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- NV Assembly Bill 74
LEGISLATION State: Nevada Signed: June 12, 2013 Effective: March 01, 2014 Chapter: 535 Summary AB 74 puts in place a statutory framework for the registration and oversight of persons, including Notaries Public, who provide document preparation services. These services are used by individuals who for cultural, financial and other reasons cannot or choose not to hire an attorney to help them with their legal needs. The new law is meant to legitimize the proper offering of such services and also provide protections for persons who are harmed by document preparation service professionals. Affects Amends Section 240.018 and adds as yet uncodified sections to the Nevada Revised Statutes Changes Defines “document preparation service” as any person who, for compensation and at the direction of a client, provides advice or assistance to the client in a legal matter, including, without limitation, preparing or completing a pleading or other document for the client, translating an answer to a question posed in such a document; securing any supporting document, such as a birth certificate, required in connection with the legal matter; or submitting a completed document on behalf of the client to a court or administrative agency. Lists persons who do not fall under the definition of engaging in document preparation services (e.g., an attorney, etc.). Defines “legal matter” to mean the preparation of any will or trust; any proceeding, filing or action affecting the immigration or citizenship status of a person and arising under immigration and naturalization law, an executive order or presidential proclamation, or an action of the United States Citizenship and Immigration Services of the Department of Homeland Security, the United States Department of State or the United States Department of Labor; or any proceeding, filing or action otherwise affecting the legal rights, duties, obligations or liabilities of a person. Provides that any person engaged in the business of providing document preparation services must register with the Secretary of State and provides requirements for registration. Requires a person registering to perform document preparation services to file a cash or surety bond in the amount of $50,000 with the Secretary of State and provides requirements for the surety bond. Sets certain procedures for advertising and establishing the relationship with a client for whom one performs document preparation services. Prohibits a person offering document preparation services from using 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, the term “legal aid,” “legal services,” “law office,” “notary public,” “notary,” “licensed,” “attorney,” “lawyer” or any similar term, in English or in any other language, which implies that the registrant: (a) offers services without charge if the registrant does not do so; or (b) is an attorney authorized to practice law in this State. Provides a list of prohibited acts for document preparation service professionals. Authorizes the Secretary of State to publish regulations governing document preparation services. Gives the Secretary investigative authority to investigate violations of the statutes governing document preparation services and provide the Secretary with means for redressing the violations. Classifies certain violations of the statutes governing document preparation services as crimes and establishes punishment for those crimes. Analysis AB 74 was introduced when the bill sponsor began to notice that a bulk of the calls coming into her office from constituents were complaints either about service received from attorneys or from legal document preparers. The document preparers were oftentimes Notaries or “Notarios Publico,” multi-servicios, and paralegals. These services advertise in all kinds of different ways and for all kinds of different services including divorces, immigration, bankruptcy, and others. They are registered agents who are creating limited-liability companies (LLCs) and doing business transactions. When transactions involving document preparation services went badly, the bill sponsor had nowhere to send constituents. She referred a case involving a gentleman to the Attorney General who used such services and paid over $60,000 to an organization that did absolutely nothing for him. However, it should be noted that businesses and individuals offering document preparation assistance services also fulfill a legitimate need, as many cannot afford to pay an attorney for legal services. AB 74 puts in place a statutory framework for the registration and oversight of such document preparation services. The states of California and Arizona have similar provisions. Read the bill text.
- NV Administrative Regulation R116-13
RULE/REGULATION State: Nevada Signed: March 28, 2014 Effective: March 28, 2014 Chapter: N/A Summary Administrative Regulation R116-13 touches on various matters related to Notary practice. A Notary may note that a signer was “personally known” in the journal if the Notary has personal knowledge of the signer. The regulation explains how the Secretary of State will interpret the phrase “secure location” in the statute related to storing a Notary’s stamp and journal and how the Secretary will deem a document that requires the signer to provide information within blank spaces to be filled out. The regulation provides rules for fingerprinting of Notary Public commission applicants and authorizes a fee to be charged for fingerprinting. The regulation provides rules for notarizing the signature of a person unable to sign and provides the wording for a certificate of acknowledgment to be used in the circumstance. The regulation provides rules for a Notary charging a fee to perform marriages. Finally, the regulation repeals rules related to certified court reporters. Affects Adds an as yet uncodified new sections to Chapter 240 of the Nevada Administrative Code Changes Provides that Notary may note that a signer was “personally known” in the Notary’s journal if the Notary has personal knowledge of the signer. Clarifies that the Secretary of State will interpret the phrase “secure location” related to storing a Notary’s stamp and journal to include, without limitation: (a) in the sole possession of the Notary; or (b) a locked location over which the Notary has sole control. Provides for the purposes of NRS 240.075(9), the Secretary will deem a document that requires the signer to provide information within blank spaces to be filled out completely if the signer: (a) provides information to complete each blank space; or (b) designates a blank space as not applicable or draws a line through the blank space if information to complete the blank space is not available. Provides that if a document contains any blank signature line that is designated for an additional signer but the remainder of the document, exclusive of any such blank signature line, satisfies the requirements of #3 above, the Secretary will deem the document to be filled out completely if it is clear that the notarization does not apply to any such blank signature line. Provides that an applicant for a Notary commission must submit a complete set of fingerprints and written permission authorizing the Secretary to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report and authorizes the Secretary to charge a fee in an amount equal to the sum of the amounts charged for processing the fingerprints. Requires a person who is physically unable to sign a document and directs a person other than a notarial officer to sign the person’s name on the document pursuant to NRS 240.1655 and the third party directed to sign the individual’s name to appear before the notarial officer at the time the document is signed. Provides the wording for the certificate of acknowledgment that is sufficient for a notarial officer notarizing the signature of a person unable to sign who directs a third party to sign. Provides that a Notary may only charge the fee set forth in NRS 240.100 for performing a marriage ceremony if the Notary possesses a valid certificate to perform marriages pursuant to NRS 122.064. Clarifies that a Notary who charges a fee for performing a marriage and does not have a valid certificate to perform marriages issued to the Notary may have his or her appointment as a Notary suspended or revoked by the Secretary in accordance with NRS 240.150. Repeals prior administrative regulation related to certified court reporters having limited notarial powers. Analysis The Nevada Revised Statutes give the Secretary of State authority to adopt regulations related to the appointment of Notaries Public (NRS 240.017). In 2011, legislation was enacted to require Notaries to submit fingerprints when qualifying for a commission, if the Secretary required them. With the new regulations effective March 28, 2014, the Secretary will be requiring fingerprints to be submitted. This new regulation also touches on various matters related to Notary practice. A Notary may note that a signer was “personally known” in the journal if the Notary has personal knowledge of the signer. The regulation explains how the Secretary of State will interpret the phrase “secure location” in the statute related to storing a Notary’s stamp and journal and how the Secretary will deem a document that requires the signer to provide information within blank spaces to be filled out. These interpretations will guide the Secretary in investigations and proceedings against Notaries who violate these provisions. The regulation provides rules for notarizing the signature of a person unable to sign – namely, that both the person who cannot sign and the third party signing for the person must be physically present before the Notary or notarial officer at the time the signature is made by the third party – and provides the wording for a certificate of acknowledgment to be used in the circumstance. The regulation provides rules for a Notary charging a fee to perform marriages, but only if the Notary possesses a valid certificate to perform marriages pursuant to NRS 122.064. Finally, the regulation repeals rules related to certified court reporters. Read the regulation text.
- NV Assembly Bill 128
LEGISLATION State: Nevada Signed: June 04, 2015 Effective: June 04, 2015 Chapter: 337 Summary Assembly Bill 128 creates a power of attorney for health care for persons with an intellectual disability, as defined. Affects Amends Chapter 162A of the Nevada Revised Statutes. Changes Allows an individual with an intellectual disability, as defined, to execute a power of attorney for health care. Defines "intellectual disability" as significantly subaverage general intellectual functioning existing concurrently with deficits in adaptive behavior and manifested during the developmental period. Requires a power of attorney for health care signed by a person with an intellectual disability to be acknowledged before a Notary or signed by two adult witnesses. Requires a Notary who notarizes a power of attorney for an individual with an intellectual disability to declare under penalty of perjury in the certificate of acknowledgment that the person whose name is ascribed to this instrument appears to be of sound mind and under no duress, fraud or undue influence. Sets forth examples of a form for a power of attorney for health care for adults with intellectual disabilities. Analysis Assembly Bill 128 creates a power of attorney for health care for persons with an intellectual disability, as defined. The power may be executed by being witnessed by two witnesses or by acknowledgment before a Notary or notarial officer. It is important to point out that although a person may have an intellectual disability, at the time the person acknowledges his or her signature to the Notary the person must appear to the Notary to be of sound mind and under no duress, fraud or undue influence. The Notary's certificate of acknowledgment requires the Notary to sign under penalty of perjury that this is so. Read the bill text.
- NV Senate Bill 401
LEGISLATION State: Nevada Signed: June 09, 2015 Effective: June 09, 2015 Chapter: 449 Summary Senate Bill 401 adds additional advertising restrictions for Notaries who are not attorneys and for document preparation service registrants (who are often also Notaries), requires applicants for a Notary commission or registration as a document preparation service provider to make an additional declaration when applying for a Notary commission or registration as a document preparation service provider, and clarifies that any consumer member of the public may file a complaint against Notaries or document preparation service providers who violate the laws applicable to Notaries and document preparation service providers. Affects Amends Sections 240.010, 240.030, 240.085, 240A.100, 240A.240, 240A.240, and 240A.260 of the Nevada Revised Statutes. Changes Prohibits Notaries who are not attorneys from using of the term "licenciado" or any other equivalent non-English term in any form of communication that advertises his or her services as a Notary, including, without limitation, a business card, stationery, notice and sign. (Note: this provision takes effect October 1, 2015). Prohibits a registrant performing document preparation services from using the terms "notario," "notario publico," and "licenciado" or similar term in English, Spanish or any other language which would imply the registrant offers services without charge if the registrant does not do so or is not an attorney authorized to practice law in Nevada. (Note: This provision takes effect October 1, 2015). Provides it is unlawful for a person to violate any provision of Chapter 240, NRS, including, without limitation, the provisions of NRS 240.085. Provides that any person who is aware of a violation of Chapter 240, NRS, by a Notary or a person applying for appointment as a Notary, or a violation of Chapter 240A, NRS, by a document preparation services registrant or a person applying for registration as a document preparation services, may file a complaint with the Secretary of State setting forth the details of the violation that are known by the person who is filing the complaint. Requires an applicant for a Notary commission and a registrant for a license to perform document preparation services to submit to the Secretary of State a declaration under penalty of perjury stating that the person has not had an appointment as a Notary (or registration to perform document preparation services) revoked or suspended in Nevada or any other state or territory of the United States. Analysis Senate Bill 401 authorizes any person who is aware of a violation of existing law governing Notaries and document preparation services to file a complaint with the Secretary of State. SB 401 also requires an applicant for appointment as a Notary or registration as a document preparation service to provide with his or her application a declaration under penalty of perjury stating that the applicant has never had an appointment as a Notary public, or certificate or license as a document preparation service, as applicable, revoked or suspended in Nevada or any other state or territory. SB 401 adds the term “licenciado” to the list of terms prohibited to be used in an advertisement if a Notary is not also an attorney licensed in Nevada, and similarly prohibits document preparation services from using terms that may mislead a consumer into believing that a document preparation service is a licensed attorney, if such is not the case. Read the bill text.
- NV Assembly Bill 65
LEGISLATION State: Nevada Signed: May 27, 2015 Effective: July 01, 2015 Chapter: 199 Summary AB 65 amends the laws related to Notaries Public, documentation preparation services and the issuance of authentications by the Secretary of State. Affects Amends Sections 240.010, 240.015, 240.018, 240.075, 240.085, 240.150, 240.1657, 240.195, 240A.030, 240A.100, 240A.110, 225.083, and adds a new as yet uncodified section to Chapter 240A of the Nevada Revised Statutes Changes Notary Public Provisions Clarifies that convictions prohibiting a person from appointment as a Notary include a conviction that follows a plea of nolo contendere or no contest. Prohibits the Secretary of State from appointing a person as a Notary public whose previous appointment as a Notary public in Nevada or another state has been revoked for cause. Expands prohibition against a person representing him- or herself as a Notary if the person has not been appointed as a Notary to include those persons whose appointment has expired or been suspended or revoked, and provides a civil penalty for such a violation. Shortens the mandatory course required to become a Notary from 4 hours to 3 hours and requires an examination, Requires a person renewing his or her appointment as a Notary to retake the mandatory education course. Allows the Secretary of State to require a Notary who has violated any provision of chapter 240 of NRS to retake the mandatory education course. Authorizes the Secretary of State to use an outside vendor to administer the course and examination. Makes similar conforming changes to the mandatory course and examination requirements for an electronic Notary. Prohibits a notary public from affixing his or her stamp to any document which does not contain a notarial certificate. Extends this prohibition against use of the term “notario” or “notario publico” in any signage or advertisement by a Notary who is not also an attorney licensed to practice law in Nevada to the employers of notaries public, and requires the imposition of a civil penalty for violating such a prohibition. Documentation Preparation Service Provisions Allows a person who holds employment authorization from the United States Citizenship and Immigration Services to register as a documentation preparation service. Provides that an application for registration as a documentation preparation service that is not completed within 6 months must be denied. Prohibits the Secretary of State from registering as a document preparation service any person whose previous registration as a document preparation service in this State or another state has been revoked for cause. Clarifies which nonprofit organizations are not required to register as a documentation preparation service and adds collection agencies to the list of such persons. Repeals the existing requirement that a document prepared by a documentation preparation service must include the name, address, phone number and registration number of the document preparation service, but requires a document preparation service to provide this information on any document on which the information is requested. Authorizes the Secretary of State to inspect the documents required to be maintained by document preparation services to ensure compliance with the law. Provisions Related to Authentications and Document Filings Requires a request for authentication to include a statement signed under penalty of perjury that the document will not be used to: (1) harass a person; or (2) accomplish any fraudulent, criminal or other unlawful purpose. Prohibits bringing a civil action against the Secretary of State on the basis that: (1) the Secretary of State has issued an authentication; and (2) the document has been used to harass a person or accomplish any fraudulent, criminal or other unlawful purpose. Provides that a person who uses a document for which an authentication has been issued by the Secretary of State for such unlawful purposes is guilty of a category C felony. Authorizes the Secretary of State also to adopt regulations prescribing procedures to prevent the filing of documents in his or her office that: (1) are fraudulent; (2) contain a false statement of material fact; or (3) are filed for the purpose of harassing or defrauding a person. Analysis Assembly Bill 65 revises several laws related to Notaries and documentation preparation services, and the filing of documents with the Secretary of State's office. The Notary provisions comprise the substantive portion of the new law. Most notable new provisions are the scaling back of the mandatory education course from 4 to 3 hours, requiring Notaries renewing their appointments to take the course and adding a mandatory examination to the course requirement. Notable also are provisions prohibiting a Notary from affixing a Notary seal to a document that does not contain a notarial certificate and applying the very same penalties against Notaries who are not attorneys for use of the term “notario” or “notario publico” to their employers as well. Since the Secretary of State's office registers documentation preparation services, low-cost legal services provided by persons who are not attorneys to consumers at their specific direction, and also since many persons providing these services are Notaries, we inlcude the provisions of AB 65 that relate to these services. Finally, AB 65 also reforms the law related to authentications of notarized documents issued by the Secretary of State's office. Read the bill text.
- NV Senate Bill 446
LEGISLATION State: Nevada Signed: June 10, 2015 Effective: October 01, 2015 Chapter: 514 Summary Senate Bill clarifies that if a notarial officer signing a certificate is a Notary Public, the Notary must sign with the name as on file with the Secretary of State. Affects Amends Nevada Revised Statutes Section 240.1655 Changes Clarifies that if a notarial officer signing a certificate is a Notary Public, the Notary must sign with the name as on file with the Secretary of State. Analysis Senate Bill 446 clarifies that if a notarial officer signing a certificate is a Notary Public, the Notary must sign with the name as on file with the Secretary of State. Previously, the provision applied to any notarial officer. In Nevada, that could be a judge, clerk, or deputy clerk of a court, or a justice of the peace. Now, the provision applies only to Notaries Public. Read the bill text.
- NV Senate Bill 50
LEGISLATION State: Nevada Signed: May 26, 2017 Effective: May 26, 2017 Chapter: 154 Summary Senate Bill 50 creates an advance directive for psychiatric care requiring the signatures of the principal and witnesses to be sworn to and signed before a Notary. Affects Amends Chapter 449 of the Nevada Revised Statutes Changes Authorizes a person of sound mind and 18 or more years of age to execute an advance directive for psychiatric care directing any provider of health care or an agent of the person's choice on how he or she wishes psychiatric care to be provided in the event that he or she is incapable of making decisions concerning such care or communicating such decisions. Requires the principal and witnesses' signatures on the advance directive for psychiatric care to be notarized. Provides a statutory form, including the notarial certificate, for an advance directive for psychiatric care. Analysis More and more states are enacting specific power of attorney and advance health care directive laws allowing individuals to create a specific power of attorney or directive for psychiatric care. Senate Bill 50 enacts such a provision in Nevada. Read the bill text.
- NV Senate Bill 398
LEGISLATION State: Nevada Signed: June 05, 2017 Effective: June 05, 2017 Chapter: 391 Summary Senate Bill 398 defines "blockchain" technology and clarifies that it is an electronic record under the Uniform Electronic Transactions Act (UETA). Affects Adds a new as yet uncodified section to Chapter 719 of the Nevada Revised Statutes, and amends Sections 719.020 and 719.090. Changes Defines "blockchain" as an electronic record of transactions or other data which is: (a) uniformly ordered; (b) redundantly maintained or processed by one or more computers or machines to guarantee the consistency or nonrepudiation of the recorded transactions or other data; and (c) validated by the use of cryptography. Recognizes "blockchain" technology as a type of electronic record under the Uniform Electronic Transactions Act. Analysis "Blockchain" technology has been around for about a decade or so and is the technology behind "bitcoin," a form of digital currency. In the hearing on the bill before the Nevada Senate Judiciary Committee, Don Tapscott,, author of Blockchain Revolution, was quoted with this description of the blockchain. "The blockchain is basically a distributed database. Think of a giant, global spreadsheet that runs on millions and millions of computers. It’s distributed. It’s open source, so anyone can ... see what’s going on. It’s truly peer to peer; it doesn’t require powerful intermediaries to authenticate or to settle transactions. ... [The blockchain is] an immutable, unhackable distributed database of digital assets. This is a platform for truth, and it’s a platform for trust. The implications are staggering, not just for the financial-services industry but also right across virtually every aspect of society." Supporters of the bill wanted to legitimize blockchain technology by its specific mentioning in the statute. The NNA wonders why there is a need for bills like this, because blockchain records already meet the definition of "electronic record" under the Uniform Electronic Transactions Act. Read the bill text. The blockchain is basically a distributed database. Think of a giant, global s preadsheet that runs on millions and millions of computers. It’s distributed. It’s open source, so anyone can ... see what’s going on. It’s truly peer to peer; it doesn’t require powerful intermediaries to authenticate or to settle transactions. ... [The
- NV Assembly Bill 476
LEGISLATION State: Nevada Signed: May 08, 2017 Effective: July 01, 2017 Chapter: 15 Summary Assembly Bill 476 makes several changes to Nevada's electronic notarization statutes. Affects Amends Sections 240.020, 240.033, 240.185, 240.196 and 204.205 and repeals section 240.193 of the Nevada Revised Statutes. Changes Clarifies that an appointment as an electronic Notary does not authorize the electronic Notary to perform notarial acts in another state. Authorizes an electronic Notary to certify a true and correct copy. Requires that the bond filed by an electronic Notary to provide indemnification to a person determined to have suffered damage as a result of the electronic Notary ’s violation of the statutes governing electronic Notaries, in addition to those statutes governing Notaries generally. Requires a request for authentication of an electronic notarial act to include a statement signed under penalty of perjury that the document will not be used to (1) harass a person; or (2) accomplish any fraudulent, criminal or other unlawful purpose. Prohibits the bringing of a civil action against the Secretary of State on the basis that (1) the Secretary of State has issued such an authentication; and (2) the document has been used to harass a person or accomplish any fraudulent, criminal or unlawful purpose. Provides that a person who uses a document for which an authentication has been issued for an unlawful purpose is guilty of a category C felony. Analysis Assembly Bill 476 changes Nevada's Electronic Notarization Authentication Act in several respects. Now, a commission as an electronic Notary does not authorize the electronic Notary to perform notarial acts in other states, no doubt a reaction to the Virginia law allowing electronic Notaries to notarize anywhere in the world. The bond of a Notary must indemnify persons for electronic notarial acts in addition to regular notarial acts. Sureties may be required to revise their existing bond forms to accommodate this change. AB 476 also contains reforms related to requests for and the issuance of authentications and apostilles. Note: After AB 476 was enacted, AB 413 amended Sections 4, 5, 6, 8, and 9 by deleting them. This New Law Update has been revised to reflect these later amendments. Read the bill text. Download PDF
- NV Assembly Bill 148
LEGISLATION State: Nevada Signed: June 01, 2017 Effective: October 01, 2017 Chapter: 284 Summary Assembly Bill 148 increases penalties for certain offenses by Notaries and document preparation services. Affects Adds a new section to Chapter 240 and amends Sections 244.001, 240.085, 240.1456, 240.155, 240A.100, 240A-290 of the Nevada Revised Statutes. Changes Increases the criminal penalty to a category D felony for any Notary who violates the provisions related to advertising and use of “Notario” in NRS 240.085 (1) and (2). Provides that a person who willfully violates a provision of NRS 240.001 to 240.169, or a regulation or order adopted or issued for these statutes, is guilty of a category D felony and shall be punished as provided in NRS 193.130 if the offense results in irreparable harm to a person. Clarifies that unless a greater penalty is provided under the new statute in NRS 240 (#2 above), a Notary who is found guilty in a criminal prosecution of violating NRS 240.085(1) and (2) shall be punished by a fine of not more than $2,000. Clarifies that unless a greater penalty is provided under the new statute in NRS 240 (#2 above), an employer of a Notary who is found guilty in a criminal prosecution of violating NRS 240.085(5) shall be punished by a fine of not more than $2,000. Clarifies that unless a greater penalty is provided under the new statute in NRS 240 (#2 above), any person who is violates NRS 240.145(1) is guilty of a gross misdemeanor. Clarifies that unless a greater penalty is provided under the new statute in NRS 240 (#2 above), any person who is violates NRS 240.155(1) or aids and abets a Notary to commit a violation of NRS 240.155(1) is guilty of a gross misdemeanor. Prohibits the Secretary of State from registering as a document preparation service any person who has previously been convicted of, or entered a plea of guilty, guilty but mentally ill or nolo contendere to a category D felony pursuant to NRS 240A.290. Provides that a person who willfully violates a provision of NRS Chapter 240A, or a regulation or order adopted or issued for these statutes, is guilty of a category D felony and shall be punished as provided in NRS 193.130 if the offense results in irreparable harm to a person. Provides for the payment of restitution to persons injured by certain violations by document preparation services. Makes conforming changes. Analysis Assembly Bill 148 toughens several penalties in the statutes governing Notaries and document preparation services. The tougher penalties for Notaries and employers of Notaries are in those sections of the law dealing with advertising Notary services in a foreign language and use of prohibited terms such as "notario." Additionally, the greater category D felony applies to a Notary who willfully notarizes the signature of any person who is not in the presence of the Notary and is not properly identified by the Notary. The category D penalty for document preparation services, which are essentially individuals or businesses that provide non-legal services to the public, covers any violation in Chapter 240A. Read the bill text.
- NV Assembly Bill 413
LEGISLATION State: Nevada Signed: June 09, 2017 Effective: July 01, 2018 Chapter: 511 Summary AB 413 enacts the most substantive online electronic notarization law of any state to date that also includes provisions allowing electronic Notary to notarize electronic wills and other estate-related records. Affects Adds as yet uncodified sections to Nevada Revised Statutes (NRS) Chapters 132, 133 163 and 240, amends NRS Sections 132.025, 132.119, 133.050, 133.085, 133.120, 136.185, 163.0016, 163.0018, 163.00185, 163.0095, 240.181, 240.182, 240.185, 240.186, 240.187, 240.189, 240.191, 240.192, 240.194, 240.195, 240.196, 240.197, 240.198, 240.199, 240.201, 240.202, 240.203, 240.204, 719.200, and repeals NRS Section 240.193 Changes Definitions Defines “audio-video communication” as communication by which a person is able to see, hear and communicate with another person in real time using electronic means. Defines “credential” as a tangible record evidencing the identity of a person. Defines “credential analysis” as process or service that complies with any rules or regulations adopted by the Secretary of State through which a third party affirms the validity of a government-issued identification credential or any data thereon through the review of data sources. Defines “remote presentation” as the transmission of a quality image of a government-issued identification credential to an Electronic Notary through communication technology for the purpose of enabling the Electronic Notary to identify the person appearing before the electronic Notary and to perform a credential analysis. Defines “dynamic knowledge-based authentication assessment” as an identity assessment that is based on a set of questions formulated from public or private data sources for which the person taking the assessment has not previously provided an answer and that meets any rules or regulations adopted by the Secretary of State. Defines “in the presence of” or “appear before” means being: (a) in the same physical location as another person and close enough to see, hear, communicate with and exchange credentials with that person; or (b) in a different physical location from another person but able to see, hear and communicate with the person by means of audio-video communication that meets any rules or regulations adopted by the Secretary of State. Use of Audio-Video Communication Authorizes an Electronic Notary to perform any of the acts set forth in NRS 240.196 using audio-video communication in accordance with NRS 240.181 to 240.206, inclusive, and sections 30 to 38.7, inclusive, of AB 413 and any rules or regulations adopted by the Secretary of State. Provides that if an electronic notarial act is performed using audio-video communication: (a) the technology used must allow the persons communicating to see and speak to each other simultaneously; (b) the signal transmission must be in real time; and (c) the electronic notarial act must be recorded in accordance with section 37 of AB 413. Provides that an Electronic Notary may perform an electronic notarial act using audio-video communication in accordance with NRS 240.181 to 240.206, inclusive, and sections 30 to 38.7, inclusive, of AB 413 and any rules or regulations adopted by the Secretary of State for a person who is physically located: (a) in Nevada; (b) outside Nevada but within the United States; or (c) outside the United States if certain requirements are met. Provides that for an Electronic Notary to perform an electronic notarial act for a person located outside of the United States: (a) the Electronic Notary must have no actual knowledge of the electronic notarial act being prohibited in the jurisdiction in which the person is physically located; and (b) the person placing his or her electronic signature on the electronic document must confirm to the Electronic Notary that the requested electronic notarial act and the electronic document: (i) are part of or pertain to a matter that is to be filed with or is currently before a court, governmental entity or other entity in the United States; (ii) relate to property located in the United States; or (iii) relate to a transaction substantially connected to the United States. Provides that an Electronic Notary who performs an electronic notarial act performed by means of audio-video communication has satisfactory or documentary evidence of the identity of the person if the Electronic Notary confirms the identity of the person by: (a) personal knowledge; (b) each of the following: (i) remote presentation by the person of a government-issued identification credential that contains a photograph and the signature of the person; (ii) credential analysis of the government-issued identification credential and the data thereon; and (iii) a dynamic knowledge-based authentication assessment; (c) any other method that complies with any rules or regulations adopted by the Secretary of State; or (d) a valid digital certificate pursuant to NRS 720.030 that complies with any rules or regulations adopted by the Secretary of State. Clarifies that an Electronic Notary who performs an electronic notarial act by means of audio-video communication must be located within Nevada at the time of the electronic notarial act. Clarifies that the validity of an electronic notarial act performed by a Nevada electronic Notary by means of audio-video communication will be determined by applying Nevada law. Clarifies that a notarial act performed by an Electronic Notary in Nevada for a person located outside of Nevada by means of audio-video communication shall not be deemed to be performed outside of Nevada. Recording of Audio-Video Communication Requires an Electronic Notary to arrange for a recording of each electronic notarial act performed using audio-video communication. Requires an Electronic Notary, before performing any electronic notarial act using audio-video communication, to inform all participating persons that the electronic notarization will be electronically recorded. Requires an Electronic Notary to note the means of identification used to identify the signer of an electronic notarial act performed by means of audio-video communication in the recording for the electronic notarial act as follows: (a) if by personal knowledge, the recording of the electronic notarial act must include an explanation by the Electronic Notary as to how he or she knows the person and how long he or she has known the person; (b) if by a credible witness: (i) the witness must appear before the Electronic Notary; and (ii) the recording of the electronic notarial act must include a statement by the Electronic Notary as to whether he or she identified the credible witness by personal knowledge or satisfactory evidence; and an explanation by the credible witness as to how he or she knows the person for whom the electronic notarial act is being performed and how long he or she has known the person. Requires an Electronic Notary to keep the recording of an electronic notarial act performed by means of audio-video communication for a period of not less than 7 years, regardless of whether the electronic notarial act was actually completed. Electronic Journal Clarifies that an Electronic Notary must keep an electronic journal of each electronic notarial act which includes the requirements of NRS 240.120(1) through (5), except that the journal is not required to include the electronic signatures of the person for whom the electronic act was performed and any witnesses. Requires an Electronic Notary who performs electronic notarial acts to: (a) describe each electronic notarial act in the electronic journal and specify whether the electronic notarial act was performed using audio-video communication; (b) maintain and protect the electronic journal at all times under his or her sole control; and (c) provide for lawful inspection and copying of the electronic journal. Clarifies that an Electronic Notary may maintain more than one electronic journal to record electronic notarial acts. Clarifies that the fact that the employer or contractor of an Electronic Notary keeps a record of electronic notarial acts does not relieve the Electronic Notary of the duty to keep an electronic journal or any duty required under NRS 240.201. Requires an electronic journal to: (a) enable access by a password or other secure means of authentication; and (b) be capable of providing tangible or electronic copies of any entry. Clarifies that upon surrender, revocation or expiration of a registration as an Electronic Notary, all notarial records required pursuant to NRS 240.001 to 240.206, inclusive, and sections 30 to 38.7, inclusive, of AB 413, except as otherwise provided by law, be kept by the electronic Notary for a period of 7 years after the termination of the registration of the electronic Notary. Registration as Electronic Notary Provides that before an Electronic Notary performs electronic notarial acts using audio-video communication, he or she must register with the Secretary of State pursuant to NRS 240.192 and identify the technology that he or she intends to use, which must conform to any rules or regulations adopted by the Secretary of State. Requires a Notary who registers with the Secretary of State as an Electronic Notary for the first time must successfully complete any required course of study on electronic notarization required pursuant to NRS 240.195 before filing such registration with the Secretary of State. Allows a Notary to register with the Secretary of State as an Electronic Notary and thereafter perform the functions of an Electronic Notary without completing any course of study on electronic notarization required pursuant to NRS 240.195 if, at the time of registration, the course of study is not yet offered by the Secretary of State or a vendor approved by the Secretary of State. Provides that if a Notary registers and performs the functions of an Electronic Notary without first completing any required course of study on electronic notarization, he or she must complete the required course of study and pass any required examination within 120 days after the course of study is first offered by the Secretary of State or a vendor approved by the Secretary of State; and further provides that the registrant shall thereafter complete any required course of study in accordance with NRS 240.195(3)(b) and (c), as applicable. Clarifies that an Electronic Notary “registers” with the Secretary of State and is not “appointed.” Clarifies that at the time of registration as an Electronic Notary, a registrant must be a notarial officer in Nevada who has complied with the requirements related to taking an oath and filing a Notary bond set forth in NRS 240.030 and 240.033. Clarifies that the $50 registration fee to become an Electronic Notary is distinct from the application fee required by NRS 240.030 to become a Notary. No longer requires a separate $10,000 bond as an Electronic Notary. Requires the registration as an Electronic Notary to be submitted by electronic mail to nvnotary@sos.nv.gov or to another email address as designated by the Secretary of State, unless the Secretary establishes a different process for receiving registrations. Requires the registration as an Electronic Notary to include all information required to be included in an application for a Notary commission under NRS 240.030. Provides that unless the Secretary of State establishes a different process for the payment of the registration fee as an Electronic Notary, the registration fee must be paid by check or draft, made payable to the Secretary of State and transmitted to the Office of the Secretary of State. Clarifies that registration as an Electronic Notary shall be deemed effective upon the payment of the registration fee if the registrant has satisfied all other applicable requirements. Clarifies that the period of registration as an Electronic Notary is no longer 2 years for an initial registration, but is coterminous with the Electronic Notary’s term of appointment as a Notary. Requires renewal registration as an Electronic Notary to be made at the same time a person renews his or her Notary appointment. Provides that in addition to any courses of study a Notary is required to complete under NRS 240.018, the Secretary of State may, by rule or regulation, require a Notary who registers with the Secretary of State as an Electronic Notary under NRS 240.192 to complete an additional course of study on electronic notarization. Requires the course of study for Electronic Notaries to be taken online and be not more than 3 hours, including instruction and completion of an examination of course content. Fees for Electronic Notarizations Increases the fee an Electronic Notary may charge from $10 to $25. Authorizes an Electronic Notary to charge a reasonable fee to recover any cost of providing a copy of an entry or a recording of an audio-video communication in an electronic journal. Provides that an Electronic Notary who is an officer or employee of Nevada or a local government shall not charge a fee for an electronic notarial act that the Electronic Notary performs within the scope of such employment. Clarifies that NRS 240.197 (the fee section) does not apply to any compensation for services provided by an Electronic Notary which do not constitute electronic notarial acts or comply with the other requirements of NRS Chapter 240. Electronic Wills Modifies the Uniform Electronic Transactions Act (NRS 719.200) to allow for electronic signatures in creating and executing wills, codicils and testamentary trusts. Defines “audio-video communication” and states that a person shall be deemed to be in the presence of or appearing before another person if such persons are in: (a) the same physical location; or (b) different physical locations but can communicate with each other by means of audio-video communication. Defines “electronic will” as a will of a testator that is created and maintained in an electronic record, and contains the date and electronic signature of the testator, and which includes at least one of the following: (a) an authentication characteristic of the testator; (b) the electronic signature and electronic seal of an Electronic Notary, placed on the will in the presence of the testator and in whose presence the testator placed his or her electronic signature; or (c) The electronic signatures of two or more attesting witnesses, placed on the will in the presence of the testator and in whose presence the testator placed his or her electronic signature. Authorizes an Electronic Notary to notarize the signature or electronic signature of a person who is not in the physical presence of the Electronic Notary in any proceeding relating to an electronic will. Authorizes an Electronic Notary to notarize any document relating to a will, codicil or testamentary trust in any proceeding relating to an electronic will. Provides for the self-proving of electronic wills. Provides that if a testator or a witness signing an affidavit or declaration described in NRS 133.050(1) appears by means of audio-video communication, the form for the affidavit or declaration, as set forth in subsections 2 and 3, respectively, must be modified to indicate that fact. Provides for the purposes of a declaration or affidavit made by an attesting witness as described in NRS 133.050, for all purposes relating to the execution and filing of any document with the court in any proceeding relating to an electronic will and for purposes of executing a power of attorney pursuant to NRS 162A.220, an advance directive or any document relating to an advance directive, an Electronic Notary may electronically notarize electronic documents, including without limitation, documents constituting or relating to an electronic will in accordance with NRS 240.181 through 240.206, and uncodified sections 30-38.7 of AB 413. Provides that a document shall be deemed to be executed in Nevada and will be governed by the laws of Nevada and subject to the jurisdiction of the courts of Nevada if any attesting witnesses or an Electronic Notary whose electronic signatures are contained in the document were physically located within Nevada at the time the document was executed. Provides that subject to the provision of any applicable court rules, a video recording or other electronic record may be admissible as evidence of (a) the proper execution of a trust; (b) the intentions of a settlor; (c) the mental state or capacity of a settlor; (d) the authenticity of a trust or (e) matters that are determined by a court to be relevant to the administration of a trust. Clarifies that the validity of a notarial act performed by an Electronic Notary must be determined by applying the laws of the jurisdiction in which the Electronic Notary is commissioned or appointed. Miscellaneous Expands the definition of “electronic notarial act” to include certifying a true and correct copy and performing such other duties as prescribed by law. Requires a certificate for an electronic notarial act performed using audio-video communication to include language explicitly stating that the notarial act was performed using audio-video communication. Requires an Electronic Notary to use technology to make the electronic document tamper-evident upon completion of the electronic notarial act. Requires an Electronic Notary within 10 days after discovering that his or her electronic signature or electronic seal has been stolen, lost, damaged or otherwise rendered incapable of affixing a legible image, to notify the Secretary of State and the entity from which the Electronic Notary obtained the electronic signature or electronic seal in writing, including, without limitation, a signature using the name under which the Electronic Notary is registered. Requires an Electronic Notary, upon learning that the technology or device used to create his or her electronic signature has been rendered ineffective or insecure, to cease performing electronic notarial acts until: (a) a new technology or device is acquired; and (b) the Electronic Notary sends an electronic notice to the Secretary of State that includes the electronic signature of the Electronic Notary required under NRS 240.192(2)(c) relating to the new technology or device. Renames the “Electronic Notary Public Authorization Act” as “the Electronic Notarization Enabling Act.” Makes conforming changes. Repealers Repeals Section 4 of Assembly Bill 476. Repeals Section 5 of Assembly Bill 476. Repeals Section 6 of Assembly Bill 476. Repeals Section 8 of Assembly Bill 476. Repeals Section 9 of Assembly Bill 476. Effective Date Sets July 1, 2017 as the effective date for Sections 1-28 of AB 413 (provisions dealing with electronic wills and trusts) and Section 61 (provision stating the provisions of AB 413 are intended to supersede any provisions of AB 476 (see New Law Update) that conflict with AB 413). Provides that Sections 29-55 and 62 (provisions related to NRS Chapter 240) are effective (a) upon passage and approval for the purpose of adopting any rules and regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and (b) on July 1, 2018, for all other purposes. Provides that Sections 56-60 of AB 413 (Sections 5, 6, 8 and 9 of AB 476 passed during the current legislative session) take effect immediately upon enactment. Analysis AB 413 enacts the most substantive “remote” electronic notarization laws of any state to date. The bill was subject to an intense back-and-forth between both chambers of the Nevada Legislature in the days just before the deadline for adjournment. AB 413 is also the first substantive law enacted in 2017 on electronic last wills (note: as of the date of enactment, Florida HB 277 was awaiting the Governor’s signature). Unlike the Florida bill, which only modified the Florida Statutes Estates and Trusts title, AB 413 amends Nevada’s Notary statutes with exhaustive provisions regulating remote electronic notarial acts. AB 413’s remote provisions are based in part on the NNA’s Model Electronic Notarization Act, released in January, 2017. Note: AB 413 also repeals several sections of Assembly Bill 476, which was passed by the Legislature prior to the enactment of AB 413. Most of the repealed provisions are included in AB 476. The effect of the repealers is to delay their implementation until July 1, 2018 instead of on July 1, 2017 when AB 476 took effect.
- NV Senate Bill 349
NV Senate Bill 349 LEGISLATIONState: 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 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. 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. 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.” 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. 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 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. 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. 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 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. 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. 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. 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. 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. 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. 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. 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 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. 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. 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 the text of Senate Bill 349.