Blaw 02/05 Class 5 Chapter 5

The Exhaustion Doctrine

• Exhaustion Doctrine defines that before someone can appeal an agency decision, they must exhaust all administrative remedies.

• Courts do not review agency rulings until this process is complete.

• The court addresses appeals only after all administrative avenues are explored.

Branch Controls Over Administrative Agencies

Types of Controls

• Executive Controls: Agencies are influenced and directed by executive authority.

• Legislative Controls: Congress regulates agency actions through statutes.

• Judicial Controls: Courts review agency regulations and decisions based on legal standards.

Types of Administrative Rules

Legislative Rules

• Legally binding and considered a primary source of law equivalent to a statute enacted by Congress.

Interpretive Rules

• Non-binding guidelines that explain how agencies interpret and enforce their statutory authority.

Administrative Procedures Act (APA)

• Known as the foundational document for administrative law, akin to a 'bible' or guiding principle for agencies.

• Governs the procedures that administrative agencies must follow.

Key Points of the APA

1. Arbitrary and Capricious Standard: Courts can only overturn agency rulings if deemed arbitrary or capricious.

2. Fair Notice Requirement: Agencies must provide proper notice and an opportunity to affected parties to contest rules or decisions.

Functions of Federal Agencies

Three Basic Functions

1. Rule Making: Agencies create enforceable regulations.

2. Enforcement: Agencies monitor compliance with their regulations through investigations.

3. Adjudication: Dispute resolution regarding agency rules occurs, often in administrative hearings.

Rule Making Process

Notice and Comment Rule Making

1. Notice of Proposed Rule Making: Agencies must publish proposed rules in the Federal Register.

2. Comment Period: Stakeholders can provide comments on the proposed rules, which may influence the final decision.

3. Final Rule Publication: After comments are considered, the final rule is published, effective for compliance.

Enforcement Mechanisms

• Investigations: Agencies can conduct investigations to ensure compliance with regulations.

• Subpoenas: Agencies can compel testimony and document production during investigations.

• Search Warrants: Agencies require warrants for searches, adhering to Fourth Amendment protections.

Adjudication Process

• Initial disputes are often settled through negotiations to avoid costly litigation.

• If unresolved, formal complaints can be lodged leading to hearings before Administrative Law Judges (ALJs).

• ALJs are agency employees but must operate impartially under the law.

Judicial Review of Agency Actions

• Courts often defer to agencies unless their actions are arbitrary and capricious or not in accordance with the law.

Chevron Deference

• Courts historically deferred to agency interpretations of ambiguous statutes unless such interpretations were unreasonable.

• The recent Loper Bright Enterprises vs. Raimondo case ended the 40-year Chevron precedent, granting judges increased power to interpret laws directly.

Public Accountability Acts

Freedom of Information Act (FOIA)

• Allows the public to request records from federal agencies, fostering transparency.

Sunshine Act

• Requires that agency meetings be open to public observation with certain exceptions for private discussions, ensuring public scrutiny of agency actions.

Conclusion

• Understanding the interplay between agencies, their rules, and the processes for challenging those rules equips individuals and entities to navigate administrative law effectively.