1. McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 4-2

3. 4-3 Learning Objectives  Explain what administrative law is  Discuss the role of administrative law in business  Understand how diversity is important for administrative law  Explain how administrative agencies are created  Recite the powers of administrative agencies  Explain the Administrative Procedures Act and what it is designed to do  Explain how administrative law interfaces with courts  Explain the constitutional limitations of administrative law

4. 4-4 Administrative Law and Agencies  Administrative Law is the area that addresses federal and state government agencies and their role in carrying out their delegated authority  Administrative Agencies are created by the government to conduct business on its behalf  IRS – empowered by Congress to lay and collect taxes  Agencies are created by enabling statutes, or  Presidential Executive orders

5. 4-5 Need for Administrative Law  Need for more flexible enforcement proceedings  Need for subject matter expertise  Relieve court backlog  Need to solve national issues quickly

6. 4-6 Functions of Administrative Agencies  Rule making  Adjudication  Administrative functions  Advising  Reporting  Issuing guidelines

7. 4-7  Congress delegates parts of its power to administrative agencies depending on what they need to accomplish.  Quasi-Legislative Authority  Quasi-Judicial Authority Delegation of Administrative Powers

8. 4-8  Administrative Regulations Guidelines  Regulations promulgated by administrative agencies must be followed like other laws.  Must be published in the Federal Register to provided adequate notice and receive feedback  Can be challenged in courts based on constitutionality  Must not deprive citizens of rights without the due process of the law (5 th and 14 th Amend.)  Administrative Regulations Guidelines  Regulations promulgated by administrative agencies must be followed like other laws.  Must be published in the Federal Register to provided adequate notice and receive feedback  Can be challenged in courts based on constitutionality  Must not deprive citizens of rights without the due process of the law (5 th and 14 th Amend.) Delegation of Administrative Powers

9. 4-9  Administrative Regulations Guidelines –Minimally, regulations must give notice and opportunity for hearings  American Airlines, Inc. v. Department of Transportation, 202 F.3d 788 (5th Cir. 2000)  Administrative Regulations Guidelines –Minimally, regulations must give notice and opportunity for hearings  American Airlines, Inc. v. Department of Transportation, 202 F.3d 788 (5th Cir. 2000) Delegation of Administrative Powers

10. 4-10 Formal Rule Making  Complies with Administrative Procedures Act  Notice in Federal Register  Public hearing and live testimony  Publication of findings

11. 4-11  Agency drafts regulations  Notice in Federal Register  Public comment period – usually 30 days  Agency considers comments – decides to modify or not  Publication of final draft Informal Rule Making

12. 4-12 Enforcement of Administrative Agency Orders  A final order issued in an adjudication, will have full force and effect only if the order is enforced by a court of law  The effect is to take the issue out of the purview of the agency, with its limited authority, and give it the full force and effect of law as issued by a more comprehensive court of law

13. 4-13 Administrative Regulations and Business  Businesses may belong to trade organizations in order to receive updates on agency regulations and ensure compliance.  Under the Administrative Procedures Act (APA), regulations usually undergo a period of seeking input from those likely to be affected by the regulation (i.e. businesses in that field).  It is important for the business owner to have a means of having his or her business interests and input heard and represented.  Administrative agencies must comply with APA and act transparently