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1 © 2004 West Legal Studies in Business A Division of Thomson Learning Chapter 43 Administrative Law
1© 2004 West Legal Studies in Business
A Division of Thomson Learning
Chapter 43Administrative Law
Chapter 43Administrative Law
2© 2004 West Legal Studies in BusinessA Division of Thomson Learning
IntroductionIntroduction
Administrative Law is the rules, orders, and decisions of federal, state, and local government agencies established to perform a specific function.
Administrative Law is the rules, orders, and decisions of federal, state, and local government agencies established to perform a specific function.
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§ 1: Agency Creation and Powers§ 1: Agency Creation and Powers
The study of Administrative Law requires an understanding of: Enabling Legislation. The Types of Agencies. Agency Powers and the Constitution.
The study of Administrative Law requires an understanding of: Enabling Legislation. The Types of Agencies. Agency Powers and the Constitution.
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Enabling LegislationEnabling Legislation
Enabling legislation is a law passed by Congress to specify the name, purposes, functions, and powers of administrative agency.
Federal administrative agencies may exercise only those powers that Congress has delegated to them in enabling legislation.
Through similar enabling acts, state legislatures create state administrative agencies.
Enabling legislation is a law passed by Congress to specify the name, purposes, functions, and powers of administrative agency.
Federal administrative agencies may exercise only those powers that Congress has delegated to them in enabling legislation.
Through similar enabling acts, state legislatures create state administrative agencies.
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Types of AgenciesTypes of Agencies
There are two basic types of administrative agencies: Executive Agencies.
• Cabinet-level departments of the Executive Branch and their sub-departments.
Independent Regulatory Agencies.• Agencies outside the major executive departments such as
the Federal Aviation Administration or the Federal Communications Commission.
There are two basic types of administrative agencies: Executive Agencies.
• Cabinet-level departments of the Executive Branch and their sub-departments.
Independent Regulatory Agencies.• Agencies outside the major executive departments such as
the Federal Aviation Administration or the Federal Communications Commission.
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Agency Powers and the ConstitutionAgency Powers and the Constitution
Administrative agencies make legislative rules, or substantive rules, that are as legally binding as laws that Congress passed.
Administrative agencies are sometimes referred to as the “fourth branch” of the U.S. government.
Article I of the U.S. Constitution authorizes delegating such powers to administrative agencies.
Administrative agencies make legislative rules, or substantive rules, that are as legally binding as laws that Congress passed.
Administrative agencies are sometimes referred to as the “fourth branch” of the U.S. government.
Article I of the U.S. Constitution authorizes delegating such powers to administrative agencies.
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§ 2: Administrative Process§ 2: Administrative Process
Administrative process includes three functions: Rulemaking. Investigation. Adjudication.
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RulemakingRulemaking
Rulemaking is the formulation of new regulation.
Notice and Comment Rulemaking involves three steps: Notice of the proposed rulemaking (NPRM). Comment Period. The Final Rule.
Case 43.1: AT&T Corp. v. Iowa Utilities Board (1999).
Rulemaking is the formulation of new regulation.
Notice and Comment Rulemaking involves three steps: Notice of the proposed rulemaking (NPRM). Comment Period. The Final Rule.
Case 43.1: AT&T Corp. v. Iowa Utilities Board (1999).
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InvestigationInvestigation
The purpose of investigations is to ensure that the rule issued is based on a consideration of relevant factors rather than being arbitrary and capricious, which include the powers to: Conduct Inspection. Issue Subpoenas.
• Subpoenas duces tecum requires production of documents.
• Subpoenas ad testificandum requires testimony.
Case 43.2: FTC v. Ken Roberts Co. (2001).
The purpose of investigations is to ensure that the rule issued is based on a consideration of relevant factors rather than being arbitrary and capricious, which include the powers to: Conduct Inspection. Issue Subpoenas.
• Subpoenas duces tecum requires production of documents.
• Subpoenas ad testificandum requires testimony.
Case 43.2: FTC v. Ken Roberts Co. (2001).
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AdjudicationAdjudication
The law provides a mechanism for administrative adjudication of suspected rule violations: Negotiate settlements. Formal Complaints. Hearing before Administrative Law Judge. Agency Orders.
The law provides a mechanism for administrative adjudication of suspected rule violations: Negotiate settlements. Formal Complaints. Hearing before Administrative Law Judge. Agency Orders.
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§ 3: Limitations on Agency Powers§ 3: Limitations on Agency Powers
All three constitutionally created branches of government have some measure of control over administrative agencies.
All three constitutionally created branches of government have some measure of control over administrative agencies.
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Judicial ControlsJudicial Controls
The Administrative Procedures Act provides for judicial review of most agency actions.
A party seeking review must demonstrate standing to sue, there must be actual controversy at issue, and have exhausted all possible administrative remedies.
Judicial review of agency action will frequently address whether the agency has acted beyond its authority or failed to discharge its responsibility.
The Administrative Procedures Act provides for judicial review of most agency actions.
A party seeking review must demonstrate standing to sue, there must be actual controversy at issue, and have exhausted all possible administrative remedies.
Judicial review of agency action will frequently address whether the agency has acted beyond its authority or failed to discharge its responsibility.
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Executive ControlsExecutive Controls
Executive branch of government exercises control over agencies through: President power to appoint federal officers, and President’s veto power.
Executive branch of government exercises control over agencies through: President power to appoint federal officers, and President’s veto power.
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Legislative ControlsLegislative Controls
The Congress exercises controls over agencies powers by: Enacting and changing enabling legislation. Determining funding for the agency. Investigating agency actions. Freezing agency enforcement efforts before they take
effect. Amending the Administrative Procedures Act.
The Congress exercises controls over agencies powers by: Enacting and changing enabling legislation. Determining funding for the agency. Investigating agency actions. Freezing agency enforcement efforts before they take
effect. Amending the Administrative Procedures Act.
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§ 4: Public Accountability§ 4: Public Accountability
A number of pieces of legislation make agencies more accountable through public scrutiny. Freedom of Information Act. Government in the Sunshine Act. Regulatory Flexibility Act. Small Business Regulatory Enforcement Fairness
Act.
A number of pieces of legislation make agencies more accountable through public scrutiny. Freedom of Information Act. Government in the Sunshine Act. Regulatory Flexibility Act. Small Business Regulatory Enforcement Fairness
Act.
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Freedom of Information ActFreedom of Information Act
This legislation requires the federal government to disclose certain “records” to “any person” on request, even if no reason is given for the request.
All federal government agencies are required to make their records available electronically.
This legislation requires the federal government to disclose certain “records” to “any person” on request, even if no reason is given for the request.
All federal government agencies are required to make their records available electronically.
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Government in the Sunshine ActGovernment in the Sunshine Act
The legislation requires that “every portion of every meeting of an agency” be open to “public observation.”
Adequate notice of meetings must be given to the public.
Closed meetings are authorized in a limited number of instances.
The legislation requires that “every portion of every meeting of an agency” be open to “public observation.”
Adequate notice of meetings must be given to the public.
Closed meetings are authorized in a limited number of instances.
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Regulatory Flexibility ActRegulatory Flexibility Act
Concern over the effects of regulation on the efficiency of businesses, Congress passed the Regulatory Flexibility Act which requires an analysis of the cost a regulation will impose on small business and must consider less burdensome alternatives.
Concern over the effects of regulation on the efficiency of businesses, Congress passed the Regulatory Flexibility Act which requires an analysis of the cost a regulation will impose on small business and must consider less burdensome alternatives.
19© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Small Business Regulatory Enforcement Fairness ActSmall Business Regulatory Enforcement Fairness Act
This Act allows Congress to review new federal regulations for at least sixty-days before they can take effect.
This Act allows Congress to review new federal regulations for at least sixty-days before they can take effect.
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§ 5: State Administrative Agencies§ 5: State Administrative Agencies
Cooperation and Conflicts between Parallel Federal and State Agencies.
Judicial Review of State Agency Actions. Case 43.3: Swift v. Sublette County Board of County
Commissioners (2002).
Cooperation and Conflicts between Parallel Federal and State Agencies.
Judicial Review of State Agency Actions. Case 43.3: Swift v. Sublette County Board of County
Commissioners (2002).
21© 2004 West Legal Studies in BusinessA Division of Thomson Learning
Law on the WebLaw on the Web
The Administrative Procedures Act (1946).Federal Web Locator.Internet Law Library (CFR).
Legal Research Exercises on the Web.
The Administrative Procedures Act (1946).Federal Web Locator.Internet Law Library (CFR).
Legal Research Exercises on the Web.
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