CONTINENTAL CONSTRUCTION CO., APPELLANT,
v.
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND, APPELLEE

Fla. 1st DCA | 1985-02-18
No. AZ-119
MILLS and ZEHMER, JJ., concur.
464 So. 2d 204 Florida District Court of Appeal, First District (1985) Negative Treatment
Cited by 4 cases

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Synopsis

Continental Construction Company challenged a penalty assessed by the Board of Trustees for unauthorized use of state sovereignty submerged lands. The court held that the Board lacked specific legislative authority to impose penalties under the Florida Constitution, making the penalty provision unconstitutional.


Holding

The court held that Article I, Section 18 of the Florida Constitution prohibits administrative agencies from imposing penalties without specific legislative authorization. The Board's penalty provisions in the administrative rule violated the Constitution because Chapter 253, Florida Statutes, while granting the Board broad general powers to protect and conserve state lands, did not expressly authorize the imposition of penalties.


Headnotes

[1] Administrative agencies cannot impose penalties without specific legislative authorization.

[2] A rule imposing an assessment calculated as a multiple of lease fees for unauthorized use of land constitutes an impermissible penalty when not specifically authorized by…

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Key Quotes

“No administrative agency shall impose a sentence of imprisonment, nor shall it impose any other penalty except as provided by law.”

Constitutional provision establishing the requirement for specific legislative authorization before administrative penalties can be imposed

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Facts & Procedural History

In December 1977, the Board approved Continental's use of sovereignty submerged lands in Boca Ciega Bay for a docking facility. In February 1980, Cont…

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Opinion of the Court
ERVIN, Chief Judge.

ERVIN, Chief Judge.

Continental Construction Company (Continental) appeals from a final order of the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida (Board), assessing a penalty against Continental for the unauthorized use of sovereignty submerged lands, entered pursuant to Florida Administrative Code Rule 16Q-21.11(1)(1)2.

Appellant argues that the Board’s assessment of the penalty is erroneous because the Board has not been legislatively delegated the power to impose penalties; therefore the penalty is contrary to the provisions of Article I, Section 18 of the Florida Constitution, prohibiting administrative penalties in the absence of specific legislative authorization.

We agree and reverse.1 On December 6, 1977, the Board approved the use of 25,047 square feet of sovereignty submerged lands located in Blind Pass, Boca Ciega Bay, Pinellas County, for the installation of a docking facility by Barnes Mortgage Investment Trust, predecessor in interest to Continental. All of the necessary state, local, and federal agency permits were obtained for the construction of the 46 boat slips and attendant docks. Before construction of the final 17 of the original 46 slips was completed, Continental determined to build additional slips on two larger T-docks at the same location.

In June of 1979, Continental, through its engineer, filed an application with the Department of Environmental Regulation (DER) to build the two additional docks, requiring a lease of an additional 75,568 square feet of sovereignty submerged lands. Continental then applied for and received a permit from the Corps of Engineers, and a water and navigation control permit from Pinellas County.

On February 12, 1980, Continental, mistakenly believing that all required documentation had been supplied for the additional docks, began construction on the T-shaped docks, thereby expanding the docking facility without the Board’s prior authorization. Continental thereafter sought an after-the-fact lease expansion permit from the Board, which was granted, but the Board also assessed the sum of $32,242.24 against Continental for its unauthorized use of sovereignty submerged lands, pursuant to Rule 16Q-21.11(1)(1).

The Board’s assessment, authorized by Rule 16Q-21.11(1)(1), includes:

1. Payment of retroactive lease fees;

2. Payment of an assessment computed as the number of square feet in the lease area times the lease fee per square foot at the time construction was commenced times ten; and,

3. Payment of an additional annual percentage on retroactive lease fees and on the assessment calculated under 2., computed at a rate of 12%. Such rate shall be adjusted annually to a rate equal to the two percentage points above the Federal Reserve Bank discount rate to member banks.

At issue here is the constitutionality of only the penalty assessment provision under Rule 16Q-21.11(1)(1)2. We are not confronted with, and therefore we do not address, any question of whether the Board illegally assessed retroactive lease fees. Article I, Section 18 of the Florida Constitution provides:

No administrative agency shall impose a sentence of imprisonment, nor shall it impose any other penalty except as provided by law.

The Board argues that rule 16Q-21.-11(1)(1)2 does not violate Article I, Section 18 of the Florida Constitution for two reasons: (1) The rule is a remedial provision designed to effect restitution and thus not a penalty proscribed by Article I, Section 18; and (2) even if rule 16Q-21.11(1)(1)2 imposes a penalty, Chapter 253, Florida Statutes provides broad authority to the Board for the exercise of such powers. We disagree on both points and find the rule violates the provision in question of the Florida Constitution.

Addressing the Board’s first argument, we find that the Board has assessed against Continental the payment in part of retroactive lease fees, pursuant to rule 16Q-21.11(1)(1)1, allowing restitution to the state for the improper use of sovereign submerged lands. Clearly, that part of the Board’s assessment, as authorized by rule 16Q — 21.11(1)(1)¾ which is computed on the basis of “the number of square feet in the lease area times the lease fee per square foot at the time construction was commenced times ten”, is patently an attempt to exact a penalty for the unauthorized use of the land, above the amount exacted as a retroactive lease fee, permitted by rule 16Q-21.11(1)(1)1. See Hyman v. State, Department of Business Regulation, Division of Pari-Mutuel Wagering, 431 So. 2d 603 (Fla. 3d DCA 1983).

Similarly, that portion of rule 16Q-21.11(1)(1)3, providing for the payment of an additional annual percentage “on the assessment calculated under 2” must additionally be considered a penalty and declared invalid.

We disagree also with the Board’s argument that chapter 253 grants to it the power to impose a penalty for the unauthorized use of state lands.

Section 253.04, Florida Statutes (1983), provides that “The Board of Trustees of the Internal Improvement Trust Fund may police, protect, conserve, improve; ... or take such other action or do such other things as may in the judgment of the board be necessary for the full protection and conservation of the said lands.” (emphasis supplied) Although chapter 253 provides the Board with general, broad powers to protect and conserve the sovereignty lands, Article I, Section 18 of the Florida Constitution prohibits administrative agencies from imposing any form of penalty “without specific legislative authority.” (e.s.) McFarlin v. State, Department of Business Regulation, Division of Pari-Mutuel Wagering, 405 So. 2d 255, 256 (Fla. 3d DCA 1981).

Finding no specific or express legislative authority for the Board to impose an assessment under the “penalty” provisions of rule 16Q-21.11(1)(1)2, or that portion of subsection 3, as above stated, we conclude that the above referred provisions of the rule violate Article I, Section 18 of the Florida Constitution.

The Board of Trustees’ order is reversed and the cause is remanded with directions that the Board delete from the total assessment imposed that portion which can be attributed to the illegal exaction of a penalty.

MILLS and ZEHMER, JJ., concur. . Continental also argues that the Board erred in retroactively applying the penalty provisions of Florida Administrative Code Rule 16Q-21.-11(1)(1)2, contrary to the express provisions of Florida Administrative Code Rule 16Q-21.02(2). Because we find Florida Administrative Code Rule 16Q-21.11(1)(1)2 unconstitutional, we need not address that issue. We also note that the issue of whether the Board erred in retroactively applying the provisions of Florida Administrative Code Rule 16Q — 21.11(1)(1)1 and 16Q-21.11(1)(1)3, contrary to the express provisions of Florida Administrative Code Rule 16Q-21.-02(2) is not before this court.


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Citator

Cited By

  • Robert E. Willner, M.D. v. Dep't of Prof'l Reg., 563 So. 2d 805 (Fla. 1st DCA 1990)
    …legislative authority relied upon by the agency is sufficiently specific to indicate a clear legislative intent that the agency have authority to exact the penalty prescribed. Continental Const. Co. v. Board of Trustees of Internal Imp. Trust Fund, 464 So. 2d 204 (Fla. 1st DCA 1985), review denied, 472 So. 2d 1180 (Fla.1985). We find the language of Section 458.-331(2)(f), Florida Statutes, to be a general grant of authority to the appellee, lacking in sufficient specificity to evince a legislative intent to…
  • Decarion v. Martinez, 537 So. 2d 1083 (Fla. 1st DCA 1989)
    …ment in an action to quiet title wherein the Board of Trustees was explicitly noted to be an “agency of the State of Florida Department of Natural Resources”), and Continental Construction Co. v. Board of Trustees of Internal Improvement Trust Fund, 464 So. 2d 204 (Fla. 1st DCA 1985), pet. for rev. denied, 472 So. 2d 1180 (Fla.1985) (portions of assessment by Board of Trustees for unauthorized use of submerged sovereignty lands were invalid as violating state constitutional provision prohibiting administrativ…

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