Administrative LawBureaucratic Politics

Introduction

• Administrative Law – body of law that pertains to the legal authority of public administrative entities to perform their duties (today) as well as to provide necessary limits and controls (judicial control).• Guided primarily by two forces:

• Judicial decisions (precedent)• Administrative Procedures Act of 1946

• Typical Subject Matter:• Constitutional Authority of Agencies

• Delegation• Statutory Authority of Agencies• Access to Information Held by the Government• Procedural Requirements of Agencies

• APA• Rulemaking• Adjudication• Enforcement

• Judicial Review of Agencies• Liability• Public Employment and Rights of Public Workers

Administrative Law and Due Process

• 5th and 14th Amendments to the Constitution.• “nor be deprived of life, liberty, or property, without due process of law” (5th Amendment)• “Nor shall any State deprive any person of life, liberty, or property, without due process of law;

nor deny to any person within its jurisdiction the equal protection of the laws.” (14th Amendment)• Procedural Due Process (procedural fairness) – set of procedures designed to ensure

fairness in judicial or administrative proceedings.• Highlights three values:

• Public participation• Fair procedures• Judicial review of action• See list on Milakovich and Gordon pg. 472

• When due process is triggered, the question is what process is due?• Substantive Due Process – law must be fair in content and application.• Why is due process important?

• Ensures that agencies do not operate in an arbitrary and capricious manner.

ADMINISTRATIVE LAW: CASE LAW

Londoner v. Denver, 210 U.S. 373 (1908)

• Facts:• The city of Denver was given the power by the Colorado legislature to assess taxes to

make local improvements.• The assessment of taxes as it relates to local improvements can be laid upon

“property specially benefited.”• In this present case, a tax was assessed on specific property owners to cover the

paving of a road.• The Board provided an opportunity for the affected parties to submit written

comments, but provided no oral hearing.• Legal Question:• Does the failure of the Board of Equalization to provide a hearing to parties on whom

a tax would be assessed violate the due process clause of the 14th Amendment?• Holding:• Yes. Reversed.

Londoner v. Denver, 210 U.S. 373 (1908)

• Vote:• 7 (Moody, Harlan, Brewer, White, Peckham, McKenna, Day) – 2 (Fuller, Holmes)

• Legal Reasoning:• Who is conducting the tax assessment in this case?

• A subordinate body (agency) is conducting the estimate.• Why does this matter?

• The Constitution does not impose many restrictions on the states, but when the state delegates the responsibility to a subordinate body, more is required.

• Why is more required in Colorado?• The law does not afford citizens the opportunity to challenge assessments in court.

• So what process is therefore due?• “…shall have the right to support his allegations by argument, however brief: and, if need be, by

proof, however informal.”• In other words, a hearing of some sort is required.

• The assessment is therefore null and void as it violates the due process clause of the 14 th Amendment.

Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441 (1915)

• Facts:• Assessor of Denver was ordered to increase the valuation of all taxable property in

Denver by 40% (subordinate board).• The purpose of the increased valuation was to make up for and put property in line with

the values assessed in the rest of the state.• No hearing was provided, but Bi-Metallic Investment Company argued that it should

have been.• Legal Question:

• Does the failure of the Board of Equalization to provide a hearing to parties on whom a tax would be assessed violate the due process clause of the 14th Amendment?

• Holding:• No. Affirmed.

• Vote:• 9 (White, McKenna, Holmes, Day, Hughes, Van Devanter, Lamar, Pitney, McReynolds)

Bi-Metallic Investment Co. v. State Board of Equalization, 239 U.S. 441 (1915)

• Legal Reasoning:• Is a hearing required for all members of the affected class to be heard?

• No.• Why does Holmes argue that no hearing should be provided?

• All in Denver were affected equally by the increase in taxation on property.• It is impracticable to have every member affected by this should have a “direct voice in its

adoption.”• It is a general statute that affects everyone in Denver equally.

• How should those affected have their voice be heard instead?• “Their rights are protected in the only way they can be in a complex society, by their power,

immediate or remote, over those who would make the rule.”• What does Holmes mean?

• Protection in these matters comes from voting• What is the result of the case?

• The due process clause of the 14th Amendment does not require a hearing if the rule applies to the mass public it is impractical that all should have a direct voice.

Discussion

• Is this inconsistent with Londoner?• No, in Londoner the individuals were exceptionally

affected (singled out) so due process is triggered.• In Bi-Metallic no one is treated exceptionally so due

process is not due.• So what are these cases highlighting, why are we going

over them?• They highlight various agency procedures.

Agency Procedures

• What kind of government function does each of these cases seem to represent?• Londoner = judicial power• Bi-Metallic = legislative power.

• These cases highlight the two types of agency procedures: • Rulemaking – quasi-legislative power delegated to agencies by Congress.

• Agency statement of general applicability and future affect.• Has the force of law• Example: Your rules!

• Adjudication – quasi-judicial power delegated to agencies by Congress under which agencies apply existing laws or rules to particular cases.• Decisions have the binding force of law• Use light switch example to highlight this dichotomy

• These processes answer the question of what process is due?• If you are exceptionally affected by an action of an agency, you are due adjudication (hearing).• If the agency passes a rule that has general applicability, it must follow rulemaking procedures.

• These processes are outlined in the Administrative Procedure Act of 1946.

Functions of Agencies

• Administration• Establish policies under the president’s direction• Provide services to citizens

• Enforcement• Prosecute violations of bureaucratic, legislative, or

judicial policy• Regulation• Establish policy as a response to legislation• Price controls• Licensing (tattooists, egg graders, etc.)• Standards

Functions of Agencies

  Agency Procedures

Agency Activities Rulemaking Adjudication

Policy Making (regulation) Always √ Sometimes √

Enforcement NEVER Always √