BUSI 301 Week 6: Ch. 17

Refers to both the law made by administrative agencies and the laws and regulations that govern the creation, organization, and operation of administrative agencies.

Governmental bodies, including department, non-department, and independent agencies, that have the authority to implement and administer particular regulations.

Although the agencies are primarily thought of as part of the _______________ branch and, therefore, exercise ________________ powers to enforce federal laws related to a particular agency's jurisdictional expertise, they also exercise important legislative and judicial functions as well. (Hint: the blanks are the same word.)

The legislative function of administrative agencies, whereby they create legally enforceable rules in order to fill in the details of a statute.

Administrative agencies are frequently charged by Congress to study potential solutions to a problem and then to exercise a legislative function by creating legally enforceable rules, known as _________________ _________________.

The judicial function of administrative agencies, whereby the agencies make policy. Administrative law judges hear cases brought before the specific agency.

Many administrative agencies also have an agency enforcement division devoted to _________________ alleged violations of the agency's administrative regulations and recommending enforcement actions such as fines and other sanctions. Agencies have a wide range of discretion as to when and how they enforce regulations against a violator.

Administrative agencies also monitor __________________ with regulatory requirements through inspection of the facilities and grounds of business sites under their jurisdiction.

Some administrative agencies also are responsible for _________________ and _________________ in a wide variety of areas, including licenses for professionals and industries.

When Congress confers a benefit to the citizenry at large, administrative agencies are the _________ used by the law to actually distribute those benefits. Agencies are involved in the application process and distribute benefits according to law. These benefits include loan guarantees for students, medical care for the poor and elderly, compensation for workers laid off by their employers, and many other federal programs.

Administrative law is not thought of as a _____________ body of statutes that govern administrative agencies. Rather, administrative law is a combination of four distinct sources of law that operate in tandem: the U.S. Constitution; the Administrative Procedures Act (APA); enabling statutes; and common law.

The U.S. __________________ places limits on the type of powers that agencies may exercise and also places limits on the methods that agencies may employ in carrying out their duties.

Ex. Due Process Clause and Fourth Amendment search warrant requirement

The __________________ __________________ ________ (APA) of 1946 is a federal statute that imposes specific procedural structures and due process requirements on administrative agencies' duties of rulemaking, adjudication, and other agency functions. The APA also provides for the judicial review of agency actions and determinations.

A law passed by Congress when it is establishing an administrative agency; serves as the source of the agency's authority and describes the agency's scope and jurisdiction over certain matters.

Established the Occupational Safety and Health Administration (OSHA)

Mission is prevention of workplace injuries and the assurance of safe working conditions for employees.

Enabling acts are also used by Congress to ____________ an agency with certain additional responsibilities or to provide additional authority for the agency in a particular area of need.

Prior to the establishment of the APA, a body of _______________ law that regulated administrative agencies existed. While much of the _______________ law has been codified through the APA, courts sometimes still refer to the common law in applying or interpreting the APA. (Hint: same word for both blanks.)

1. The U.S. Constitution
2. the Administrative Procedures Act (APA), and
3. enabling statutes
4. Common law (plays a minor role)

1. rulemaking
2. enforcement
3. licensing, and
4. inspection; and adjudication

Administrative agencies are charged with developing _________ designed to facilitate the federal government's administration of the law and programs as set down in federal statutes.

The rulemaking process is set out in the Administrative Procedures Act (APA) and is supplemented by the enabling statutes passed by Congress. In practice, many of an agency's rulemaking duties are carried out through _______________ rulemaking procedures that are permitted under the basic structure of the APA.

Despite its name, _____________ rulemaking actually involves a procedure set down in the APA that is centered on the concepts of notice, public comment, publication of a final rule, and the opportunity to challenge a rule in court.

_____________ rulemaking is used only when Congress has specifically indicated in the enabling statute that the agency rules must be made "on the record after a hearing." In the case of ____________ rulemaking, the agency is required to engage in an extensive hearing process outlined in the APA to develop the rules. ______________ rulemaking is very cumbersome and rarely used.

Depending on the mandates in the enabling statute, the agency begins to study and research the various alternatives for achieving the goals set by Congress. In some cases, such as in environmental regulation, much of the study and research function is performed by government scientists or outside contractor experts who provide data and conclusions to regulatory policymakers in the agency.

After ___________ and study, the agency drafts a proposed rule that purports to achieve one or more objectives set out in the enabling statute.

The APA requires that notice of proposed rulemaking be published in the Federal ____________ and that the notice must include "actual terms, substance and description" of the proposed rule.

_________________ are also required to publicly disclose any studies, reports, data, or other pertinent material that the agency relied upon in creating the proposed rule.

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.

Once the proposed rule has been published in the Federal Register, the agency must then give time for the public to _______________. In fact, the APA requires that the affected parties be allowed to participate in the rulemaking through submission of their own research and findings and that the agency make a good faith effort to study anything submitted and to consider the arguments made in the _______________ period. (Hint: 1 word for both blanks.)

(1) various factions from business and industry (such as the National Manufacturers Association),

(2) professional associations that represent large blocks of constituents (such as the National Association of Realtors), and

(3) public advocacy groups (such as the Natural Resources Defense Council).

The _________________ _______________ ________ (_______) of _________, as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996, requires agencies to ask for and consider regulatory proposals that address the size of the businesses or other organizations subject to regulation. When a proposed regulation will have a significant economic impact on a substantial number of small businesses, the _______ requires, among other things, that agencies analyze and take into consideration small business concerns.

__________ the comment period has ended, the agency may either revise the rule or simply publish the final rule in the Federal Register.

If the agency revises the rule between the time that it was originally proposed and the time that it is published as final, there is generally ____ legal obligation to provide an additional comment period.

As a practical matter, agencies publishing controversial proposed rules may opt for a __________ comment period, but there is no legal mandate to do so.

_______ exception to this rule occurs when the agency's revised rule is a substantial or material alteration of the originally proposed rule.

Courts have given agencies broad latitude in publishing a revised final rule __________ an additional comment period so long as the revisions are a __________ ______________ of the originally proposed rule. Revisions that stay within the original scope of the proposed rule do not trigger the requirement of a second comment period.

When publishing the final rule, the agency is required by the APA to include "a concise ____________ statement of basis and purpose." This statement is used to meet the legal requirement that the decision be based on reasoned decision making and not made arbitrarily or capriciously. The agency must also state its conclusions on major issues of fact or policy that were used in its decision making when issuing the final rule. Agencies also typically include an effective date in the final rule as well.

Once it is in effect, the rule is called a ____________ and is published in the Code of Federal Regulations (CFR).

A rule that is in effect, is published in the Code of Federal Regulations, and has the force of a law.

In 1990, Congress passed the _____________ _______________ _____, which provides an alternative to normal rulemaking policies in cases where it is possible that various cooperating parties could ultimately reach an agreement on the negotiated proposed rule.

After the final rule is ______________, the APA allows adversely affected parties to challenge the final rule in court.

Courts apply the ______________ and _______________ standard when reviewing a final rule.

That is, for the rule to pass judicial muster, the evidence must show that the agency made its final decision based on a consideration of relevant factors without any __________ errors of judgment and that its process was consistent with the APA procedural requirements.

The right to judicial review of final rules is a relatively ____________ one, and courts give great deference to agency authority in the area of rulemaking.

Failure to exercise honest judgment instead of reasoned consideration of all relevant factors.

The function of administrative agencies whereby they investigate alleged violations of their administrative regulations and recommend enforcement actions; generally carried out through an agency's Office of General Counsel. In deciding when and whom to regulate, the agencies have prosecutorial discretion that is practically unreviewable by the judiciary.

Agencies have broad discretion as to when and whom to regulate. This authority, known as the agency's

The task of issuing a license authorizing a business or industry to do something.

Once a company is licensed, the agency may impose fines or restrictions upon the ______________ for any violation of agency regulations.

One of the more high-profile examples of an agency that regulates through licensing is the _______________ ________________________ ________________ (FCC), which issues licenses for use of broadcast frequencies.

Administrative agencies at the state level often issue ___________________ licenses and regulate professionals such as attorneys and physicians, as well as occupations such as those of hairstylists and contractors.

The act of monitoring a business's compliance with administrative regulations. An administrative agency ordinarily secures a warrant and then enters and inspects the business's premises.

However, certain businesses are classified as _____________________ regulated, and, therefore, the Supreme Court has fashioned an exception to the warrant requirement that covers situations in which the agency conducts regularly scheduled inspections pursuant to a rule.

Courts are highly _________________ to agency decisions involving how and when an agency enforces a regulation.

(1) keep certain records for inspection,

(2) turn over relevant documents that may be useful in determining compliance with a particular rule, and

(3) request statements or other information from the business's principals or managers.

Many (but not all) administrative agencies have authority to ________________ matters under their jurisdiction.

An individual, typically an attorney, who is employed by an agency to adjudicate disputes.

____________________ is a hearing in which the government and the private party each presents evidence in a quasi-judicial setting.

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.

Although the powers delegated to administrative agencies are broad, it is important to remember that all administrative agencies, including independent agencies, are limited in their authority by the ________-______ system of the federal government. The legislative, executive, and judicial branches all have various means of power that limit the authority of administrative agencies.

From a structural perspective, administrative agencies are extensions of the ____________ branch's authority to carry out the legislative mandates, and the Supreme Court has acknowledged that the president of the United States has some inherent general right to exercise power over administrative agencies in a variety of ways.

Has power from Appointments Clause and of budgetary control

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

Although not specifically articulated in the Constitution, the Supreme Court has held that the president also has the power to ____________ any principal officers at any time with or without cause and without any congressional approval.

For the last several decades, presidents have exercised ___________ power over administrative agencies to accomplish the president's public policy objectives.

OMB was assigned to encourage agencies to be as cost-conscious as possible when imposing regulatory schemes on certain industries. This executive order is thought of as direct power over the agencies because the OMB reports directly to the president.

Although the U.S. Supreme Court narrowed congressional review of agency actions in the famous 1983 case of _____ v. __________, Congress still retains significant power to influence, amend, or void actions of an administrative agency.

In 1996, Congress amended the __________ to restore its own authority to cancel an agency's final rule if
(1) both houses agree,
(2) they pass a resolution to overrule within 60 days, and
(3) the overruling resolution is presented to the president.

Congress also has oversight over administrative agencies by virtue of the Senate's power of ___________ and _______________ in the appointment of certain high-ranking agency officers.

But the APA also authorizes courts to void agency actions if the agency has exceeded its _______________ authority or if agency actions have been taken without adhering to the statutorily established _______________.

In 1984, the Supreme Court adopted the _____________ test as the framework to analyze the validity of administrative agency statutory interpretation and action. First, courts look to the language of the statutory authority given to the agency by Congress.

The broad judicial benchmark used to determine whether an agency's actions were a result of a reasoned decision-making process.

A heightened standard, known as the _____________ ________________ test, applies only in a relatively small number of cases where the formal rulemaking process has been required by the enabling act.

The principle that all movement and content on the Internet should receive equal treatment.

In that case, the Court ruled that agency action was arbitrary and capricious if the agency

(1) relied on factors that Congress had not intended it to consider,

(2) failed to consider an important aspect of the problem,

(3) offered an explanation for its decision that ran counter to the evidence before the agency, or

(4) offered an explanation that was so implausible that it could not be ascribed to a difference in view or the product of agency expertise.

Because administrative agencies are granted broad powers and discretion, Congress has developed several ___________________ to make agencies accountable to the public and to make their work as transparent as possible. This is accomplished through statutorily authorized citizen suits as well as mandatory-disclosure and open-meeting laws.

Lawsuits initiated by members of the public who are directly affected by an agency action and brought against violators of the regulation and/or the administrative agency itself for failing to fulfill a duty imposed upon it.

In terms of suits against the government, it is important to realize that citizen suits cannot be used to attack the substance of a regulation that has been properly _____________________. Citizen suit provisions may be used only to compel the agency to act in a manner consistent with the enabling act or another federal statute.

the Freedom of Information Act (FOIA)

the Government in Sunshine Act.

gives the public the right to examine a great many government documents.

requires that certain agency meetings be open to the public.

Act that was passed (and amended in 1974) to open up certain agency records for public inspection.

(1) sensitive national defense or foreign policy information;

(2) agency personnel matters or agency policies on purely administrative issues, such as schedules, performance reviews, records related to personnel, medical files, and other private matters; and

(3) trade secrets and privileged commercial information, such as a secret process or device submitted by a business to the agency.

that agencies announce their meetings at least one week in advance and open the meetings to the public unless a meeting falls within one of the ________________________ in ___________________ Act exceptions. However, the law does not apply to meetings that are purely consultative in character or that concern investigatory or adjudication matters.

States often have their own versions of _________ agencies.

Federal and state agencies also share information and work together on ________ operations.

State administrative law is very similar to the federal _____________ in terms of how regulations are developed, implemented, and enforced.

Government or administrative agencies are governed by a body of laws and regulations known as ________________ law.

Administrative agencies enforce law through their ______ powers, but also have legislative and judicial functions.

Using their policymaking function known as ______________, administrative agencies exercise a legislative function by by creating rules or regulations. (Please use one word per blank.)

Administrative law is composed of all of the following: _______. (Check all that apply)

Administrative agencies have many powers within the scope of authority in their enabling statutes, including: ______. (Check all that apply)

The body of law that creates and governs government (administrative) agencies is known as: ______.

The agency _________________ process, prescribed by the APA, creates rules to facilitate agency functions. (Please use one word per blank.)

Administrative agencies exert powers and functions similar to those of which branches of government? (Check all that apply.)

Administrative agencies exert their legislative powers through: ______.

Agencies make rules under a process that includes notice, public comment, and publication of the final rule when they engage in: ______.

Administrative law is not a separate body by itself, but is drawn from: ______.

Before developing a new rule, an agency will often engage in ______ and research to collect data related to the goals of the rule.

Powers within the scope of an agency's enabling legislation include making policy through _______________, as well as through enforcement, licensing, inspection, and adjudication. (Please use one word per blank.)

What action will an agency take after conducting research into various alternatives to meet the objectives of its enabling statute?

Agency rulemaking creates _____________ or regulations that allow the agency to complete its authorized duties.

Agencies must publish public notice of its proposed rules, including: ______.

The process of agency rulemaking that requires hearings and a record of decision making is: ______.

The first step in developing a new rule is often: ______.

The _____________ ____________ publication is used to publish proposed rules, final agency regulations, and other administrative announcements.

After proposed rules are published, they are available for input from interested stakeholders in the public ______ period.

Agencies make rules under a process that includes notice, public comment, and publication of the final rule when they engage in: ______.

The economic costs of agency rules on small business must be examined under the _________________ Flexibility Act or RFA.

Agencies often conduct _____________ using either their own scientists or outside contractors in order to gather data before making new rules.

After the published rule is available for public comment, the agency will publish the __________ rule.

Agencies publish their proposed rules and final regulations in the: ______.

An agency does not have to publish a revised rule for additional public comment, unless there is a substantial or ______ change from the initial proposed rule.

The Regulatory Flexibility Act (RFA) requires agencies to investigate the economic impact of their rules on small: ______.

A final rule published in the Code of Federal Regulations (CFR) is called a(n): ______.

After the public comment period, agencies may ______ the proposed rule or may publish the ______ rule.

A proposed ______ is the first attempt by the agency to meet the objectives of its enabling statute.

If a final rule is challenged by an affected party, the court will apply what standard in its review of the rule?

When an agency revises a proposed rule, the agency is required to seek additional public comment only if: ______.

How much latitude are agencies allowed in their choices of enforcement?

In most agencies, the officer who conducts hearings is known as an administrative ______ judge or ALJ.

The powers of administrative agencies are limited by _________ branches of the government.

After the published rule is available for public comment, the agency will publish the _________ rule.

Administrative agencies help to carry out legislative mandates as a part of the ______________ branch.

Agencies have broad discretion as to when and whom they will prosecute. This authority is known as the agency's ________________ _______________.

A(n) ______ is a administrative hearing in which the government and the private party each present evidence in a quasi-judicial setting.

Congress can exert its so-called power of the ___________ to control agency actions by limiting their budgets.

Courts may set aside agency actions that: ______.

Administrative agencies are generally considered an extension of the ______ branch of government.

In interpreting the enabling statute of an administrative agency, courts first examine the plain language, under the: ______.

In what ways can Congress exert power over administrative agencies? (Check all that apply.)

Under the APA, agency actions may be voided by a court if the actions are beyond the statutory ___________________ of the agency.

Many enabling statutes provide a process called ______ to allow possible redress for members of the public who are impacted by the violation of agency regulations.

The Freedom of Information Act (FOIA) and the Government in the Sunshine Act help to provide ______ in agency actions.

Under the ______ test, courts look to the language of the ______ statutes to determine whether agency actions are proper.

Agencies similar to those in the federal government are often also found at the _________ level.

______ agencies wield great power, so Congress has created safeguards to protect the: ______.

A(n) ______ suit is a lawsuit brought by an individual citizen against a violator of a regulation, or against the agency itself in order to: ______.

Transparency of agency actions is provided by the Freedom of Information Act (FOIA) and by the ______.

Administrative agencies are found in: ______. (Check all that apply)