Chapter 17: Administrative Law

Appeals

-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 court Complaint- Answer-Hearing before ALJ- Order of ALJ (fine, cease and dicist order)- Appeal to Governing board of agency - final agency order-appellate court for review of agency decision- court order

Notice and Comment

1. Notice of proposed rule published in Federal Register 2. Public Comment 3. Revision or Final Publication Judicial or Legislative Challenges Congress can overturn a regulation Court could say that the law is unenforceable

Judicial Review

APA creates jurisdiction in federal court for judicial review of AA actions. Courts will set aside rules or decisions that are unreasonable however... Chevron: 1984 Supreme Court case established standard for court to use when reviewing agency's rules or decisions. Courts should give significant weight to the agency's analysis of the facts and to the agency's interpretation of its own legal authority as long as it is reasonable. Deference court should not substitute its judgement for that of the agency.

Definition, Function and Sources of Administrative Law

Admin Law: body of law, drawn from various sources, that defines and regulates federal regulatory agencies and limits the exercise of authority by these agencies. Federal Regulatory Agencies: include bodies that function within a particular executive brand department (such as the IRS functioning within the Department of the Treasury) as well as non-department agencies (EPA)

Policy-making

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

Licensing and Permitting

Administrative agencies may regulate and administer laws through licensing The securities and exchange commission issues licenses to certain individuals involved in public trading of stocks or Federal Communications Commissions 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. Need a license to cut hair, operate factory, do nails, AA or permit

Investigation and Enforcement

Agency responsibility and authority includes: -monitoring compliance with regulatory requirements through inspection of the facilities and grounds of business sites under their jurisdiction -------voluntary compliance or agency authorized to use search warrants and subpoenas (sometimes need a search warrant but not always) - investigating alleged violations of the agency's administrative regulations - recommending enforcement actions such as fines and other sanctions, including forcing the closure of a business The AA can control if you are in business or not Health department - AA

Executive Branch

Appointments Clause - 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

Private Citizen Suits

Citizen Suits - any member of the public who is directly affected by a particular agency action (or inaction) can bring a lawsuit against ---- a private party as violators of a particular regulation (ex. failure to comply with environmental regulations) ----the AA itself for failing to fulfill a duty imposed by statute Citizen suit provisions may only be used to compel the agency to act in a manner consistent with the enabling act or another federal statute.

Congress (Legislative Branch)

Congress may exercise their constitutionally "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.

Enabling Legislation (Statutes)

Designates agency's Name Purpose Function Power- delegated from Congress; includes legislative, executive, and judicial functions. Agency cannot exceed power granted in enabling legislation.

Administrative Law at the State Level

States frequently have agencies devoted to the regulation of parties within the states borders for the sale of securities, (selling a business entities stock to the public) protection of the environment, regulation of banking and insurance companies, workplace safety, consumer protection, labor and employee anti-discrimination regulations. Licensing AA is at the federal, state, and local level.

Limits of Administrative Agencies

The legislative, executive, and judicial branches all have various means of power that limit the authority of administrative agencies. Congress is like mom and dad they do everything create agency kill agency override agency control money

Rule Making

The rule-making process is set out in the APA and is supplemented by the enabling statues passed by congress. In practice, much of an agency's rule-making duties are carried out through informal rule-making procedures that are permitted under the basic structure of the APA Notice and Comment Rule-making 3 Step Process: 1. Propose Law (Notify public/federal register 2. Public Comment 3. Revision of Final Publication

Scope of Administrative Agency Power

These powers include policymaking through: rule-making -legislative enforcement/licensing and -executive adjudication - judicial not an official branch of government but they make laws,. invest/enforce law, determine outcome of laws

Sources of Administrative Law

US Constitution Administrative Procedures Act (APA) Enabling Statutes Common Law

Dodd-Frank Act

a law enacted in the aftermath of the financial crisis of 2008-2009 that strengthened government oversight of financial markets and placed limitations on risky financial strategies such as heavy reliance on leverage

Adjudication

hearing where government and the private party each presents evidence in a quasi-judicial setting In most agencies, the presiding officer is an Administrative Law Judge (ALJ) who is typically an attorney employed by the agency to adjudicate disputes -works relatively well -dispute with AA -ALJ works for AA -1st appeal goes back to AA -3rd appeal goes to court proceding

CFPB (Consumer Financial Protection Bureau)

wanted congress to pass law to override the decision -democrats were in office -once parties switch the republicans overturned CFPB within a few months Dodd-Frank is a statute passed by Congress that, among other things, serves as the enabling legislation that created the CFPB, which is an administrative agency.