I've committed the following patch.

2016-09-16  Steven G. Kargl  <ka...@gcc.gnu.org>

        PR fortran/77612
        * decl.c (char_len_param_value): Check parent namespace for 
        seen_implicit_none.


2016-09-16  Steven G. Kargl  <ka...@gcc.gnu.org>

        PR fortran/77612
        * gfortran.dg/pr77612.f90: New test.


Index: gcc/fortran/decl.c
===================================================================
--- gcc/fortran/decl.c  (revision 240140)
+++ gcc/fortran/decl.c  (working copy)
@@ -920,9 +920,10 @@ char_len_param_value (gfc_expr **expr, b
 
       t = gfc_reduce_init_expr (e);
 
-      if (!t && (e->ts.type == BT_UNKNOWN
-                && e->symtree->n.sym->attr.untyped == 1
-                && e->symtree->n.sym->ns->seen_implicit_none == 1))
+      if (!t && e->ts.type == BT_UNKNOWN
+         && e->symtree->n.sym->attr.untyped == 1
+         && (e->symtree->n.sym->ns->seen_implicit_none == 1
+             || e->symtree->n.sym->ns->parent->seen_implicit_none == 1))
        {
          gfc_free_expr (e);
          goto syntax;
Index: gcc/testsuite/gfortran.dg/pr77612.f90
===================================================================
--- gcc/testsuite/gfortran.dg/pr77612.f90       (nonexistent)
+++ gcc/testsuite/gfortran.dg/pr77612.f90       (working copy)
@@ -0,0 +1,13 @@
+! { dg-do compile }
+
+program bad_len
+
+  implicit none
+
+contains
+
+  subroutine sub
+    character(len = ICE) :: line ! { dg-error "INTEGER expression expected" }
+  end subroutine
+
+end program
-- 
Steve

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