*1
Striсkland,
custody
at
at
in the
two
the sher-
from
officers
Ford,
Here,
simply
as in
was
Hopfinger,
[f
sentence.
improperly
court
enhanced the oral
Lykken permitted to wait for his counsel Lykken, 484 at 875- appeal three oth- tion sentence.
4. We note the direct addressed length affirming Lykken's convic- er issues *2 Woods, M. Billion Fuller, Michael Shultz Falls, & Sioux plaintiff appel- Smith lant. Barnett, General, Attorney
Mark Sherri Wald, Attorney General, Sundem Assistant Pierre, appellees. for defendants and GILBERTSON, (on reassignment). Justice (Boever) appeals W. 1.] John Boever judgment of upholding the circuit court constitutionality of SDCL 3H remand, the circuit court held of Ac- Dakota Board empowers the South (Board) was not an unconstitution- promulgate gov- rules countancy legislative power, and did not public accounting al erning quality reviews process rights. Boever’s due Boever violate firms. affirm. rulings. challenges both *3 PROCEDURE FACTS AND OF REVIEW STANDARD of the facts lead- A detailed recitation appeal in Boever v.
ing to this is set forth Our of a constitutional 7.] review Accountancy, 526 Dakota Bd. South challenge to a is de novo. Green statute (S.D.1995) (Boever I), and will Schutz, 146, ¶ 7, Siegel, 1996 SD Barnett & is a certified repeated not be herein. Boever 557 N.W.2d accountant, SDCL Ch. public licensed under strong presumption There 1990, Boever’s work was 36-20A. In June legislature are by consti- laws enacted eighteen problems were identi- reviewed presumption is rebutted tutional quality review also A second fied a result. clearly, palpably plainly only when problems with Boever’s work. identified provi- a appears that the statute violates a Legislative Audit also filed Department Further, par- of the constitution. sion five complaint against alleging Boever constitutionality ty challenging the deficiencies his work. proving the burden of be- statute bears yond a reasonable doubt that statute the Board filed [¶ On June hearing had a state or federal constitutional alleging notice Boever violat- violates governing provision. administrative rules ed several accounting. Upon public Boever’s ¶ 14, Hauge, (quoting Id. State v. 1996 SD agreeing to all but one the enumerated 173, 175); Kyllo v. Pan 547 N.W.2d accord violations, Boever re- the Board allowed zer, (S.D.1995); practicing as a tain his license to continue (S.D. Tobin, Simpson v. 367 N.W.2d public accountant. 1985). 2, 1993, September Boever filed a [¶ On AND ANALYSIS DECISION judgment challenging
declaratory action 36-20A-15, constitutionality which of SDCL an 36-20A-15 is 1. Whether SDCL authority to delegates pro- legisla- delegation of unconstitutional mulgate regarding rules and authority? tive firms, accounting quality public reviews of 36-20A-20(9), provides for the by the was enacted [¶ 9.] SDCL 36-20A-15 discipline on certain of accountants based grants South Dakota Following hearing, enumerated reasons. Board of Ac- authority to Dakota the South court the Board’s motion for trial regula- countancy promulgate rules and summary judgment ripe- lack of based on quality regarding the tions ness. provides, accounting The statute firms. part, that: relevant appeal, this Court affirmed as
[¶ 5.] On
pur-
rule
36-20A-20(9),
promulgated
holding
since Boe-
The Board
require, on either a
1-26
disciplined,
was no
suant
ver had not been
there
basis, as a condition
real,
controversy.
or a random
imminent
uniform
present
permits pursuant
However,
to renewal of
we reversed and remanded
undergo
36-20A-14,
applicants
§
pertaining to
circuit court’s decision
manner
conducted
quality
reviews
holding that
matter
suffi-
declaratory
'producing such
result
judg-
ciently ripe to consider
However, any
may speсify.
the Board
ment
conflict between Boever
action since
requirement shall include reasonable
regarding
future
re-
and the Board
compliance by means of
provision for
views was imminent
inevitable. Boever
I,
furnishing
satisfac-
evidence
applicant
tory
performed
public accountancy
for other
late the
in
purposes.
cluding licensing
supervisory powers
naturally
power
must include
added).
(emphasis
Based on the
discipline
unqualified.
Appeal
exclude the
statute,
provided it
the Board enacted
Schramm,
(S.D.1987).
regulations relating
various
to an
rules and
“In
general
protect
addition to its
interest in
completion of the
firm’s successful
ing consumers
regulating
commercial
program. Boever claims that
transactions,
special
respon
state bears
Legislature, by
language emphasized
sibility for
above,
maintaining
among
unconstitutionally delegated its rule-
professions.”
members
licensed
making authority
provide
in that
failed to
(citing
Ass’n,
Ohralik v. Ohio
Bar
guidelines
State
standards to
447, 460,
1912, 1920,
Board.
56 L.Ed.2d
*4
(1978)).1
444, 456
state
man
[¶ 10.] Our
constitution
legislative power
of the
dates
“[t]he
regulate
practice
To
public
[¶ 12.]
of
the
Legislature....”
State
be vested
a
accountancy,
Legislature
pass
the
did not
a
III, §
Art
1. It is a
SD Const.
fundamental
statute,
single
chapter, contаining
but a full
principle
Legislature
of our
law
is
thirty-five separate
goal
statutes. The
of the
abdicating
pow
prohibited from
“its essential
chapter is
found
36-20A-2
law,”
policies
to enact
er
into
or from dele
chapter
regulating public
views this
as
ac-
any
gating
power
department
“to
countancy
public:
so that it
offers
body.”
Minneapolis
or
First Nat’l Bank of
performance
offering
per-
or the
Ranch, Inc.,
709,
v. Kehn
394 N.W.2d
718
form,
client,
for a
potential
client or
of one
(S.D.1986). However,
equally
it is
funda
or
involving
more kinds of services
the use
quasi-legislative power may
mental that
accounting
skills,
auditing
including
of
delegated by
Legislature
to administra
reports
of
on
the issuance
financial state-
agencies
carry
tive
to execute or
out
order
ments, or of
manage-
one or more kinds of
existing legislation.
Application
In re
No.
advisory
services,
consulting
ment
5189-3,
907,
(S.D.1991);
N.W.2d
preparation
of tax returns or
fur-
Janklow,
Conservancy
Oahe
Subdistrict v.
nishing of advice on tax matters.2
(S.D.1981);
Foss,
559,
308 N.W.2d
Boe v.
statutory
This
is
a
mandate
enforced
Such a
Accountancy.
Board of
SDCL 36-20A-3.
In
delegation
proper
accompanied by
is
when
regulate
“(1)
any
order to
this profession,
who
clearly expressed legislative
a
will to
practice
wish to
must obtain a
certificate
delegate power,
guide
a
(SDCL 36-20A-8)
public accountancy
a
agency.”
standard to
Application
permit
subject
which is
5189-3,
to annual renewals.
(citing
at 913
First
SDCL 36-20A-10.
Minneapolis,
Nat’l Bank
Ackerson,
Schmitt,
In re
Karlen &
Renewals
are not automatic. The
(S.D.1983)).
applicant
comply
requirements
must
for
beyond argument
continuing
It
professional
education. SDCL
legitimate
State of South
addition,
Dakota has
inter-
In
may
36-20A-12.
the Board
re-
protection
regu-
est
of its citizens to
fuse a renewal for
any
a violation of
one of
point
clearly
1. The facts of this
out
the need
underlying
case
ver admitted all but
of the
one
protection
public
by regulation
interest
allegations and he
into
entered
a consent
I,
profession.
We stated in Boever
agreement
August
with the
on
Board
N.W.2d at 748-49:
Compare
definition with National
quality
In June of 1990 Boever's
review identi-
States,
Broadcasting Co. v. United
319 U.S.
eighteen problems
fied
...
with his work
217-227,
1010-14,
63 S.Ct.
87 L.Ed.
quality
problems.
second
review also identified
Congressional
1363-1368
problems,
where a
addition to
dele-
the South Dako-
gation
(DLA)
Department
Legislative
ta
to the Federal Communications
Audit
filed
Commis-
interest,
complaint
public
against
Boever.
com-
sion
under a "as
The DLA
plaint alleged
necessity” require,
five other deficiencies
Boe-
convenience or
stаndard of
ver's
auditing
delegation.
work.... Boe-
“(10)
wherein the
including
Board
professional requirements
ten
per-
granted
require
attendance
[dishonesty
negligence in the
gross
quality
require
SDCL 36-
at a
review seminar
reviews.”
formance
and/or
any
purchase
prior
Legislature
review manual
did
leave
20A-20.3
when it made reference
to the
review itself.
meant
doubt what
specifically
It
defined
“quality
to a
review.”
Legislature
long as the
[¶ 15.] As
36-20A-l(6)
study, apprais-
“a
it in
provides
guide, standard or intel
a sufficient
of this state or
al or review
a licensee
ligible principle
agency to direct
state,
holding
person
a certificate
authority,
this doеs
delegated
exercise the
aspects
professional
work
one or more
legis
not constitute
forbidden
person
or firm the
power. Application No.
lative
accountancy.”
Mistretta v. United
N.W.2d at
Pursuant
to SDCL
488 U.S.
following
(1989).4
Board
determining
L.Ed.2d
730-31
now
authority which is
under constitutional
Legislature may constitutionally do
what the
challenge,
seeking
assistance
from another
government
delegation, “the
branch of
pur-
promulgated
rule
must
extent and character of
assistance
require, on
1-26
either
suant
according
*5
be fixed
to common sense and
basis,
a
or a random
as
condition
uniform
government
co
inherent necessities of
permits pursuant
to
to renewal of
Mistretta,
372,
ordination.”
U.S.
36-20A-14,
undergo
§
applicants
that
654-55,
714,
(citing
S.Ct.
102 L.Ed.2d
in
manner
quality reviews conducted
States,
Hampton Jr. & Co. United
J.W.
producing such
result
406,
351,
394,
348,
72 L.Ed.
276 U.S.
48 S.Ct.
specify.
Board
(1928)).
36-20A-7(9) which authorizes
See also ascertaining
in
adopt
regarding quality
have held
the Board to
“rules
guidance
a
§
exists is
pursuant
36-20A-15.” Addition- whether
review
to
requires a
of all
question
in
relevant
legislative guidance
al
to be found
(8)
rely
any
act while
3.Clearly
Legislature
to
Performance of
fraudulent
did not intend
holding
permit;
or
grant-
a certificate
solely
a basis for the
on
reviews as
(9)
reflecting adversely upon
Any
conduct
permit.
ing
denying
Legislature
оf a
or
engage
practice of
to
in the
licensee's fitness
comprehensive
a
set of criteria for
enacted
public accountancy; and
basis:
(10) Dishonesty
gross negligence
per-
in the
or
(!)
obtaining
in
or
Fraud or deceit
certificate
reviews.
formance
permit;
Cancellation, revocation,
(2)
States,
414, 420,
suspension, or re-
321 U.S.
4.In Yakusv. United
(1944),
prac-
engage
renew
to
in the
fusal to
88 L.Ed.
any
public accountancy
upheld as
a
other state
Court
constitutional
tice of
in
cause;
empowered
Congress to an administrator which
any
promulgate
Failure,
"to
(3)
that administrator
part
permit
a holder
a
on the
judg-
fixing prices
'in
36-20A-11,
of commodities which
his
pursuant
§
36-
to
or
generally
equitable
fair and
and will
ment will be
20A-14,
compliance
the re-
to maintain
” where,
purposes of
Act'
in
effectuate the
quirements
renewal of such
for issuance or
judgment,
prices
these
the administrator's
pur-
permit
report changes
or to
"
or
to rise to an extent or
'have risen
threaten
or36-20A-16;
§to 36-20A-13
suant
(4)
purposes
of this
inconsistent
manner
suspension
right to
of the
Revocation or
”Act.'
any
agency;
practice before
state or federal
(5) Dishonesty
gross negligence
prac-
or
Rusk,
U.S.
In Zemel v.
filing
public accountancy
or in the
tice of
upheld
the con
L.Ed.2d 179
h
returns;
personal
tax
failure to file
income
stitutionality
"the
of a statute whic stated:
any
provisions
of this
may grant
pass
Violation of
Secretary
and issue
of State
pursuant
promulgated
chapter or
ports
rules
rules as the President
... under such
chapter;
prescribe
designate
1-26
the Board under this
for and on behalf
shall
crime,
any
person
felony
shall
or of
and no other
Conviction
of the United
issue,
fraud,
dishonesty
grant,
verify
passports."
under
of which is
element
States;
nature what is
to be
pursuit
its valuable time in
the adoption
of
of
ed.
specific
they
comprehen
statutes so
are
Applying
‘intelligible principle’
by
only
pro
this
test to
sible
who
in that
delegations,
jurispru-
20:37:13:09,
congressional
our
fession? See ARSD
the adminis
by
practical
has
un-
implementing
dence
been driven
trative rules
quality
derstanding
increasingly
program.7
our
eom-
In
public
the execution of its
Foss,
295,
provides
following
5.
In Boe v.
76 S.D.
is in certain fields in in applying analysis, and some re- this line of spects majority the interest is better served believe the failed to remain has large and, delegating part uрon of detailed law focused the issue of administrators, making to expert specifically, the con- more asserted constitutional by policies, objectives trolled and of SDCL such “producing stan- defect 36-20A-15: may specify. reasonably by using determined that satisfactory results as the board legis- in
the word “other”
subsection
the
relating
predi-
“other
lature was
back to the
majority cites
number
sec-
The
statute,” i.e.,
the
cates enumerated
36-20A, claiming that
eh.
tions from SDCL
in
circumstances described
subsections
standard,
“provide
guide,
the
they
sufficient
(2), thereby
guidance
providing
and
agency
principle to the
to di-
intelligible
or
phrasе “exigent
in interpreting the
circum-
delegated authori-
the
[of]
rect the exercise
case,
Id.
term
In the instant
the
stances.”
However,
the
which
ty.”
none of
statutes
“satisfactory”
subjective,
entirely
and
is
majority provide the
upon
are
the
relied
in
what satis-
language
no similar
36-
guidance
deciding
there is
Board with
be,
factory results
guide
determining
20A
Board in
what
to
the
Yakus,
public,
legisla-
much less indicate to
result.
In
the statu-
of the
the outer bounds
ture
the courts
tory
provided extensive statements
scheme
delegated authority.
legislative policies
the enact-
behind
ments, against
propriety of the
which the
Likewise,
case
cited
law
be
administrator’s
actions could
measured.8
present
distinguishable
majority
from
is
provision
No
is found in ch.
such
36-20A.
Application
the Court
ease.
In
in Boe
Finally,
aptly
the Court
set
while
46-5-26(3),
for
which allowed
legal
are
principles
forth the
to
periods
of construction
de-
the extension
analysis,
application
princi-
our
to “other
exigent
lay
circumstances.”
due
added).
such, very
ples
questionable at
As
(emphasis
is
best.9
at 913
Yakus,
commodity
generally representa-
are
challenged
In
statute mandated that
for
tive)
adjustments
fix
exercise his
to
... and shall make
Administrator
prices
would “effectuate the
in a manner which
deem
factors as he
determine and
relevant
Act”,
purposes
set
[the]
which had been
forth
general applicability, including....
to be
fluctuations,
hy
legislature
as follows:
Speculative
general
increases
distribution,
prevent speculative,
prices
production,
"to
and to
stabilize
decreases in costs
unwarranted,
transportation,
general
abnormal
increases
and
increases
rents;
prevent
prices
profits
to eliminate and
earned
sellers of
decreases in
commodity
commodities,
hoarding,
specula-
profiteering,
manipulation,
during
and subse-
tion,
disruptive practices resulting
quent
year
October
1941.”
endеd
or scarcities
abnormal market conditions
from
at 846
64 S.Ct. at
L.Ed.
contributing
(citation omitted).
national emer-
caused
appropriations
gency; to assure that defense
prices;
dissipated by
pro-
Boe,
are
excessive
authorized the
the statute
issue
relatively
persons
fixed and limited
tect
Regents
apartment
hous-
Board of
construct
earners, investors,
incomes, consumers, wage
grounds
insti-
ings
on the
and dormitories
insurance,
persons dependent
an-
on life
whenever
which it controlled
tutions
nuities,
impairment
pensions,
from undue
“necessary
Regents
facilities
deemed such
living;
prevent
hard-
of their standard
(emphasis add-
...."
ated
on Issue 36-20A-15 not an is
unconstitutional violation of due Boever’s
process rights.
vide review” board to Sully District, surer Buttes School duce such results as the board Appellants, may specify.” three defects are obvious. First, merely stаtute provides “quality review,” process, Gettysburg not a Pierre School District and Second, objective District, Respondents. standard. instead of an School test, the “satisfactory statutes call for results No. 19593. may specify,” subjec- as the board ais Finally, legislation tive test. provides Supreme Court of Dakota. South subjective the improper test Argued Sept. 1996. performed by set board legislature required. Reassignment Dec. 1996. Compare Cary City Rapid [¶42.] Decided March City, ¶ 23, 1997 SD Rehearing April Denied we recently where stated: The ultimate determination of public’s legislative
best interest body, is for the minority of neighboring property owners.
Delegations legislative authority which added). (emphasis
id.
