Nevada Secretary of State sets new regulations for document preparation services

Nevada's Assembly Bill 72, introduced on April 21, 2025, aims to enhance the regulatory framework for document preparation services in the state. This legislation seeks to address concerns regarding the quality and accountability of services provided by businesses and sole proprietors engaged in document preparation, a sector that has seen significant growth in recent years.

The bill outlines several key provisions, including the requirement for applicants to submit a detailed list of business entities or sole proprietorships under which they intend to operate. Additionally, applicants must provide proof of a cash or surety bond, ensuring financial responsibility and consumer protection. A declaration under penalty of perjury is also mandated, confirming that the applicant has not had any prior licenses revoked or suspended in Nevada or elsewhere.

One notable aspect of AB72 is its emphasis on maintaining a rigorous application process. If an application is not completed within 120 days, it will be denied, although applicants can reapply. This provision aims to streamline the registration process while ensuring that only qualified individuals and entities are permitted to operate in this field.

The bill has sparked discussions among stakeholders, with proponents arguing that it will protect consumers from potential fraud and malpractice in document preparation services. Critics, however, express concerns about the potential burden on small businesses and the administrative challenges posed by the new requirements.

Economically, the implications of AB72 could be significant. By establishing clearer standards and accountability measures, the bill may foster greater consumer confidence in document preparation services, potentially leading to increased business for compliant operators. Conversely, the added regulatory burden could deter some entrepreneurs from entering the market.

As the legislative process unfolds, experts suggest that the success of AB72 will hinge on its implementation and the ability of the Secretary of State's office to manage the increased regulatory responsibilities. The bill's passage could mark a pivotal shift in how document preparation services are regulated in Nevada, with potential ripple effects on consumer protection and business practices in the state.