Lussier v. Maryland Racing Commission

684 A.2d 804, 343 Md. 681, 1996 Md. LEXIS 115
CourtCourt of Appeals of Maryland
DecidedNovember 8, 1996
Docket96, Sept. Term, 1994
StatusPublished
Cited by102 cases

This text of 684 A.2d 804 (Lussier v. Maryland Racing Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lussier v. Maryland Racing Commission, 684 A.2d 804, 343 Md. 681, 1996 Md. LEXIS 115 (Md. 1996).

Opinions

ELDRIDGE, Judge.

The single issue before us in this case concerns the validity, as applied to a racehorse owner, of a Maryland Racing Commission regulation which authorizes the Commission to impose a monetary penalty not exceeding $5,000 upon a person subject to its jurisdiction who, inter alia, violates the Commission’s regulations.1

[683]*683I.

The petitioner, Frank P. Lussier, is a Vermont resident who purchased three thoroughbred racehorses in the spring of 1991. Later in 1991, the three horses were shipped to Maryland where they raced at the Laurel Race Course in three races on November 26, 1991, December 29, 1991, and December 31, 1991. Lussier was licensed by the Maryland Racing Commission as an owner of racehorses, and his license expired at the end of 1991. Lussier did not renew his Maryland license for 1992 or thereafter.2

[684]*684In February 1992, the Maryland Racing Commission and the Thoroughbred Racing Protective Bureau commenced an investigation with regard to the races on November 26, December 29, and December 31, to determine whether the true owner or trainer of the three horses had been concealed and whether falsified workout reports for the three horses had been published. Upon the completion of the investigation, and after a hearing before the Commission on July 1, 1992, the Commission found that Lussier had participated in “improper acts in relation to racing in violation of COMAR 09.10.01.11(A)(3);” that Lussier transferred two of his horses “from himself to the name of another person for a purpose other than the legitimate sale of the horses in violation of COMAR 09.10.01.11(A)(14);” and that Lussier perpetrated “dishonest acts in connection with his activities, responsibilities and duties on the race track, and has engaged in conduct detrimental to racing in violation of COMAR 09.10.01.25(B)(8).” In an order issued on July 24, 1992, the Commission imposed a $5,000 fine upon Lussier.3

Lussier filed an action in the Circuit Court for Baltimore County for judicial review of the Commission’s decision, challenging the administrative decision on several grounds. After a hearing, the circuit court upheld the Commission’s order imposing a $5,000 fine upon Lussier. Lussier appealed to the Court of Special Appeals, again raising numerous issues. The intermediate appellate court rejected each of Lussier’s contentions and affirmed. Lussier v. Maryland Racing Comm’n, 100 Md.App. 190, 640 A.2d 259 (1994). Lussier then filed in this Court a petition for a writ of certiorari, presenting all of the issues which he had raised in both courts below. This Court granted the petition limited to a single question, namely whether the Commission could, in accordance with its regulation, impose a fine as a sanction for misconduct absent a [685]*685statutory provision expressly authorizing the imposition of a fine.

II.

Lussier argues that it is an “elementary” principle of Maryland law that administrative agencies lack the authority to fix “penalties in the absence of specific statutory authorization from the Legislature,” and that “it has always been the Legislature’s exclusive province to fix penalties ... for transgressions of the law, either directly or via specific delegation.” (Petitioner’s brief at 10, 17). Lussier cites three cases which he claims support this alleged principle of Maryland administrative law. They are Holy Cross Hosp. v. Health Services, 283 Md. 677, 393 A.2d 181 (1978); Gutwein v. Easton Publishing Co., 272 Md. 563, 325 A.2d 740 (1974), cert. denied, 420 U.S. 991, 95 S.Ct. 1427, 43 L.Ed.2d 673 (1975); and County Council v. Investors Funding, 270 Md. 403, 312 A.2d 225 (1973). According to Lussier, since the General Assembly did not explicitly authorize the Commission to impose a fine upon a racehorse owner, the Commission’s order in this case “is a nullity” (Petitioner’s brief at 10). Lussier asserts that the Commission’s regulation authorizing the imposition of a fine, COMAR 09.10.04.03D, is invalid except as applied to those licensed racetrack operators who have been awarded racing dates. (Petitioner’s brief at 16-18). See Maryland Code (1992, 1995 Supp.), § 11-308(d) of the Business Regulation Article (expressly authorizing the Commission to impose a monetary penalty not exceeding $5,000 upon racetrack operators who, inter alia, violate the statute or the Commission’s regulations).

As pointed out by the Court of Special Appeals, Lussier v. Maryland Racing Comm’n, supra, 100 Md.App. at 203-204, 640 A.2d at 266, this Court’s prior cases relied upon by Lussier neither recognize nor support the assertion that, under Maryland law, an administrative agency lacks authority to impose a particular penalty unless it has explicit authorization from the Legislature to do so. Holy Cross Hosp. v. Health Services, supra, was not concerned with the imposition [686]*686of penalties; instead, the question in that case was whether, as a matter of statutory construction, an administrative agency’s statutory authority to regulate hospital rates extended to fees charged by physicians to hospital patients. In Gutwein v. Easton Publishing Co., supra, 272 Md. at 576, 325 A.2d at 747, the issue /was whether, .under the pertinent statutory provisions and “[i]n view of the [Human Relations] Commission’s legislative background,” the Human Relations Commission was authorized to make an award of compensatory damages to a victim of employment discrimination. Neither a penalty nor a regulation adopted by the agency was involved in the Gutwein case. The portion of County Council v. Investors Funding, supra, 270 Md. at 441-143, 312 A.2d at 246-247, relating to monetary penalties, had nothing to do with an administrative agency’s imposition of a particular type of penalty without express statutory authorization. In fact, in Investors Funding there was express statutory authorization for the agency to impose monetary penalties. The issue in that case concerned the validity of the statute in light of constitutional delegation of powers and due process principles.

Neither the Maryland cases relied on by Lussier, nor any other decisions of this Court which have been called to our attention, set forth or support a general principle that a state administrative agency lacks authority, by regulation, to fix a civil penalty for misconduct subject to its jurisdiction unless the General Assembly has expressly authorized the agency to fix that type of penalty.

Instead, the cases invoked by Lussier, as well as numerous other decisions by this Court, indicate that, in determining whether a state administrative agency is authorized to act in a particular manner, the statutes, legislative background and policies pertinent to that agency are controlling. See, e.g., Comptroller v. Washington Restaurant, 339 Md. 667, 670-673, 664 A.2d 899, 900-902 (1995); Luskin’s v. Consumer Protection, 338 Md. 188, 196-198, 657 A.2d 788, 792-793 (1995); Fogle v. H & G Restaurant, 337 Md. 441, 654 A.2d 449 (1995); Christ v. Department of Natural Resources,

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Cite This Page — Counsel Stack

Bluebook (online)
684 A.2d 804, 343 Md. 681, 1996 Md. LEXIS 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lussier-v-maryland-racing-commission-md-1996.