Chapter 17 -Administrative Law

Chapter Overview
The definition and role of administrative law in the American legal system
The functions and scope of administrative agencies
and the limits on these agencies’ powers.
Ways in which administrative agencies are accountable to the public
The role of state administrative law
Definition, Function and Sources of Administrative Law
 Administrative 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 branch department
(such as the Internal Revenue Service functioning within the Department of
the Treasury) as well as nondepartment agencies (EPA)
2 ways that can be implemented
Primary Functions of Administrative Agencies
Administrative agencies have a wide range of functions related to:
 formation,
 implementation, and
 enforcement of regulations
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.
Investigation and Enforcement
Responsibilities include:
 investigating alleged violations of the agency’s administrative regulations, and
 recommending enforcement actions such as fines and other sanctions.
  monitor compliance with regulatory requirements through inspection of the
facilities and grounds of business sites under their jurisdiction
most administrative laws are barriers when lawsuits are made
must file a complaint with the agency before filling a lawsuit
Licensing and Permitting
The Securities and Exchange Commission issues 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.
Distribution of Federal Statutory Benefits to the Public
When Congress confers a benefit to the citizenry at large, administrative agencies
are the portal used by the law to actually distribute those benefits.
Agencies are involved in the
application process and distribute benefits according to law.
For example, the Social Security Administration is responsible for distributing
retirement and medical benefits to eligible citizens.
Administrative Agencies in the Context of the U.S. Government Organizational
Chart
Sources of Administrative Law
 U.S. Constitution
 Administrative Procedures Act (APA)
 Enabling Statutes
 Common Law - law that courts make
Scope of Administrative Agency Power
These powers include policymaking through:
 rulemaking,
 enforcement/licensing, and
 adjudication
Rulemaking
The rulemaking process is set out in the APA (Administrative Procedure Act) and is
supplemented by the enabling statutes passed by Congress.
 In practice, much of an agency’s rulemaking duties are carried out through informal
rulemaking procedures that are permitted under the basic structure of the APA.
Notice: Publication of the Proposed Rule
Public Comment – Release in draft mode
Protection of Small Business Owners -
Revision or Final Publication -
Judicial Challenges -
Federal Register
 Federal Register
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.
Association of Private Sector Colleges and Universities v. Duncan and the U.S.
Department of Education, 681 F.3d 427 (D.C. Cir. 2012)
“[The proposed rule] and the final rule need not be
identical: ‘[a]n agency’s final rule need only be a
logical outgrowth of its notice.’ A final rule qualifies
as a logical outgrowth ‘if interested parties should
have anticipated that the change was possible, and
thus reasonably should have filed their comments on
the subject during the notice-and-comment period.’
Final rule was changed by prominent institution, no comment period. Didn’t involve
process
Enforcement, Licensing, and Inspection
The U.S. Supreme Court has ruled that agencies have broad discretion in when and
whom to regulate.
Administrative agencies also regulate and administer laws through licensing.
Some agencies also monitor compliance with administrative regulations by
conducting inspections of businesses and individuals within their jurisdiction.
Trinity Marine Products v. Secretary of Labor, 512 F.3d 198 (5th Cir. 2007)
“Probable cause may be based either on specific evidence of an existing
violation, as in the traditional criminal context, or on a lesser showing that
 ‘reasonable legislative or administrative standards for conducting an inspection are
satisfied with respect to a particular establishment.’”
Conduct inspection on products, didn’t let OSHA do their job, got warrant, wanted to
protest, went to court, court in favor of OSHA.
Example, like an audit can be go inside your place
Adjudication
 Adjudication – like a mini trial
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. Experts in bills
before they are enforced
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 trial court.
ALJ- Director- Sue Federal Agencies
Limits on Administrative Agencies
The legislative, executive, and judicial branches all have various means of power
that limit the authority of administrative agencies.
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.
 Direct Power
o They make the rules

Congress
Congress may exercise their constitutionally granted 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.
Judicial Review
Statutory Interpretation by Agencies
Applying the Arbitrary and Capricious Standard
Private Citizen Suits
 Citizen suits
any member of the public at large who is directly affected by a particular
agency action (or inaction) to bring a lawsuit against violators of a particular
regulation and/or the administrative agency 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.
Most common with the EPA
Freedom of Information Act (FOIA)
 Freedom of Information Act
requires agencies to publish certain
matters and, upon the request of an individual or agency (such as a media
outlet), to allow public inspection of all other records created or obtained by
the agency in the course of
doing its work.
allows private parties to sue the agency if the records are wrongfully withheld.
Freedom of Information Act (FOIA)
The most commonly excluded records are documents that
contain
1. sensitive national defense or foreign policy information;
2. agency personnel matters
3. trade secrets and privileged commercial information,
Government in the Sunshine Act
Requires that agencies announce their meetings at least one week in advance and
to open the meeting to the public
Administrative Law at the State Level
States frequently have agencies devoted to the regulation of parties within the
state’s borders for the sale of securities (selling a business entity’s stock to the
public), protection of the environment, regulation of banking and insurance
companies, workplace safety, consumer protection, labor and employee
antidiscrimination regulations.