Administrative Law in the USA

United States administrative law encompasses a number of statutes and cases which define the extent of the powers and responsibilities held by administrative agencies of the United States Government. The executive, legislative, and judicial branches of the U.S. federal government cannot always directly perform their constitutional responsibilities. Specialized powers are therefore delegated to an agency, board, or commission. These administrative governmental bodies oversee and monitor activities in complex areas, such as commercial aviation, medical device manufacturing, and securities markets.

Administrative law may be defined in four parts. Namely, the legal rules and principles that: (1) define the authority and structure of administrative agencies; (2) specify the procedural formalities employed by agencies; (3) determine the validity of agency decisions; and (4) define the role of reviewing courts and other governmental entities in relation to administrative agencies. Review of administrative decisions can take place internally and externally.

The federal system of administrative law is made up of four elements:

1) Tribunals – independent bodies which provide ‘merits review’, that is, examining and ‘re-making’ government decisions.

2) Courts – providing ‘judicial review’ of the lawfulness of government decision-making.

3) The Commonwealth Ombudsman – a permanent office holder with the power to investigate maladministration.

4) Freedom of Information – laws which create a general right of access to official information, subject to exclusions

U.S. federal agencies have the power to adjudicate, legislate, and enforce laws within their specific areas of delegated power. Agencies "legislate" through rulemaking - the power to issue regulations administrative law is codified as the Code of Federal Regulations.

The authority of administrative agencies stems from their organic statute, and must be consistent with constitutional constraints and legislative intent. Federal administrative agencies have the power to issue rules that have the effect of substantive law. The power to do so extends to all regulations necessary to carry out the purposes of the Administrative Procedure Act, rather than being limited to powers expressly granted by the statute. The power extends to substantive rules as well as procedural rules.

Agencies do not have the power to enact a regulation where:

- The regulation is an unconstitutional delegation of power;

- The organic statute explicitly denies authority (but note that failure to grant authority in later legislative efforts is not dispositive);

- Congress has enacted a separate regulatory scheme;

- The regulation is not based on factual findings;

- The regulation is not pursuant to serving the "public convenience, interest, or necessity".

- The regulation is outside the agency's statutory purpose as articulated in its organic statute.

The benefits of having a system for review of administrative decisions that is well established and independent include encouraging higher-quality decision making and building public confidence in government administration.

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