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Unformatted text preview: Chapter 16: Powers and Functions of Administrative Agencies W HAT THIS C HAPTER I S A BOUT Federal, state, and local administrative agencies regulate virtually every aspect of a business’s operation. Agencies’ rules, orders, and decisions make up the body of administrative law. How agencies function is the subject of this chapter. C HAPTER O UTLINE I. AGENCY CREATION AND POWERS Congress delegates some of its authority to make and implement laws, particularly in highly technical areas, to administrative agencies. A. E NABLING L EGISLATION To create an agency, Congress passes enabling legislation, which specifies the powers of the agency. B. T YPES OF A GENCIES 1. Executive Agencies Includes cabinet departments and their subagencies. Subject to the authority of the president, who can appoint and remove their officers. 2. Independent Regulatory Agencies Includes agencies outside the major executive departments. Their officers serve for fixed terms and cannot be removed without just cause. C. A GENCY P OWERS AND THE C ONSTITUTION Agency powers include functions associated with the legislature (rulemaking), executive branch (en- forcement), and courts (adjudication). Under Article I of the Constitution and the delegation doctrine, Congress has the power to establish agencies to create rules for implementing laws. II. ADMINISTRATIVE PROCESS Rulemaking, investigation, and adjudication make up the administrative process. The Administrative Procedure Act (APA) of 1946 imposes procedural requirements that agencies must follow. A. R ULEMAKING Rulemaking is the formulation of new regulations. Legislative rules are as binding as the laws that Congress makes. Interpretive rules are not binding but indicate how an agency will apply a statute. 1. Notice of the Proposed Rulemaking An agency begins by publishing, in the Federal Register, a notice that states where and when pro- ceedings will be held, terms or subject matter of the proposed rule, the agency’s legal authority for making the rule. 2. Comment Period 131 132 UNIT 5: THE REGULATORY ENVIRONMENT Interested parties can express their views. An agency must respond to significant comments by modifying the final rule or explaining, in a statement accompanying the final rule, why it did not....
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This note was uploaded on 12/20/2010 for the course BUS 100 taught by Professor Staff during the Fall '09 term at CSU Dominguez Hills.
- Fall '09