Chapter 23 - Administrative Agencies

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a federal, state, or local government agency established to perform a specific function. an enabling legislation by the legislative branch. when congress enacts legislation, It typically leaves implementation to an administrative agency, the agency then creates the detailed rules and regulations necessary to carry out the statute. administrative agency has the time, resources, and expertise to make the detailed decisions required for regulation. seen as "mini governments." these agencies impact almost every aspect of business operations and funding.

Administrative agency

congress creates federal administrative agencies by passing enabling legislation, which specifies the name, purposes, functions, and powers of the agency being created. federal administrative agencies can exercise only those powers that congress has delegated to them in enabling legislation. an agency's enabling statute defines its legal authority, an agency cannot regulate beyond the powers granted by the statute and It may be required to take some regulatory action by the terms of that statute.

Creation of administrative agencies

true; administrative agencies are spread throughout the government, there are administrative agencies at the state and local levels as well. administrative agencies at various levels of government work together and share the responsibility of creating and enforcing particular regulations.

administrative agencies exist at all levels of government

no arbitrary, capricious, abuse of doctrine, violate law. under this standard, parties can challenge regulations as contrary to law or as so irrational that they are not arbitrary and capricious. the standard includes factors such as whether the agency has done any of the following: 1. failed to provide a rational explanation for its decision 2. changed its prior policy without justification 3. considered legally inappropriate factors 4. entirely failed to consider a relevant factor 5. rendered a decision plainly contrary to the evidence.

agency powers act

administrative agencies exercise powers that normally are divided among the three branches of gov. agencies powers include functions associated with the legislature (rule making), the executive (enforcement) and the courts (adjudication). administrative agencies can make legislative rules, or substantive rules, that are as legally binding as laws that congress passes. also issue interpretive rules, which declare policy.

agency powers and the constitution

True

an administrative agency is seen as the 4th branch of government

when asked to review agency decisions courts historically granted deference (significant weight) to the agency's judgement. courts try to investigate if the agency's interpretation is "reasonable" and if It is courts should hold the agency's interpretation even if the court would have interpreted the law differently

deference to agency

although rule making is the most prominent agency activity, enforcement of the rules is also critical. an agency itself enforces its rules. after rules are issued, agencies conduct investigations to monitor compliance of those rules. agencies gather information through on-site inspections, such as inspecting an office, a factory, or some other business facility. agencies also utilize subpoena, compelling witnesses to appear at a hearing, as well as search warrants. after an investigation reveals a suspected violation, an agency may begin to take administrative action against an individual or organization by determining violations and resolving them through negotiated settlements without formal adjudication (the process of resolving a dispute by presenting evidence and arguments before a neutral decision maker)

enforcement and adjudication

the formulation of new regulations or rules. many rules may be adopted using the APA's notice and comment rule making procedure. notice and comment rule making involves three basic steps: notice of the proposed rule making, a comment period, and the final rule. the final rule have binding legal effect unless the courts later overturn them. failure to follow proper rule making procedures, the rule will not be binding.

explain rule making

exercises control over agencies both through the president's power to appoint federal officers and through the president's power to veto laws.

explain the executive controls

court review of agency actions.

explain the judicial controls

enabling laws, funding, investigate laws/freeze regulations before they take effect

explain the legislative controls

requires the federal government to disclose certain records to any person or entity on written request, even if no reason is given for the request

freedom of information act

requires that every portion of every meeting of an agency be open to public observation

government in the sunshine act

rather than conduct notice-and-comment rule making, agencies have increasingly been using more informal methods of policy making such as issuing interpretive rules and guidance documents. no notice/comment process. informal agency actions are exempt from the apa's requirements because they do not establish legal rights.

informal agency actions

rulemaking, enforcement, adjudication

major functions of administrative agencies

under this act, whenever a new regulation will have a significant impact upon a substantial number of small entities, the agency must conduct a regulatory flexibility analysis to measure the cost that the rule would impose on small businesses

regulatory flexibility act

allows congress to review new federal regulations for at least 60 days before they take effect. gives opponents of the rules time to present their arguments to congress. authorizes the courts to enforce the regulatory flexibility act, to ensure that federal agencies will consider ways to reduce the economic impact of new regulations on small businesses

small business regulatory enforcement fairness act

1. executive agencies - federal executive agencies include the cabinet departments of the executive branch, which assist the president in carrying out executive functions, and subagencies within the cabinet departments 2. independent regulatory agencies are outside the federal executive departments, such as the federal trade commission and the SEC.

types of agencies


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