Chapter 20 - Administrative Agencies

Enabling Legislation

A law passed by Congress that specifies an administrative agency's name, purposes, functions, and powers.

Limits on federal agency power

Federal agencies may only exercise powers delegated to them by Congress in their enabling legislation.

How state agencies are created

State legislatures create them through similar enabling acts.

Federal Agencies

Handle national issues and enforce federal laws; jurisdiction covers the entire country. Examples: FBI, EPA.

State Agencies

Manage affairs within a state's boundaries, enforce state laws, and run local programs. Examples: California DMV, Texas Dept. of Public Safety.

Municipal Agencies

Operate at the city, town, or county level and manage local public services. Examples: NYPD, local public health departments.

Executive Agencies

Under direct control of the President. Cabinet-level departments of the Executive Branch and their sub-departments (e.g., DOD).

Independent Agencies

Created by Congress with a mandate to resist political pressure. Sit outside major executive departments (e.g., FAA, FCC, SEC).

Delegation Doctrine

Congress cannot give away its core lawmaking powers (Article I of the Constitution) to administrative agencies.

Exhaustion Doctrine

A complaining party normally must exhaust all available administrative remedies before seeking judicial review in court.

Ripeness Doctrine

The party seeking review must show (1) standing to sue and (2) an actual controversy.

Standing to sue

You must be the party actually affected by the agency's decision.

Actual controversy

The issue must be happening now, not merely hypothetical or in the future.

Arbitrary and Capricious Test (5 factors)

An agency decision is arbitrary and capricious if it: 1) gave no rational explanation 2) changed prior policy without justification 3) considered legally inappropriate factors 4) failed to consider a relevant factor 5) reached a decision plainly contrary to the evidence.

FCC v. Fox Television: Facts

Live award show on Fox; a winner said the F-word once during an acceptance speech. FCC's prior policy was a 'safe harbor' for a single fleeting expletive, but the FCC suddenly enforced against Fox as if the safe harbor no longer applied.

FCC v. Fox Television: Issue

Did the FCC follow APA procedures (notice, comment, final rule) before changing its policy?

FCC v. Fox Television: Result

No notice, no comment period, no final rulemaking. Decision was arbitrary and capricious (changed policy without justification, no rational explanation). Fox won.

Hemp Industries v. DEA: Facts

DEA previously allowed hemp products with only trace amounts of THC, then issued a rule making any product with any level of THC a controlled substance.

Hemp Industries v. DEA: Can DEA reclassify?

Yes, agencies can change classifications. But the DEA did not follow the APA (notice, comment, final rule).

Hemp Industries v. DEA: Agency failures

1) No rational explanation for including all hemp products (hemp is used for paper, clothing, oils, furniture) 2) Changed prior policy (trace amounts were fine) without justification 3) Failed to consider relevant factors (hemp's non-drug uses).

Hemp Industries v. DEA: Result

DEA lost; Hemp Industries won.

Notice and Comment Rulemaking (3 steps)

1) Notice: public notice of proposed rule (usually on agency website) 2) Comment Period: interested parties submit input 3) Final Rule: agency must incorporate/address what it heard in comments.

Notice (rulemaking)

Public notice of the proposed rule/change, typically posted on the agency's website.

Comment Period

Interested parties (businesses, the public) may submit input before the rule is finalized.

Final Rule

The agency must incorporate/address what it heard during the comment period.

Agency investigation powers

Conduct investigations; issue subpoenas (compel documents or testimony); conduct site inspections, including warrantless inspections.

Subpoena

Agency order that compels documents or testimony.

Adjudication

Used when a business disputes what an agency is doing. Mechanisms: negotiated settlements, formal complaints, hearing before an ALJ, agency orders.

Administrative Law Judge (ALJ)

An impartial official who presides over hearings and decides disputes between citizens, businesses, and government agencies.

Administrative Hearing

A formal meeting where an agency resolves a specific dispute, e.g., a person/business is accused of breaking an agency rule or was denied something like a permit or benefits.

Agency Order

The final, official decision issued by the agency after the hearing; serves as the final judgment.