Lewis, J.
Appellant, Northwood Associates, LLC, appeals a final judgment entered in favor
As found by the trial court, Appellant had two leases with three state executive branch agencies — the Department of Management Services ("DMS"), the Department of Children and Families ("DCF"), and the Agency for State Technology ("AST") — for office space at Northwood Centre.
The proviso language at issue as to DMS set forth:
The proviso language was virtually identical as to the Department of Business and Professional Regulation, DCF, AST, DOE, the Department of Revenue, and the Department of State. The proviso language for the Department of Economic Opportunity excluded "State of Florida Lease No. 400:0070" from the prohibition.
In Count I of its Amended Complaint against Appellees, Appellant sought a declaratory judgment and injunctive relief, alleging that because the Legislature appropriated funds at the request of the various lessees to fund the leases, the proviso
Thereafter, Appellant filed a motion for summary judgment as to Counts I and II. Appellees also filed motions for summary judgment as to those counts. In the Order Denying Plaintiff's Motion for Summary Judgment as to Counts I and II and Granting Defense Motions as to Counts I and II, the trial court set forth in part:
The trial court subsequently entered a Final Judgment in favor of Appellees. This appeal followed.
A trial court's order granting final summary judgment is reviewed de novo to determine whether there are genuine issues of material fact and whether the court properly applied the correct rule of law. Glaze v. Worley, 157 So.3d 552, 553-54 (Fla. 1st DCA 2015); see also Castleberry v. Edward M. Chadbourne, Inc., 810 So.2d 1028, 1029 (Fla. 1st DCA 2002) ("Summary judgment is appropriate if there is no genuine issue of material fact and if the moving party is entitled to a judgment as a matter of law."). The interpretation of a constitutional provision is also a question of law reviewable de novo. Fla. Dep't of Revenue v. City of Gainesville, 918 So.2d 250, 256 (Fla. 2005).
Appellant first argues on appeal that the trial court erred in relying upon Benson v. State, Department of Corrections, 194 So.3d 1048 (Fla. 1st DCA 2016). There, the appellants appealed a summary judgment order entered in favor of the appellee that concluded that the appellee did not breach a lease for office space owned by the appellants. Id. at 1049. In 2007, the appellee agreed to lease office space from the appellants for a term extending through 2015. Id. In accordance with section 255.2502, the lease included a provision making the appellee's "performance and obligation to pay under [the] contract ...
The appellants argued on appeal as follows: (1) the trial court erred in granting summary judgment as the proviso unlawfully impaired their contractual rights; (2) summary judgment was entered in error because the Legislature unlawfully delegated its legislative authority to the appellee in the proviso; (3) summary judgment was improper because the appellee breached the contract; (4) reversal was warranted even if the proviso was valid because the appellee applied it in a constitutionally defective manner; and (5) the proviso as applied violated the single subject rule. We rejected the arguments, finding that the central issue in the appeal was whether the availability of funds provision excused the appellee's obligation to perform after April 2012. Id. Under the circumstances present in the case, we concluded that the appellee did not breach its lease because the availability of funds provision excused it from its obligation to pay and perform. Id. As for the appellants' constitutional claims, we set forth, "Finally, we find no merit in the Bensons' various other arguments that the proviso and the Department's actions violated the Florida Constitution." Id.
Appellant argues that this case is distinguishable from Benson because, unlike in that case where there was a budget reduction, the Legislature fully funded the tenant agencies' lease obligations but prohibited any payment to Appellant. We find this, however, to be a distinction without a difference. In Benson, the agency was prohibited from paying rent for certain leased property. Similarly, in this case, the proviso prohibited the tenant agencies from paying rent for certain leased property. As the supreme court has explained, "The state may not employ state funds unless such use of funds is made pursuant to an appropriation by the Legislature." Am. Home Assurance Co. v. Nat'l R.R. Passenger Corp., 908 So.2d 459, 474 (Fla. 2005). Article VII, section 1(c) of the Florida Constitution, which provides that "[n]o money shall be drawn from the treasury except in pursuance of appropriation made by law," "secures to the Legislature (except where the Constitution controls to the contrary) the exclusive power of deciding how, when, and for what purpose the public funds shall be applied in carrying on the government." Id. at 474-75 (quoting State ex rel. Kurz v. Lee, 121 Fla. 360, 163 So. 859 (1935)). Based upon the foregoing, we find no merit in Appellant's argument that the trial court erred in relying upon Benson when rejecting its constitutional challenges to the proviso. However, even if Benson was not controlling, rejection of
Appellant contends that the proviso violates article I, section 10 of the Florida Constitution's prohibition against laws impairing contracts. The supreme court has explained that "[t]o impair a preexisting contract, a law must `have the effect of rewriting antecedent contracts' in a manner that `chang[es] the substantive rights of the parties to existing contracts.'" Searcy, Denney, Scarola, Barnhart & Shipley v. State, 209 So.3d 1181, 1192 (Fla. 2017). An impairment may be constitutional if it is reasonable and necessary to serve an important public purpose. Id.
In support of its argument, Appellant cites Chiles v. United Faculty of Florida, 615 So.2d 671, 672 (Fla. 1993), where various public employee unions challenged the Legislature's decision to eliminate pay raises that it had previously authorized. In ruling in favor of the unions and noting that the State was clearly a party to the contract, the supreme court set forth in part, "Once the executive has negotiated and the legislature has accepted and funded an agreement, the state and all its organs are bound by that agreement under the principles of contract law. The act of funding through a valid appropriation is the point in time at which the contract comes into existence." Id. at 672-73. In Searcy, Denney, Scarola, Barnhart & Shipley, another case relied upon by Appellant, the supreme court stated that "once that [legislative] discretion has been exercised by enactment of a claims bill awarding payment of all or part of an excess judgment for damages..., the Legislature may not impair the preexisting contract rights of the parties for attorneys' fees as occurred by the fee and cost limit imposed in the claims bill in this case." 209 So.3d at 1195.
As Appellees point out, Appellant's reliance upon Chiles and Searcy is misplaced as neither dealt with leases entered into by state agencies and an availability of funds clause. Moreover, while Appellant makes the general argument that no valid contract exists where one party retains the option of fulfilling or declining to fulfill its obligations under the contract, this is not a situation where the leases gave the tenant agencies the choice to abandon their contractual obligations. Instead, this is a situation where Appellant chose to enter into the lease agreements that were contingent upon legislative appropriation. As a result of doing so, Appellant was never guaranteed that the leases would be funded for each of the years in question. In addition, Appellant's argument that there was no legitimate public purpose behind the proviso ignores the situation that many state employees faced while working at the leased premises. This was not, contrary to Appellant's contention, a scenario where the Legislature indiscriminately chose to target certain agency leases.
Appellant also argues that article I, section 10 would prohibit the Legislature from passing a general law saying that "[a]ll contracts for lease of space at Northwood Centre are terminated" and that the Legislature should not be permitted to do indirectly what it cannot do directly. The difference between the two scenarios, however, is that the Legislature is the state entity holding the power to appropriate funds. See State v. Fla. Police Benevolent Ass'n, 613 So.2d 415, 418-19 (Fla. 1992) (noting that the Legislature has the exclusive right to appropriate funds).
In Florida Department of Health and Rehabilitative Services v. Southern Energy, Ltd., 493 So.2d 1082, 1082 (Fla. 1st DCA 1986), the appellant agency sought review of a final judgment that found liability for breach of contract and contended
Appellant next contends that the proviso violates the single subject provision of article III, section 12 of the Florida Constitution, which provides, "Laws making appropriations for salaries of public officers and other current expenses of the state shall contain provisions on no other subject." As part of the Legislature's authority to enact appropriations and reasonably direct their use, it may attach qualifications or restrictions to the use of appropriated funds. Brown v. Firestone, 382 So.2d 654, 663 (Fla. 1980). In accordance with article III, section 12, a general appropriations bill must deal only with appropriations and matters properly connected therewith. Id. The first of two major considerations underlying the one-subject requirement is the need to prevent logrolling in appropriations bills. Id. The second reason behind the requirement is to ensure the integrity of the legislative process in substantive lawmaking. Id. at 664. "Our state constitution demands that each bill dealing with substantive matters be scrutinized separately through a comprehensive process which will ensure that all considerations prompting legislative action are fully aired." Id. Given such, appropriations bills "must not change or amend existing law on subjects other than appropriations." Id. Article III, section 12 "will countenance a qualification or restriction only if it directly and rationally relates to the purpose of an appropriation and, indeed, if the qualification or restriction is a major motivating factor behind enactment of the appropriation." Id.
In support of its single subject argument, Appellant relies in part upon Florida Pharmacy Association v. Lindner, 645 So.2d 1030, 1031 (Fla. 1st DCA 1994), wherein we reviewed a judgment declaring an appropriations proviso unconstitutional and held in part, "[W]e conclude that the effect of the subject proviso was to impermissibly alter or modify existing substantive law concerning the procurement of cost-efficient health insurance benefits for State of Florida employees." Id. at 1032. Specifically, the legislative directive encompassed within the proviso was found by this Court to essentially nullify the competitive procurement requirements found within section 110.123, Florida Statutes, and, thus, tacitly amend existing law. Id. As such, we affirmed. Id. at 1033.
Appellant also relies upon Department of Education v. Lewis, 416 So.2d 455, 459 (Fla. 1982), where the proviso at issue provided that no appropriated funds could be used to finance any state-supported public or private postsecondary education institutions that chartered or gave official recognition or assistance to or provided meeting facilities for any group or organization that recommended or advocated sexual relations between persons not married to each other. In holding that the proviso violated article III, section 12 of the Florida Constitution, the supreme court set forth, "[T]he proviso attempts to
The factual situation involved in this case is far different from Lindner and Lewis. The Legislature did not alter substantive law in this case as it was found to have done in Lindner. Nor is the situation in this case one where the Legislature was attempting to make substantive policy in an appropriations bill as was done in Lewis. Instead, the Legislature chose not to appropriate money to certain leases because of the conditions at the leased premises, which is something that it was statutorily authorized to do.
Appellant also cites section 255.249(4), Florida Statutes, which governs the lease of space by state agencies and directs DMS "to the extent feasible, [to] coordinate the vacation of privately owned leased space with the expiration of the lease on that space" and "when a lease is terminated before expiration of its base term, [it] will make a reasonable effort to place another state agency in the space vacated." As Appellees contend, however, in a situation where it is the conditions of the leased premises that caused the termination of the lease, it would not be feasible or reasonable for DMS to place another state agency in the "space vacated."
Appellant next argues that the proviso is not rationally related to or a major motivating factor for the underlying appropriations. According to Appellant, the proviso furthers an alternative legislative objective wholly unrelated to the funding of the tenant agencies. However, Appellant fails to explain how the legislative objective, which was to stop using state funds for the premises at issue given the conditions therein, was unrelated to the funding of the tenant agencies. Indeed, the legislative objective was entirely related to funding the tenant agencies' rental needs. See Div. of Admin. Hearings v. Sch. Bd. of Collier Cty., 634 So.2d 1127, 1129 (Fla. 1st DCA 1994) ("The Florida Constitution's mandate that appropriations bills `contain provisions on no other subject' requires only that the appropriations bill not amend existing law on subjects other than appropriations, and that a qualification or restriction rationally relate to the purpose of the appropriation.... The provisos concern only the appropriations process and related budgeting mechanisms.")
Appellant lastly contends that the legislative process surrounding the addition of the proviso further supports the conclusion that the single subject requirement was violated. Appellant points to the fact that the proviso was added "late" in the 2016-2017 budget conference process. As Appellant points out, the supreme court has reviewed legislative history in determining whether the Legislature violated the single subject requirement. See State v. Thompson, 750 So.2d 643, 648 (Fla. 1999) ("Further, a review of the legislative history surrounding chapter 95-182 supports a finding that the chapter law does not meet the requirements of the single subject rule."). However, in Thompson, the supreme court found it clear that certain sections in a chapter law addressed two different subjects — career criminals and domestic violence. Id. Here, in contrast, the proviso, which specifically addresses appropriations, was included within the general appropriations law. Moreover, in
See also Corcoran v. Geffin, 250 So.3d 779, 785 (Fla. 1st DCA 2018) ("[A]sking the trial court to find that the Legislature was constitutionally required to appropriate specific funds for a specific purpose is akin to asking the court to dictate appropriations."); Browning v. Fla. Prosecuting Attorneys Ass'n, 56 So.3d 873, 874-75 (Fla. 1st DCA 2011) (reversing the trial court's determination that the budgetary proviso, which prohibited the payment of Florida Bar dues from funds appropriated to state agencies, was unconstitutional, where the proviso did not conflict with Florida law). In reviewing the proviso, or the Legislature's "final product," we find no violation of the single subject requirement.
For the reasons expressed herein, we reject Appellant's constitutional arguments. The trial court did not err in entering judgment in favor of Appellees in this case. We, therefore, affirm the Final Judgment.
AFFIRMED.
Ray and M.K. Thomas, JJ., concur.