McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Administrativ e Law

17-2 Sources of Administrative Law U.S. Constitution Administrative Procedures Act (APA) Enabling Statutes Common Law

17-3 Primary Functions of Administrative Agencies Administrative agencies have a wide range of functions related to:  formation,  implementation, and  enforcement of regulations.

17-4 Policymaking 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.

17-5 Investigation and Enforcement Responsibilities include:  investigating alleged violations of the agency’s administrative regulations, and  recommending enforcement actions such as fines and other sanctions.

17-6 Licensing and Permitting Examples include the Securities and Exchange Commission issuing 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.

17-7 Distribution of Federal Statutory Benefits to the Public For example, the Social Security Administration is responsible for distributing retirement and medical benefits to eligible citizens.

17-8 Adjudication 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.

17-9 LIMITS ON ADMINISTRATIVE AGENCIES The legislative, executive, and judicial branches all have various means of power that limit the authority of administrative agencies.

17-10 Review of Enforcement, Licensing, and Inspection Activities KEY POINT Courts are highly deferential to agency decisions involving how and when an agency enforces a regulation.

17-11 Freedom of Information Act (FOIA) Requires agencies to publish certain matters, and To allow public inspection of all other records created or obtained by the agency in the course of doing the agency’s work upon the request of an individual or agency.

17-12 Private Citizen Suits 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 promulgated. 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.

17-13 learning outcomes checklist Explain the purpose of administrative law List and articulate the primary functions of an administrative agency Give examples of several administrative agencies that regulate business.

17-14 learning outcomes checklist Identify the primary sources of law that provide authority and set limits for administrative agencies Discuss how the Administrative Procedures Act (APA) and enabling statutes interrelate to provide an agency with its jurisdiction and scope of authority Identify and explain the steps used in administrative rulemaking.

17-15 learning outcomes checklist Define the powers of administrative agencies in the areas of licensing, inspection, and adjudication Describe the limits on agency powers imposed by the legislative, executive, and judicial branches of the government Name two federal public disclosure statutes and describe how these statutes make administrative agencies more accountable to the public.