Chapter 43 Administrative Law and Regulatory Agencies.

Chapter 43Administrative Law and Regulatory Agencies

Introduction to Administrative Law and Regulatory Agencies

Businesses are subject to substantial federal, state, and local government regulation

Government regulation Designed to protect employees and the public from

unsafe and abusive practices by businesses

43-2Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Administrative Law

Law that governments enact to regulate industries, businesses, and professionals

Administrative agencies: Agencies that governments create to enforce regulatory statutes


Exhibit 43.1 - Administrative Agency


Government Regulation of Business

Type of Regulation Description

General government regulation

Government regulation that applies to many industries

Specific government regulation

Government regulation that applies to a specific industry


Federal Administrative Agencies

Federal administrative agencies that are created by the U.S. Congress

Cabinet-level federal departments: Federal agencies that advise the president and are responsible for enforcing specific administrative statutes enacted by Congress

Independent federal administrative agencies: Federal agencies that have broad regulatory powers over key areas of the national economy


State and Local Administrative Agencies

State administrative agencies: Created by legislative branches of states Administers state regulatory laws

Local administrative agencies: Created by cities, municipalities, and counties Administers local regulatory law


Administrative Procedure

Administrative law—combination of substantive and procedural law Substantive administrative law—Law that an

administrative agency enforces Procedural administrative law—Establishes the

procedures that must be followed by an administrative agency while enforcing substantive laws


Administrative Law Judge (ALJ)

An employee of an administrative agency Presides over an administrative proceeding Decides questions of law and fact concerning cases

Order: A decision issued by an administrative law judge

Administrative Procedure Act (APA): A federal statute that establishes procedures to be followed by federal administrative agencies while conducting their affairs


Powers of Administrative Agencies

Delegation doctrine: A doctrine that says When an administrative agency is created, it is

delegated certain powers The agency can use only the legislative, judicial,

and executive powers that are delegated to it



Legislative Power Description

Substantive rule making To adopt rules that advance the purpose of the statutes that the agency is empowered to enforce. These rules have the force of law. Public notice and participation are required.

Interpretive rule making To adopt rules that interpret statutes. These rules do not establish new laws. Neither public notice nor participation

is required.

Statements of policy To announce a proposed course of action the agency plans to take in the future. These statements do not have the force

of law. Public participation and notice are not required

Licensing To grant licenses to applicants (e.g., television station licenses, bank charters) and to suspend or revoke licenses.



Power Description of Power

Judicial The power to adjudicate cases through an administrative proceeding. This includes the power to issue a complaint, hold a hearing by an administrative law judge (ALJ), and issue an order deciding the case and assessing remedies.

Executive The power to prosecute violations of statutes and administrative rules and orders. This includes the power to investigate suspected violations, issue administrative

subpoenas, and conduct administrative searches.


Administrative Searches

Subject to the Fourth Amendment to the U.S. Constitution

Unreasonable search and seizure: Any search and seizure by the government that violates the Fourth Amendment to the U.S. Constitution

Evidence from an unreasonable search and seizure (“tainted evidence”) is inadmissible in court


Case 43.1: U.S. Supreme Court Search of Business Premises

Case New York v. Burger 482 U.S. 691, 107 S.Ct. 2636, 96 L.Ed.2d 601,

Web 1987 U.S. Lexis 2725 Supreme Court of the United States


Case 43.1: U.S. Supreme Court Search of Business Premises

Issue Does the warrantless search of an automobile

junkyard pursuant to a state statute that authorizes such search constitute an unreasonable search and seizure, in violation of the Fourth Amendment?


Judicial Review of Administrative Agency Actions

Review is expressly provided for in many federal statutes In the absence of enabling statute – APA authorizes

judicial review of federal administrative agency actions


Exhibit 43.3 - Appeal of a Federal Administrative Agency Decision

Administrative Law Judge

(ALJ)

Federal Administrative

Agency

U.S. District Court

U.S. Court of Appeals

U.S. Supreme

Court

Whether the appeal from the Federal Whether the appeal from the Federal Administrative Agency is to the U.S. Administrative Agency is to the U.S. District Court or the U.S. Court of District Court or the U.S. Court of Appeals is determined by the federal Appeals is determined by the federal law in question.law in question.


Freedom of Information Act

Federal act that gives the public access to documents in the possession of federal administrative agencies

Documents are exempt from disclosure if they Are classified in the interests of national security Are statutorily prohibited from disclosure Interfere with law enforcement proceedings Are medical, personnel, and similar files Contain trade secrets, confidential or privileged

information


Government in the Sunshine Act

A federal act that opens most federal administrative agency meetings to the public

Exceptions are meetings: Where a person is accused of a crime Concerning an agency’s issuance of a subpoena Where attendance of the public would significantly

frustrate the implementation of a proposed agency action

Concerning day-to-day operations


Equal Access to Justice Act

A federal act that protects persons from harassment by federal administrative agencies

Privacy Act: A federal act which states Federal administrative agencies can maintain only

information about an individual that is relevant and necessary to accomplish a legitimate agency purpose


Chapter 43 Administrative Law and Regulatory Agencies.

Documents

Transcript of Chapter 43 Administrative Law and Regulatory Agencies.