Chapter 5
Adjudication
a proceeding in which an administrative law judge hears & decides issues that arise when an administrative agency charges a person/firm with an agency violation
Legislative Rule/Substantive Rule
an administrative agency rule that carries the same weight/are as legally binding as a congressionally enacted statute
Rules of Chevron (new standard)
(1) Did Congress directly address the issue in dispute in the statute? If so, the statutory language prevails. (2) If the statute is silent or ambiguous, is the agency's interpretation "reasonable"? If it is, a court should uphold the agency's interpretation, even if the court would have interpreted the law differently. *in order for agency interpretations to be assured Chevron deference, they must meet the formal legal standards for notice-&-comment rulemaking
Legislative Controls (over admin. agencies)
- Congress gives power to an agency through enabling legislation - can take power away or abolish an agency through subsequent legislation - can investigate the implementation of its law & agencies - can "freeze" enforcement of most federal regulations before they take effect
Delegation Doctrine
- a doctrine based on the U.S. Constitution - construed to allow Congress to establish administrative agencies & delegate to them the power to make & implement laws
Administrative Agency
- a federal or state gov't. agency established to perform a specific function - creates detailed rules & regulations necessary to carry out a given statute - sometimes referred to as the 4th branch of U.S. gov't b/c they function so independently
Enabling Legislation
- a statue enacted by Congress that authorizes the creation of an administrative agency - specifies the name, purposes, functions, & powers of the agency being created - i.e.: Federal Trade Commission (FTC) was created by Congress in the FTC Act
Small Business Regulatory Enforcement Fairness Act (SBREFA)
- allows Congress to review new federal regulations for at least 60 days before they take effect - this period gives opponents of the rules time to present their arguments to Congress - authorizes the courts to enforce the Regulatory Flexibility Act
Fair Notice: APA
- an agency may change the way it applies a certain regulatory principle---before the change can be carried out, the agency must give fair notice of what conduct will be expected in the future
Subpoena: duces tecum (bring it with you)
- compels an individual or organization to hand over books, papers, records, or documents to the agency
Judicial Controls (over admin. agencies)
- courts' review of agency actions---under Administrative Procedure Act (APA)
Federal Register
- daily publication of the executive branch that prints gov't. orders, rules, & regulations - notices of new rules published here too
Executive Administrative Agencies
- exist w/in the cabinet departments of the executive branch - subject to the authority of the president--president can appoint & remove officers - i.e. the Food & Drug Administration is w/in the U.S. Department of Health & Human Services
Hearing Procedures
- frequently, disputes are resolved through informal adjudication proceedings - a formal hearing resembles a trial: difference is that much more info including hearsay can be introduced as evidence in admin. hearing - prior to the hearing, parties are permitted to undertake discovery - must comply with the procedural requirements of the APA & meet the constitutional standards of due process - the burden of proof in an enforcement proceeding is placed on the agency
Article I Section I
- grants all legislative powers to Congress - requires Congress to oversee the implementation of all laws
The Chevron Case
- issue: whether the courts should defer to an agency's interpretation of a statute giving it authority to act - the U.S. Supreme Court held that the courts should defer to an agency's interpretation of law as well as fact - Court's decision created new standard for courts to use when reviewing agency interpretations of law
Final Rule
- must contain a "concise, general statement of...basis & purpose" that describes reasoning behind rule - may change the terms of the proposed rule in light of comments, but not too radically or you have to start the process all over - have binding legal effect
How do Admin. Agencies enforce their rules?
- often, the agency itself enforces its rules - agencies conduct investigations/inspections to monitor compliance with those rules/terms of the enabling statute
Subpoena: ad testificandum (to testify)
- ordinary subpoena - a writ.order compelling a witness to appear at an agency hearing
Independent Regulatory Agencies
- president has less power--officers serve fixed terms & cannot be removed w/o just cause - i.e. Federal Trade Commission, Securities & Exchange Commission, Federal Communications Commission
Executive Controls (over admin. agencies)
- president's power to appoint federal officers -president's veto power: can veto enabling legislation presented by Congress or congressional attempts to modify an existing agency's authority
Administrative Law Judge (ALJ)
- presides over an administrative agency hearing - has the power to administer oaths, take testimony, rule on questions of evidence, & make determinations of fact
Administrative Procedure Act (APA)
- provides for judicial review of most agency decisions - sets forth rules & regulations that govern the procedures administrative agencies follow in performing their duties
Government in the Sunshine Act
- requires that "every portion of every meeting of an agency" be open to "public observation" - requires procedures to ensure that the public is provided with adequate advance notice of the agency's scheduled meeting & agenda
Freedom of Information Act (FOIA)
- requires the federal gov't. to disclose certain records to any person on request, even if no reason is given for the request - a request need only contain a reasonable description of the info sought - exempt: records involving national security; those containing personal/confidential info
Arbitrary & Capricious Test: APA
- the APA provides that courts should "hold unlawful & set aside" agency actions found to be "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law."
Administrative Process
- the procedure used by admin. agencies in the administration of law - 3 Basic Functions of Admin. Agencies: (1) rulemaking (2) enforcement (3) adjudication
Regulatory Flexibility 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 - the analysis must measure the cost that the rule would impose on small businesses & must consider less burdensome alternatives
Public Accountability
-several laws passed by Congress as a result of growing public concern over the powers exercised by administrative agencies - to make agencies more accountable through public scrutiny - i.e.: Freedom of Information Act (FOIA), Gov'.t in the Sunshine Act, Regulatory Flexibility Act, Small Business Regulatory Enforcement Fairness Act
Process of Formal Admin. Adjudication
Complaint --> Answer --> Hearing before ALJ --> Order of ALJ --> Appeal to governing board of agency --> Final agency order --> Appropriate court for review of agency decision --> Court Order
Notice-&-Comment Rulemaking
a procedure in agency rulemaking that requires: (1) notice of the proposed rulemaking (2) A comment period (3) a published draft of the final rule
Interpretive Rule
an administrative agency rule that explains how the agency interprets & intends to apply the statutes it enforces - not legally binding; provide enforcement guidelines for agency officials
Initial Order
an agency's decision in a matter other than a rulemaking - an ALJ's initial order becomes final order unless it's appealed
Article I of U.S. Constitution
courts generally hold that this is the basis for all administrative law
Article I Section 8
gives Congress the power to make all laws necessary for executing its specified powers
Appealing Hearings
if a party appeals ALJ's decision & the case is reviewed, the final order comes from the commission's decision/that of the reviewing court (usually an appellate court) - courts usually grant significant weight to the agency's judgment
Rulemaking
the actions of administrative agencies when formally adopting new regulations or amending old ones **Notice-&-Comment**
Final Order
the final decision of an admin. agency on an issue
Bureaucracy
the organizational structure, consisting of gov't bureaus & agencies, through which the gov't. implements & enforces the law
Administrative Law
the regulations that administrative agencies issue
