Existing law authorizes the Secretary of State to adopt regulations: (1) prescribing the procedure for the appointment and mandatory training of a notary public; and (2) establishing procedures for the notarization of digital and electronic signatures. (NRS 240.017) Section 2 of this bill additionally authorizes the Secretary of State to adopt regulations establishing a code of professional responsibility for notaries public. Section 4 of this bill authorizes the Secretary of State to impose certain sanctions against a notary public who violates any regulation adopted pursuant to the provisions of existing law governing notaries public, including, without limitation, any code of professional responsibility adopted pursuant to section 2. In addition, under existing law, a person who willfully violates such a code would be guilty of a category D felony if irreparable harm results. (NRS 240.175) Existing law prohibits certain acts by a notary public. (NRS 240.075) Section 3 of this bill additionally prohibits a notary public from performing a notarial act if the notary public has reason to believe that the person whose signature is to be acknowledged, sworn to or witnessed or attested does not know or understand the act he or she is performing or the effect of that act. Under existing law, a person who violates that prohibition would be subject to administrative sanctions. Under existing law, if a person willfully violates that prohibition and irreparable harm results, the person would be guilty of a category D felony. (NRS 240.175) Existing law authorizes an electronic notary public to perform electronic notarial acts using audio-video communication if the electronic notary public is physically present in the State. (NRS 240.198, 240.1993) Section 5 of this bill clarifies that an electronic notary public is prohibited from performing an electronic notarial act unless he or she is present in the State. Under existing law, the Secretary of State would be authorized to impose sanctions against a notary public who violates the provisions of section 5. (NRS 240.150) Existing law generally requires a person who is registered to provide document preparation services to file with the Secretary of State a cash bond or surety bond to indemnify persons injured by certain acts or omissions by the registrant. (NRS 240A.120) However, existing law: (1) authorizes a business entity that has one or more employees who perform document preparation services to file such a bond on behalf of all such employees; and (2) exempts the employees of a business entity that files such a bond from the requirement to file their own bonds. (NRS 240A.123) Section 8 of this bill requires each registrant who files a bond on behalf of himself or herself to file a separate bond for each entity under which he or she performs document preparation services, thereby prohibiting such a registrant from performing document preparation services for multiple entities under one bond. Section 9 of this bill removes the discretion for a business entity that employs one or more persons who provide document preparation services to not file a cash or surety bond on behalf of such employees if each employee instead files such a bond on his or her own behalf. Section 9 thereby requires each such business entity to file such a bond on behalf of its employees, who provide document preparation services. Sections 6 and 7 of this bill require an applicant for the issuance or renewal of registration as a document preparation service to provide: (1) a list of each entity under which the applicant intends to provide document preparation services; and (2) for each such entity, proof that the required bond has been filed. Section 10 of this bill prohibits a registrant from engaging in the business of a document preparation service for any entity for which a bond has not been filed. Under existing law, a registrant who violates that prohibition would be subject to certain administrative sanctions. (NRS 240A.270) Additionally, a registrant who willfully violates that prohibition or a business entity that willfully fails to file a bond where required by section 9 is subject to certain criminal penalties. (NRS 240A.290) Existing law authorizes the Secretary of State to conduct or cause to be conducted an investigation if the Secretary of State obtains information that a provision of law, regulation or order relating to document preparation services has been violated. (NRS 240A.260) Sections 1 and 11 of this bill make information and documents obtained by or filed with the Secretary of State in connection with an investigation confidential.

Statutes affected:
As Introduced: 239.010, 240.017, 240.075, 240.150, 240.1993, 240A.100, 240A.110, 240A.120, 240A.123, 240A.240, 240A.260
BDR: 239.010, 240.017, 240.075, 240.150, 240.1993, 240A.100, 240A.110, 240A.120, 240A.123, 240A.240, 240A.260