BUL-3130 Chapter 17

body of law, drawn from various sources, that defines and regulates federal regulatory agencies and limits the exercise of authority by these agencies.

include bodies that function within a particular executive branch department (such as the Internal Revenue Service functioning within the Department of the Treasury) as well as nondepartment agencies (EPA)

- formation,
- implementation, and
- enforcement of regulations.

- Administrative agencies are charged by Congress to study potential solutions to a problem and then to exercise a legislative function by creating legally enforceable rules, known as administrative regulations, that purport to satisfy Congress's will by filling in the details of the statute.
- This policymaking function is known as rulemaking.

- investigating alleged violations of the agency's administrative regulations, and
- recommending enforcement actions such as fines and other sanctions.
- monitor compliance with regulatory requirements through inspection of the facilities and grounds of business sites under their jurisdiction

- The Securities and Exchange Commission issues licenses to certain individuals involved in public trading of stocks, or the Federal Communications Commission's licensing of television and radio stations.
- Agencies also issue permits such as those issued by the Environmental Protection Agency to control air and water pollution.

- When Congress confers a benefit to the citizenry at large, administrative agencies are the portal used by the law to actually distribute those benefits.
- Agencies are involved in the application process and distribute benefits according to law.
- For example, the Social Security Administration is responsible for distributing retirement and medical benefits to eligible citizens.

- U.S. Constitution
- Administrative Procedures Act (APA)
- Enabling Statutes
- Common Law

These powers include policymaking through:
- rulemaking,
- enforcement/licensing, and
- adjudication

- The rulemaking process is set out in the APA and is supplemented by the enabling statutes passed by Congress.
- In practice, much of an agency's rulemaking duties are carried out through informal rulemaking procedures that are permitted under the basic structure of the APA.

- Public Comment
- Protection of Small Business Owners
- Revision or Final Publication
- Judicial Challenges

A daily publication distributed by the federal government (found in major libraries) primarily used to communicate proposed agency rules, final agency regulations, and other administrative agency or executive branch announcements, such as executive orders.

The U.S. Supreme Court has ruled that agencies have broad discretion in when and whom to regulate.

Administrative agencies also regulate and administer laws

conducting inspections of businesses and individuals within their jurisdiction.

hearing where government and the private party each presents evidence in a quasi-judicial setting

an administrative law judge (ALJ) who is typically an attorney employed by the agency to adjudicate disputes.

- The losing party in an ALJ case generally has an automatic appeal to the administrative head of the agency who may overturn or affirm the ALJ's ruling.
- An adverse decision from the agency may also be challenged in a federal trial court.

The legislative, executive, and judicial branches all have various means of power that limit the authority of administrative agencies.

Although subject to confirmation by the Senate, the president has the exclusive right to nominate principal officers such as cabinet members or commissioners of independent agencies that report directly to the president.

- Congress may exercise their constitutionally granted power of the purse over government funding of particular agencies, or
- Enact legislation that restricts an agency's authority, or pass a new law to overrule an administrative regulation.

- Statutory Interpretation by Agencies
- Applying the Arbitrary and Capricious Standard

any member of the public at large who is directly affected by a particular agency action (or inaction) to bring a lawsuit against violators of a particular regulation and/or the administrative agency itself for failing to fulfill a duty imposed by statute.

compel the agency to act in a manner consistent with the enabling act or another federal statute.

- requires agencies to publish certain matters and, upon the request of an individual or agency (such as a media outlet), to allow public inspection of all other records created or obtained by the agency in the course of doing its work.
- allows private parties to sue the agency if the records are wrongfully withheld.

1. sensitive national defense or foreign policy information;
2. agency personnel matters
3. trade secrets and privileged commercial information,

Requires that agencies announce their meetings at least one week in advance and to open the meeting to the public

States frequently have agencies devoted to the regulation of parties within the state's borders for the sale of securities (selling a business entity's stock to the public), protection of the environment, regulation of banking and insurance companies, workplace safety, consumer protection, labor and employee antidiscrimination regulations.