1. Powers and Functions of Administrative Agencies

2. Question - Net-Neutrality
Imagine you are a member of the U.S. Congress and are concerned that the internet is not regulated enough as there is a fear that internet service providers might slow or block some content, maybe competitors. legislation governing the internet?
Do you know enough about this to pass legislation?
How would you learn more?
How would you create the rules for complying with the law, enforce the law, and adjudicate issues arising from the law?
Assume you want to pass a law regulating the internet would you use an administrative agency? Why?

3. Agency Creation and Powers
Under the U.S. Constitution, Congress may delegate the task of implementing its laws to government agencies.
Enabling legislation

4. Why would Congress put an administrative agency in charge?

6. Executive Departments and Important Subagencies

8. Administrative Process
Three functions of administrative process are:
Rulemaking
Enforcement
Adjudication

9. Rulemaking
Notice of Proposed Rulemaking— Begins with the publication of the proposed regulation in the Federal Register.
Opportunity for Comment— After notice is published, time is allowed for private parties to comment on the proposed rule.
Publication of the Final Rule —After the agency reviews the comments, it drafts the final rule and publishes it.

10. Whether FTC can regulate securities “fraud” also regulated by IAA?
FTC v. Ken Roberts Co. (2001).
Whether FTC can regulate securities “fraud” also regulated by IAA?
Agencies Investigate
Inspections and Tests
Used to gather information and to correct or prevent undesirable conditions.
Subpoenas
Orders that direct individuals to appear at a hearing or to hand over specified documents.
Limits on administrative investigations include the following:
Legitimate purpose.
The information being sought must be relevant.
The demand for testimony or documents must be specified.
The burden of the demand is on the party from whom the information is sought.

11. Agencies Adjudicate End of Chapter Q: 19-10
Does Congress delegate too much power to federal agencies?

12. – Fishing Vessel

13. Limitations on Agency Powers
End of Chapter Q: 19-8
Global warming. Can EPA regulate carbon dioxide?
Limitations on Agency Powers
Power of Agencies. Combining the functions normally divided among the three branches of government into an administrative agency concentrates considerable power in a single organization.
Controls on Agencies. As a result, several controls exist to place such power in check, including:
Judicial Controls
Executive Controls
Legislative Controls
Explain each

14. Public Accountability
Freedom of Information Act of Requires the government to disclose records to “any person” on request.
Government-in-the-Sunshine Act of 1976
“[E]very portion of every meeting of an agency” must be open to “public observation.”
Procedures must be implemented to ensure that the public is provided with adequate advance notice of the agency’s scheduled meeting and agenda.
Regulatory Flexibility Act of 1980
Concern over the effects of regulation on the efficiency of business, particularly smaller ones, led Congress to pass the Regulatory Flexibility Act in 1980.
The act requires a regulatory flexibility analysis whenever a new regulation will have a “significant impact upon a substantial number of small entities.”

15. State Administrative Agencies
States also have administrative agencies
If state and federal conflict – federal wins.

16. For Review 1. How are federal administrative agencies created?
2. What are the three operations that make up the basic functions of most administrative agencies?
3. What sequence of events must normally occur before an agency rule becomes law?
4. How do administrative agencies enforce their rule?
5. How do the three branches of government limit the power of administrative agencies?