4245 CORPORATION, MOTHER'S LOUNGE, INC. AND CHEETAH III, INC., PETITIONERS,
v.
DIVISION OF BEVERAGE, RESPONDENT
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Florida licensees challenged a proposed Division of Beverage rule restricting sexual conduct on licensed premises through administrative proceedings before the Department of Administrative Hearings. The court held that the Administrative Procedure Act permits judicial review of a hearing officer's final order validating a proposed rule, even before agency adoption and enforcement, rejecting the Division's motion to dismiss for lack of jurisdiction.
The court held that it has jurisdiction to review the hearing officer's final order because the Administrative Procedure Act permits judicial review of final agency action, and rulemaking proceedings resulting in a hearing officer's final order constitute final agency action reviewable by courts. Either party aggrieved by the hearing officer's rule determination may seek judicial review under the APA.
[1] A party prospectively affected by an adopted rule may challenge it administratively as an invalid exercise of delegated legislative authority and seek judicial review of…
[2] Agency rulemaking itself constitutes final agency action which an adversely affected party may judicially challenge by a timely petition for review.
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Join FLexlaw to unlock all legal intelligence“The APA does not withhold judicial review of a new rule until an affected party at its peril violates the rule and thereby induces agency proceedings under Section 120.57 to punish for offending conduct.”
Establishes that the APA permits pre-enforcement judicial review of proposed rules through rule challenge proceedings
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Join FLexlaw to unlock all legal intelligenceThe Division of Beverage proposed a rule forbidding certain sexual conduct on the premises of alcoholic beverage licensees. Three corporations holding…
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SMITH, Judge.
By motion to dismiss, the Division of Beverage urges the court is without jurisdiction to review the order of a hearing officer of the Division of Administrative Hearings, Department of Administration (DOAH), holding the Division’s proposed rule affecting alcoholic beverage licensees would not, if adopted, constitute an invalid exercise of delegated legislative authority. The petitioning licensees, aggrieved by the Division’s proposed rule forbidding certain sexual conduct on the premises of licensees, properly initiated DOAH rule challenge proceedings in the course of the Division’s rulemaking proceedings. Section 120.54(4), Florida Statutes (Supp.1976).1 The hearing officer’s order remits the parties — the Division and this licensee2 to the Division’s rulemaking proceedings.
Buttressing its motion with constitutional arguments concerning limitations on the judicial power, the Division asserts the licensees cannot be “affected by final agency action” and therefore “entitled to judicial review” under Section 120.68(1) until the agency adopts the proposed rule and undertakes to enforce it against an offending licensee in Section 120.57 proceedings; and, alternatively, that judicial review must at least await agency adoption of the proposed rule. We disagree.
The APA does not withhold judicial review of a new rule until an affected party at its peril violates the rule and thereby induces agency proceedings under Section 120.57 to punish for offending conduct. One who is prospectively affected by an adopted rule may challenge it administratively as “an invalid exercise of delegated legislative authority,” obtain a ruling by a DOAH hearing officer, and promptly seek judicial review of that “final agency action.” Sections 120.56, .68. Absent rule challenge proceedings, a party whose substantial interests are determined in agency enforcement proceedings may, of course, timely seek judicial review of the final agency order and there challenge the underlying rule.
Sections 120.57, .68; State ex rel. Dep’t of Gen. Serv. v. Willis, 344 So. 2d 580 (Fla. 1st DCA 1977). In that event the party’s prior failure to institute administrative rule challenge proceedings does not constitute failure to exhaust administrative remedies.
Sections 120.-54(4)(d), .56(4); Willis, 344 So. 2d at 592. But rulemaking itself constitutes final agency action which an adversely affected “party” may judicially challenge by a timely petition for review.
Sections 120.52(2), (14), 120.54, 120.68(1).
Upon the Division’s adoption of this proposed rule, petitioners as parties to these rulemaking proceedings would be entitled to judicial remedies under the APA. Nor do we lack jurisdiction, as the Division contends, to review the hearing officer’s final order that the proposed Division rule is valid. If the APA withheld judicial review in such circumstances, an agency whose proposed rule was administratively invalidated would have no recourse except to withdraw the proposed rule.3 That result, here urged by the Division against its own prospective interests, is not countenanced by the APA. Either the party challenging the rule or the agency, if aggrieved by the hearing officer’s rule determination, may have judicial review under Section 120.68. That is the import of Section 120.54(4)(d), which provides that the hearing officer’s order in such circumstances “shall be final agency action.” The finality of agency action is the principal jurisdictional requisite to judicial review as of right.
Section 120.68(1).4 Dep’t of Environ. Reg. v. Leon County, 344 So. 2d 297 (Fla. 1st DCA 1977).
Thus the APA grants the jurisdiction which the Division here contests. The grant was made pursuant to constitutional authority for laws defining “the power of direct review of administrative action.” Article V, Section 4(b)2, Florida Constitution. Having jurisdiction by Constitution and statute, the courts exercising it do not offend the proscription that “No person belonging to one branch shall exercise any powers appertaining to either of the other branches unless expressly provided herein.” Article II, Section 3, Florida Constitution. Nor will our disposition of the case result in a prohibited “advisory opinion” concerning proposed legislation. Collins v. Horten, 111 So. 2d 746, 751 (Fla. 1st DCA 1959).
While courts lack power to prohibit “the exercise by the Legislature of its lawmaking authority,” a DOAH determination of the invalidity of a proposed rule has exactly that effect on the proposed rulemaking. No reason appears why the legislature could not constitutionally balance its grant of power to DOAH by providing also for judicial review.
The Division’s motion to dismiss is DENIED. RAWLS, J., concurs.
McCORD, C. J., specially concurs.
. Florida’s Administrative Procedure Act (APA) there provides that any substantially affected person may challenge a proposed rule as “an invalid exercise of delegated legislative authority” in proceedings before a DOAH hearing officer. . Sec. 120.54(4)(d) provides: “The agency proposing the rule and the person requesting the hearing shall be adversary parties. Other substantially affected persons may join in the proceeding as parties or intervenors on appropriate terms which will not substantially delay the proceedings.”
. “The hearing officer may declare the proposed rule wholly or partly invalid. The proposed rule or provision of a proposed rule declared invalid shall be withdrawn from the committee by the adopting agency and shall not be adopted.” Section 120.54(4)(c).
. “A party who is adversely affected by final agency action is entitled to judicial review.”
McCORD, Chief Judge,
concurring specially.
While it is incongruous that the Legislature would declare the order of a hearing officer which approves a proposed rule of an agency to be “final agency action” (and thereby subject to judicial review) when clearly there is no “final agency action” in fact until the proposing agency thereafter adopts the rule (or has a change of heart and rejects it), the Legislature has been given that power by the Constitution, as pointed out in the majority opinion. The Legislature has here declared in effect that “white” is “black.”
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Prof'l Firefighters OF Fla., Inc. v. Dep't of Health & Rehabilitative Servs., 396 So. 2d 1194 (Fla. 1st DCA 1981)…APA permits prospective challenges to agency rulemaking and does not require that an affected party comply with the rule at his peril in order to obtain standing to challenge the rule. 4225 Corporation, Mother’s Lounge, Inc. v. Division of Beverage, 348 So. 2d 934, 936 (Fla. 1st DCA 1977). A party may demonstrate [*1196] standing by showing that a rule has a real and immediate effect upon his case, as well as by proving injury in fact. State Department of Commerce v. Matthews, 358 So. 2d 256, 257 n.1 (Fla. 1s…
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Adam Smith Enters., Inc. v. State of Fla. Dep't OF Env't Reg., 553 So. 2d 1260 (Fla. 1st DCA 1989)…cial review); City of Key West v. Askew, 324 So. 2d 655 (Fla. 1st DCA 1975) (court expressly stated that adoption of a rule constitutes final agency action subject to judicial review); 4245 Corporation, Mother’s Lounge, Inc. v. Division of Beverage, 348 So. 2d 934, 936 (Fla. 1st DCA 1977) (court held that rulemaking itself constitutes final agency action which an adversely affected party may judicially challenge by a timely petition for review, §§ 120.52(2), (14), 120.54, 120.68(1), and, upon the Division’s a…1 / 3
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Dep't OF Prof'l Reg. v. John H. LeBARON, D.D.S., 443 So. 2d 225 (Fla. 1st DCA 1983)…0.56(5), and 394.457(6)(b), Florida Statutes (1981). The reviewability, in this court, of hearing officers' final orders in rule-making proceedings was fully discussed and confirmed in 4245 Corporation, Mother’s Lounge, Inc. v. Division of Beverage, 348 So. 2d 934 (Fla. 1st DCA 1977).…
Previewing 3 of 12 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- State of Fla. ex rel. Dep't OF Gen. Servs. v. Willis, 344 So. 2d 580 (Fla. 1st DCA 1977)
- Dep't OF Env't Reg. v. Leon Cnty., 344 So. 2d 297 (Fla. 1st DCA 1977)
- Collins v. Horten, 111 So. 2d 746 (Fla. 1st DCA 1959)