Summary of Senate Bill 349 (2023 Legislative Session)

Senate Bill 349 (2023 Legislative Session) was passed and signed by the Governor and takes effect on July 1, 2023. The bill amends CHAPTER 240A - DOCUMENT PREPARATION SERVICES.

Senate Bill 349 (2023 Legislative Session) makes changes to NRS 240A Document Preparation Services effective July 1, 2023, as follows:

NRS482.160 DEPARTMENT OF MOTOR VEHICLES

Authorizes a document preparation service to use the name of the “Department of Motor Vehicles” or “DMV” in an advertisement under certain circumstances.

  • The term is followed by the term “services,” “registration services” or other similar language; and
  • The advertisement includes a clear and conspicuous statement:
    “THIS DOCUMENT PREPARATION SERVICE IS A THIRD-PARTY BUSINESS NOT AFFILIATED WITH THE NEVADA DEPARTMENT OF MOTOR VEHICLES”

NRS240A.100 DOCUMENT PREPARATION SERVICES - REGISTRATION

Requires a registrant to submit to the Secretary of State a request for an amended registration (within 30 days after making the change)

  • The Secretary of State may suspend the registration of a registrant who fails to provide to the Secretary of State a notice of a change in information

The bill also provides that it is unlawful for a person to:

  • 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, suspended or not in good standing.
  • Submit an application for registration as a document preparation service that contains a substantial and material misstatement or omission of fact.

Any person who violates a provision of this chapter is liable for a penalty of not more than $1,000 for each violation, plus reasonable investigative fees, and costs.

NRS240A.150 DOCUMENT PREPARATION SERVICES - ADVERTISING

Any advertisement for the services of a registrant which the registrant disseminates or causes to be disseminated, must include a statement.

  • The statement must be of a conspicuous size, if in writing, and must appear in substantially the following form: "I AM NOT AN ATTORNEY IN THE STATE OF NEVADA. I AM NOT AUTHORIZED TO GIVE LEGAL ADVICEOR LEGAL REPRESENTATION. I MAY NOT ACCEPT FEES FOR GIVING LEGAL ADVICE OR LEGALREPRESENTATION.”

A person shall not disseminate or cause to be disseminated any advertisement or other statement that he or she is engaged in the business of a document preparation service in this State unless they have complied with all the applicable requirements of this chapter.

  • If the Secretary of State finds a registrant in violation of the provisions of this section, the Secretaryof State 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.

NRS240A.240 DOCUMENT PREPARATION SERVICES – PROHIBITED ACTS

This bill sets forth certain penalties which may be imposed if the Secretary of State finds a person in violation of “prohibited acts” pursuant to the provisions of section NRS240A.240.

If the Secretary of State finds a registrant in violation of the provisions, the Secretary of State 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.

NRS240A.260 DOCUMENT PREPARATION SERVICES – INVESTIGATIONS

Provides that, if within a reasonable period of time, a registrant 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 of State may:

  • Suspend or refuse to renew the registration of the registrant

If, after investigation, the Secretary of State determines the registrant has committed the violation:

  • Revoke or suspend the registration of the registrant; or Impose a penalty of not more than $1,000for each violation

NRS240A.270 DOCUMENT PREPARATION SERVICES – REGISTRATION SUSPENSION,REVOCATION, REFUSAL TO RENEW

The Bill also authorizes the Secretary of State to suspend or revoke the registration of a registrant pending a hearing, if the Secretary of State believes it is in the public interest or is necessary to protect the public.

 PowerPoint Presentation on SB349 

This Bill becomes effective on July 1, 2023