Senate Bill No. 203-Committee on Judiciary

March 10, 1997
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Referred to Committee on Judiciary

SUMMARY--Revises provisions governing unauthorized practice of law. (BDR 1-307)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to the practice of law; defining the term "practice of law"; revising provisions governing the unauthorized practice of law; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 Chapter 7 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 2, for the purposes of this chapter, "practice of law" includes, without limitation:
(a) Furnishing advice or counsel, in any form or manner, to another person concerning the interpretation of any law or regarding any legal right, duty, obligation or remedy available by law;
(b) Appearing before a court, magistrate, arbitrator or other tribunal in this state on behalf of another person; and
(c) Drafting a legal document for another person, whether or not it is for compensation, including, without limitation, drafting:
(1) A pleading or other document to be filed with a court or governmental agency of this state;
(2) A deed, mortgage, assignment, discharge, lease, lien or any other document that affects or concerns the title to or interest in real property, or a legal opinion regarding the effect or sufficiency of such a document;
(3) A power of attorney, trust agreement, will, plan for the management or distribution of an estate, or any other document which affects the disposition of real or personal property or any interest therein;
(4) A document which affects a right or duty relating to the care or custody of a dependent person, including, without limitation, a person less than 18 years of age or a person who has been declared incompetent;
(5) The articles of incorporation, articles of organization, bylaws or any other document relating to the formation, registration, certification, organization, operation, dissolution, or termination of a corporation, partnership, limited-liability company or any other business, including, without limitation, a nonprofit business; or
(6) Any other document which affects or concerns the legal right or obligation of another person.
2. The practice of law does not include:
(a) The conduct set forth in subsection 1 if it is performed by a person who is under the direct supervision of an attorney who is an active member of the State Bar of Nevada. For the purposes of this paragraph, the conduct of a person is performed under the direct supervision of an attorney who is an active member of the State Bar of Nevada only if the supervising attorney:
(1) Is present when any oral advice or counsel set forth in paragraph (a) of subsection 1 is furnished by the person under his supervision and accepts full responsibility for any such advice or counsel;
(2) Is present during any appearance set forth in paragraph (b) of subsection 1 by the person under his supervision and accepts full responsibility for the conduct of the person during any such appearance; and
(3) Signs any legal document set forth in paragraph (c) of subsection 1 that is drafted by the person under his supervision and accepts full responsibility for the content of any such document.
(b) The conduct set forth in subsection 1 if it is performed by a person who is:
(1) Authorized to engage in the conduct pursuant to federal or state law, the rules of the State Bar of Nevada or the rules of the supreme court of Nevada; or
(2) Limited to selling a standardized legal form or document which has not been modified and upon which no advice is given with respect to the completion of that form or document.
(c) Preparing any document set forth in subsection 1 if the person is preparing the document for his own use or for the use of another person who is a party to a transaction in which the person preparing the document is also a party.
Sec. 2 NRS 7.285 is hereby amended to read as follows:
7.285 1. [No] A person shall not engage in the practice of law in this state , or represent himself to the public as qualified to engage in the practice of law, unless he is an active member of the State Bar of Nevada pursuant to the rules of the supreme court.
2. A person shall be deemed to represent himself to the public as qualified to engage in the practice of law if he uses any name, title or description that implies that he is qualified or licensed to engage in the practice of law.
3.
[Any] A person who, not being an active member of the State Bar of Nevada, or who, after he has been disbarred or while suspended from membership in the State Bar of Nevada, as provided in the rules of the supreme court, [shall] engages in the practice of law or represents himself to the public as authorized to engage in the practice of law, is guilty of a gross misdemeanor. A person who is found guilty of violating this section who charged a fee for his services when unlawfully engaging in the practice of law, in addition to any other penalty imposed, shall pay:
(a) A civil penalty of not more than $1,000. The money so collected:
(1) Must not be deducted from any penal fine imposed by the court; and
(2) Must be stated separately on the court's docket.
(b) Restitution to the person who was charged the fee.
4. The court administrator appointed pursuant to NRS 1.330 shall collect any civil penalties imposed pursuant to subsection 3 and distribute any amount so collected quarterly to the State Bar of Nevada on July 1, October 1, January 1 and April 1. The State Bar of Nevada shall use the money only to enforce the provisions of this section.
5. The person who was wronged or the State Bar of Nevada may commence an action pursuant to this section in any district court in this state. A court may order a person who is found guilty of violating this section to pay reasonable attorney's fees incurred because of his conduct to the prevailing party.

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