Overview Chapter 10: Government Regulation

Congress creates administrative agencies through enabling acts.
In these acts, Congress delegates authority by giving the agency some direction as to agency’s goals.
Agencies are usually given broad powers to investigate, set standards (via regulations), and enforce those standards.
Most agencies are executive branch agencies, but some are independent.
Administrative agencies are given powers to legislate, investigate, and adjudicate.
But these powers are limited by executive and legislative controls and by judicial review.
Agencies make rules that have the same effect as laws passed by Congress and/or Executive Orders from the President.
But such rules (regulations) must allow for full participation by interested parties.
The Administrative Procedure Act (APA) governs both rulemaking and the agency enforcement of regulations, and it provides a process for notice and fair hearings.
Government agencies, in order to do their jobs, collect a great deal of information from businesses.
This can range from routine paperwork to inspections.
Surprise inspections are allowed for closely regulated industries but are subject to Fourth Amendment requirements.
Some information collected by agencies can be accessed using the Freedom of Information Act.
After exhausting administrative remedies, there are numerous grounds for seeking judicial review of an agency’s order or of a final rule.
While courts defer to agencies to some degree, an agency must follow its own rules, comply with the Administrative Procedure Act, act within the scope of its delegated authority, avoid acting in an arbitrary manner, and make final rules that are supported by substantial evidence.