CPA applicant with felony record wins license from NESCT

Due process required Accountants' Board to specify character/fitness issues applied to applicant who met statutory standards Troshynski v. Nebraska State Bd. of Pub. Accountancy,270 Neb. 347 Filed August 5, 2005. No. S-04-510. The Nebraska State Board of Public Accountancy denied the Plaintiff his CPA designation because he had a criminal record from 1990, namely conspiracy to distribute cocaine. The Plaintiff appealed the Board's denial to the Lancaster County district court where District Judge Mcginn reversed the Board's decision. The Board argues to the Supremes that § 1-114 RRS Neb.(Cum. Supp. 2004) allows it discretion to refuse a certificate eventhough an applicant meets the statute’s enumerated requirements. NESCT holds: although the statute would allow the Board rulemaking ability to establish character and fitness standards, The Board could not deny the Plaintiff his CPA designation because it did not instiute such standards; district court affirmed. "The Public Accountancy Act is codified at Neb. Rev. Stat. §§ 1-105 to 1-171 (Reissue 1997 & Cum. Supp. 2004) and provides for the creation of the Board in § 1-107." "the Board is authorized to “adopt and promulgate rules and regulations of professional conduct appropriate to establish and maintain a high standard of integrity and dignity in the profession of public accountancy.” § 1-112" " § 1-114(2) provides:...the board shall issue a certificate of certified public accountant to any person...(b) who has passed a written examination in accounting, auditing, and such other related subjects as the board determines to be appropriate." "we hold that the act implicitly permits the Board to use its rulemaking authority under § 1-112 to promulgate standards and procedures whereby the character and fitness of an applicant for initial certification may be considered by the Board in determining whether the applicant is a qualified person under § 1-105.01." However " (The Boards regulations) have no rules pertaining to character and fitness standards or procedures applicable to initial certification." "Because the Board had not established character and fitness standards and procedures through the proper exercise of its rulemaking authority, its attempt to do so on an ad hoc basis resulted in a denial of Troshynski’s right to due process." NESCT distinguishes result of this case from Bartlett v. State Real Estate Commission, 188 Neb. 828, 199 N.W.2d 709 (1972) bad character/fitness could prevent licensing since, applicants had due process notice that this would be an issue.