ch. 23: administrative agencies

Congress or state legislatures

pass general statutes and delegate details to administrative agencies

Agencies

exist to help carry out the rules in the statute

• enable legislation — passed to create an administrative agency. It specifies the name, purposes, functions and powers of the agency.

Federal Executive Agencies

type of agency:

These agencies are formed to help the President carrying out executive functions.

• They include the cabinet departments of the executive branch.

• EX: Department of Health and Human Services (HHS): Manages public health and social programs.

  • Example sub-agency: Food and Drug Administration (FDA),

Independent Regulatory Agencies

type of agency:
These agencies are outside the major executive departments

Exist outside the cabinet departments and answer with greater autonomy, though they remain technically within the executive branch. Many are multi-member boards or commissions rather than single-leader departments

• SEC, FTC, etc

Agency Powers

1. Make laws (rulemaking)

2. Enforce laws (investigation and compliance)

3. Judge violations (adjudication)

Checks and Balances

• Executive Controls: President appoints officers, can veto.

• Legislative Controls: Congress can amend or abolish agencies, defund them.

• Judicial Controls: Courts review agency actions — but only after the Exhaustion Doctrine (you must complete the agency’s internal process before appealing to court).

Administrative Procedure Act (APA) of 1946

• Sets procedural requirements for all federal agencies.

• Ensures agency actions aren’t arbitrary or capricious.

• Courts can overturn decisions if the agency:

  1. Fails to explain its reasoning.

  2. Changes policy without justification.

  3. Considers irrelevant factors.

  4. Ignores relevant factors.

  5. Makes decisions contrary to evidence.

• Fair Notice: Agencies must give clear notice before enforcing new rules.

Exhaustion Doctrine

You must finish the agency’s administrative process before going to court

• If I have an agency after me and I have to go through their entire administration process before I can go to court and appeal their decision.

• If to get to the judicial court on the agency the company that is after me has to exhaust the process

fairly

APA Purpose: To ensure agencies act _____, rationally, and within their legal authority.

Rule

an agency statement with future effect that implements or interprets law or policy

Federal Register

where is the notice of proposed rulemaking published in

Codes of Regulation

where is the final rule published

Rulemaking Formal Process

• Notice of Proposed Rulemaking: Published in the Federal Register.

• Comment Period: Public can submit feedback.

• Final Rule: Published in the Code of Federal Regulations (CFR).

• Informal Agency Actions: Interpretive rules or policy statements — exempt from APA’s formal requirements.

Agency Enforcement

Agencies ensure compliance through:

1. Inspections – on‑site checks.

2. Subpoenas: Legal orders used to gather evidence during an investigation.

   • Subpoena ad testificandum: Compels a person to appear and give oral testimony under oath.

   • Subpoena duces tecum: Compels a person or entity to hand over specific physical documents, records, or evidence.

• Must comply with constitutional limits (Fourth Amendment).

1. Search Warrants – needed for non‑consensual searches.

requires testimony

Agency compliance subpoenas:

Subpoena ad testificandum

requires documents

Agency compliance subpoenas:

Subpoena duces tecum

Adjudication

judging disputes

1. Negotiated Settlements – often resolve cases early.

2. Formal Complaints – issued when violations occur.

3. Administrative Law Judge (ALJ):

• Independent decision‑maker within the agency.

• Conducts hearings and issues decisions.

4. Hearing Procedures – similar to trials but less formal.

5. Agency Orders – final decisions; can be appealed under the Exhaustion Doctrine.