After reading this chapter, you will be able to answer the following questions: What is administrative law? What is an administrative agency? What types of powers do administrative agencies have? How and why are administrative agencies created? What is the difference between an executive agency and an independent agency? What is the Administrative Procedures Act?
Chapter 44 Administrative Law Copyright © 2015 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education Introduction to Administrative Law Administrative Law: Consists of substantive and procedural rules created by administrative agencies Administrative Agency: Any body created by the legislative branch (Congress) to carry out specific duties Referred to as the unofficial “fourth branch of government” First federal administrative agency: Interstate Commerce Commission (ICC) Created by Congress through “enabling legislation”, a statute that specifies names, functions and specific powers of agency Investigative powers include power to issue subpoena/subpoena duces tecum Administrative Law Judge: Presides over administrative hearing; may attempt to encourage parties to settle, but has power to enter binding decision 442 Types of Administrative Agencies Executive Agency: Generally within executive branch of government, under a “cabinetlevel” department; also referred to as “cabinetlevel” agency Independent Agency: Governed by board of commissioners appointed by president, with “advice and consent” of U.S. Senate Examples include Federal Aviation Agency (FAA) and Food and Drug Administration (FDA) Examples include Federal Trade Commission (FTC) and Securities and Exchange Commission (SEC) Hybrid Agency: Characteristics of an executive and independent agency Example: Environmental Protection Agency (EPA) 443 Exhibit 441: Major Administrative Agencies Independent Agencies Commodity Futures Trading Commission (CFTC) Consumer Product Safety Commission (CPSC) Equal Employment Opportunity Commission (EEOC) Federal Communications Commission (FCC) Federal Trade Commission (FTC) Interstate Commerce Commission (ICC) National Labor Relations Board (NLRB) Nuclear Regulatory Commission (NRC) Securities and Exchange Commission (SEC) 444 Exhibit 441: Major Administrative Agencies (Continued) Executive Agencies Federal Deposit Insurance Corporation (FDIC) General Services Administration (GSA) International Development Corporation (IDC) National Aeronautics and Space Administration (NASA) National Science Foundation (NSF) Occupational Safety and Health Administration (OSHA) Office of Personnel Management (OPM) Small Business Administration (SBA) Veterans Administration (VA) 445 Administrative Procedures Act (APA) Imposes specific guidelines on agency rulemaking: Informal RuleMaking (“NoticeandComment” RuleMaking): Proposed rule published in Federal Register, with opportunity for public comment Formal RuleMaking: Publication of proposed rule in Federal Register, then formal public hearing (including complete transcript) Hybrid RuleMaking: Combines best features of formal and informal rule making; proposed rule published in Federal Register, with opportunity for public submission of written comments, then informal public hearing Exempted RuleMaking: Agency decides whether public participation allowed; includes rulemaking proceedings with regard to “military or foreign affairs,” “agency management or personnel,” and “public property, loans, grants, benefits, or contracts” of an agency 446 Stages of Informal RuleMaking Agency drafts rule in consultation with interested parties Proposed rule published in Federal Register Interested parties can file written comments on written draft within 30day period from publication in Federal Register Final draft of rule published in Federal Register 30 days before it takes effect; statement of its purpose and costbenefit analysis must accompany its publication Agency receives feedback from interested parties during 30day period and makes decision on whether final draft should be rewritten. If not, it becomes law 447 Administrative Procedures Act (APA) (Continued) Interpretive Rules: Rules that do not create any new rights/duties; instead, a detailed statement of agency’s interpretation of existing law, and the steps a party must take to comply with existing law Policy Statements: General statements about directions of agency regarding rulemaking or enforcement activities; no binding impact; do not directly affect legal rights/responsibilities Regulated Negotiation (“Regneg”): Mediated agreement (involving competing interest groups) on agency rulemaking 448 Limitations on Agency Powers Political Statutory Judicial Informational 449 Freedom of Information Act (FOIA) Requires that federal agencies publish in Federal Register places where public can access agency information Any individual or business may make a FOIA request Information may be obtained regarding how agency acquires and spends its money Statistics and/or information collected by agency on a particular topic is available Citizens entitled to any records government has about them Exemptions: National Security Internal Agency Matters (Example: Personnel Issues) Criminal Investigations Financial Institutions Individual’s Private Life 4410 Government in Sunshine Act Requires that agency meetings be open to public if agency headed by collegiate body (i.e., two or more persons, with majority appointed by president upon “advice and consent” of Senate) Such agencies must keep records of closed meetings 4411 Privacy Act Federal agency may not disclose information about an individual to other agencies/organizations without that individual’s written consent 4412 ...Introduction to Administrative Law Administrative Law: Consists of substantive and procedural rules created by administrative agencies Administrative Agency: Any body created by the legislative branch ... Investigative powers include power to issue subpoena/subpoena duces tecum Administrative Law Judge: Presides over administrative hearing; may attempt to encourage parties to settle, but has power to enter binding decision 442 Types of Administrative Agencies... Occupational Safety and Health Administration (OSHA) Office of Personnel Management (OPM) Small Business Administration (SBA) Veterans Administration (VA) 445 Administrative Procedures Act (APA) Imposes specific guidelines on agency rulemaking: