balance of aSec. claim.

Sec.

240A.030Sec. NR1.

4.

NRS 240A.030 is hereby amended to read as follows:

240A.030 1.

(a) For compensation and at the direction of a client, provides assistance to the client in a legal matter, including, withoutideswithout limitation:

(4) Submitting a completed document on behalf of the client to a courtco(5) Preparing or administrativeassisting agency;in the preparation of all or substantially all of a federal or state tax return or claim for a tax refund;

or (5) Preparing or assisting in the preparation of all or substantially all of a federal or state tax return or claim for a tax refund;

(a) A paralegal who performs one or more of the actions described in subsection 1 unless the paralegal works under the - *AB280_R1* – 7 – direction and supervision of an attorney authorized to practice law in this State;

and - 80th Session (2019) – 7 – (c) [An enrolled agent authorized to practice before] 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.

(1) Authorized to practice law in this State, or an employee of such an attorney who is paid directly by the attorney or law firm with whom the attorney is associated and who is acting in the course and scope of that employment.

(e) A nonprofit organization formed pursuant to title 7 of NRS which the Secretary of the Treasury has determined is a tax-exempt organization pursuant to 26 U.S.C.

§ 501(c) and which provides legal services to persons free of charge, or an employee of such an organization who is acting in the course and scope of thatfthat such an employment.

(f) A legal aid office or lawyer referral service operated, sponsored or approved by a duly accredited law school, a governmental entity, the State Bar of Nevada or any other bar association which is representative of the general bar of the geographical area in which the bar association exists, or an employee of such an office or service who is acting in the course and scope of that employment.

- *AB280_R1* – 8 – (i) A corporation, limited-liability company or other entity representing or acting for itself through an officer, manager, - 80th Session (2019) – 8 – member or employee of the entity, or any such officer, manager, member or employee who is acting in the course and scope of that employment.

(m) A person who holds a license, permit, certificate, registration or any other type of authorization required by chapter 645and oris 692Aacting within the scope of NRS,that orauthorization.t anythereto, regulation(n) adoptedA pursuantcollection thereto,agency andthat is actinglicensed withinpursuant theto scopechapter 649 of thatNRS. authorization.

(n) A collection agency that is licensed pursuant to chapter 649 of NRS.

(a) “Commercial registered agent” has the meaning ascribed to it in (b)NRS “Commercial77.040. wedding chapel” means a permanently affixed structure which operates a business principally for the performance of Sec.

5.s(b) aNRS“Commercial 240A.100wedding ischapel” herebymeans amendeda topermanently readaffixed asstructure follows:which operates a business principally for the performance of weddings and which is licensed for that purpose.

Sec.

5.

NRS 240A.100 is hereby amended to read as follows:

An applicant for registrationreg(a) mustA benatural [a]person; :

(a) A natural person;

- *AB280_R1*80th Session (2019) – 9 – (c) Whose appointment or registration as a notary public in this State or another state has been previously revoked or suspended for cause;

(1) Convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to, a crime involving theft, fraud or dishonesty;

and (b) A cash bond or surety bond meeting the requirements of NRS 240A.120 [.] or proof that the applicant is covered by a bond filed by a business entity pursuant to section 2 of this act.bondact. 4.

An4. applicant for registration must submit to the Secretary of has not had a certificate or license as a document preparation servicet revoked or suspended in this State or any other state or territory of the United States.

5.An applicant for registration must submit to the Secretary of State a declaration under penalty of perjury stating that the applicant has not had a certificate or license as a document preparation service revoked or suspended in this State or any other state or territory of the5.nitAfter the investigation of the history of the applicant is completed, the Secretary of State shall issue a certificate of registration if the applicant is qualified for registration and has complied with the requirements of this section.

After the investigation of the history of the applicant is completed, the Secretary of State shall issue a certificate of registration if the applicant is qualified for registration and has complied with the requirements of this section.

- *AB280_R1*80th Session (2019) – 10 – Sec.

(a)(b) A renewalcash feebond or surety bond meeting the requirements of $25;NRS 240A.120 [,] or proof that the applicant is covered by a bond filed by a business entity pursuant to section 2 of this act, unless the bond previously filed by the registrant remains on file and in effect.

and (b) A cash bond or surety bond meeting the requirements of NRS 240A.120 [,] or proof that the applicant is covered by a bond filed by a business entity pursuant to section 2 of this act, unless the bond previously filed by the registrant remains on file and in effect.

(b) Require a registrant to submit a complete set of fingerprints and written permission authorizing the Secretary of State to forward the fingerprints to the Central Repository for Nevada Records of InvestigationCriminal History for itssubmission report.on to the Federal Bureau of 4.Investigation for its report.

After4. any investigation of the history of a registrant is completed, unless the Secretary of State elects or is required to deny renewal pursuant to this section or NRS 240A.270, the Secretary of State shall renew the registration if the registrant is qualified for registration and has complied with the requirements of this section.

After any investigation of the history of a registrant is renewal pursuant to this section or NRS 240A.270, the Secretary ofdeny State shall renew the registration if the registrant is qualified for registration and has complied with the requirements of this section.

- 80th Session (2019) – 11 – (1) An act or omission of the registrant, or an agent or employee of the registrant, which violates a provision of this chapter or a regulation or order adopted or issued pursuant thereto;

- *AB280_R1* – 11 – (2) A wrongful failure or refusal by the registrant, or an agent or employee of the registrant, to provide services in accordance with a contract entered into pursuant to NRS 240A.190;

or (4) An act or omission of the registrant in violation of any other federal or state law for which the return of fees, an award of damages or the imposition of sanctions have been awarded by a court of competent jurisdiction in this State;

(c) The surety shall pay any final, nonappealable judgment of a court of this State that has jurisdiction, upon receipt of written notice that the judgment is final.

(e) If the penal sum of the bond is exhausted, the surety shall give written notice to the Secretary of State and the registrant within 30 days after its exhaustion.

Except as otherwise provided in this subsection, if a cash bond is filed pursuant to subsection 1, the Secretary of State may retain the bond until the expiration of 3 years after the date the - 80th Session (2019) – 12 – registrant has ceased to do business, or 3 years after the date of the expiration or revocation of the registration, to ensure that there are no outstanding claims against the bond.

A court of competent jurisdiction may order the return of the bond, or any part of the bond, at an earlier date upon evidence satisfactory to the court that - *AB280_R1* – 12 – there are no outstanding claims against the bond or that the part of the bond retained by the Secretary of State is sufficient to satisfy any outstanding claims.

5.law when the registrant is no longer covered by a bond or the penal sum of the bond is exhausted.

The registration of a registrant is suspended by operation of law when the registrant is no longer covered by a bond or the penal sum of the bond is exhausted.

In addition to any other requirements set forth in thi(a)this Achapter: [natural] person who applies for registration or the renewal of registration as a document preparation service pursuant to NRS the applicant in the application submitted to the Secretary of State.

of registration as a document preparation service pursuant to NRSewal 240A.100 or 240A.110 must include the social security number of the applicant in the application submitted to the Secretary of State.

- 80th Session (2019) – 13 – 3.

or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by - *AB280_R1* – 13 – the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

4.to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Secretary of State shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Secretary of State shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

[(b)] (2) A statement that the registrant has some special influence with or is able to obtain special treatment from the court or agency[(c)] with(3) whichA false or misleading statement to a documentclient if the registrant knows that the statement is tofalse beor filedmisleading or submitted;knows that the registrant lacks a sufficient basis for making the statement.

or[3. registrant knows that the statement is false or misleading or knows that the registrant lacks a sufficient basis for making the statement.

In] (c) Except as otherwise provided in subsection 3, in any advertisement or written description of the registrant or the services provided by the registrant, or on any letterhead or business card of the registrant, use the term “legal aid,” “legal services,” “law office,” “notario,” “notario publico,” “notary public,” “notary,” “paralegal,” “legal assistant,” “licensed,” “licenciado,” “attorney,” “lawyer” or any similar term, in English, Spanish or any other language, which implies that the registrant:

- 80th Session (2019) – 14 – [(a)] (1) Offers services without charge if the registrant does not do so;

[4.] (d) Represent himself or herself, orally or in writing, as a paralegal or legal assistant which implies that the registrant is acting under the direction and supervision of an attorney licensed to practicepra[5.ce lawNegotiate]s in this State.

-(e) *AB280_R1*Except –as 14otherwise –provided [5.in subsection 2, negotiate with another person concerning the rights or responsibilities of a client, communicate the position of a client to another person or convey the position of another person to a client.

Negotiate] (e) Except as otherwise provided in subsection 2, negotiate with another person concerning the rights or responsibilities of a client, communicate the position of a client to another person or convey the position of another person to a client.

Any such waiver is contrary to public policy and void.voi2.

2.The provisions of paragraphs (e), (f) and (g) of subsection do not apply to a registrant to the extent that compliance with such provisions would violate federal law.

The3. provisions of paragraphs (e), (f) and (g) of subsection 1 do not apply to a registrant to the extent that compliance with such provisions would violate federal law.

A registrant who is also a notary public appointed by the Secretary of State pursuant to chapter 240 of NRS and in good the standing with the Secretary of State may, in any advertisement or registrant,written usedescription of the termregistrant “notaryor public.”thethe services provided by the registrant, use the term “notary public.” Sec.

Except as otherwise provided in [subsection] - 80th Session (2019) – 15 – subsections 2 [,] and 3, a suspension or revocation may be imposed only after a hearing.

- *AB280_R1* – 15 – (b) The registrant may have his or her registration as a document preparation service reinstated by the Secretary of State if his or her registration as a document preparation service has not expired during the suspension upon a showing that his or her sus[2.suspension as a notary public has been lifted.

The]as[2. a notary public has been lifted.

The] 3.

Except as otherwise provided in subsection 2, the Secretary of State shall immediately revoke the registration of a registrant uponupo(a) theThe receiptentry of ana officialjudgment document or recordconviction; showing:

(a)orrd Theshowing: entry of a judgment or conviction;

or (b) The occurrence of any other event,  that would disqualify the registrant from registration pursuant to subsection 2 of NRS 240A.100.

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