Procedures of Administrative Agencies

Requirements for Agency Procedures

• Administrative Procedure Act (APA):

  • Passed in 1946 to standardize federal agency procedures.
  • Ensures public transparency, Congressional oversight, and participation in rulemaking.
  • Establishes standards for rulemaking and adjudication.
  • Defines agency rules as law-implementing statements and orders as final dispositions in adjudications.
  • Applies to all federal agencies, excluding Congress, courts, and the President.
  • State agencies not covered by APA, but similar state laws exist.

• Due Process Requirements:

  • Under the 5th and 14th Amendments, due process is required for deprivation of liberty or property.
  • Minimum due process includes a hearing before an impartial judge with adequate notice.
  • Extent of due process varies based on factors like interest impact, government interest, and administrative burden.
  • Not all negative government actions require due process; only particularized actions do.

Distinction Between Agency Actions

• Particularized vs. Generalized Actions:

  • Particularized: Impacts a small group based on specific facts; requires due process.
  • Generalized: Impacts many based on broad policy; addressed through political process.

• Landmark Cases:

  • Differentiated between city ordinance tax on property owners vs. broad property valuation increase.
  • Established distinctions between rulemaking (broad policy) and adjudication (individualized facts).

Due Process for Administrative Actions

• Agency Adjudicatory Hearings:

  • Congress may require hearings for agency policies impacting individuals.
  • Formal adjudication required if defined as such by APA and statute mandates hearing on the record.
  • Informal adjudications require basic procedural fairness, even if not formal.

• Property and Liberty Interests:

  • Entitlements like welfare benefits considered property rights, requiring due process for termination.
  • Government employment and professional licenses also considered property, with due process for removal or denial.
  • Liberty interests include rights like contract, profession choice, and family decisions, protected by due process.

The Hearing

• Pre-Deprivation Hearings:

  • Required before deprivation of rights unless exigent circumstances exist.

• Hearing Requirements:

  • Timely notice, opportunity to raise objections.
  • Opportunity to present evidence and confront opposing witnesses.
  • Hearing before an impartial decision-maker.
  • Right to legal counsel in adversarial settings.

Rulemaking and Adjudication

• Agency Operations:

  • Agencies use rulemaking for forward-looking policy; more efficient but non-appealable.
  • Adjudication allows for case-specific flexibility, retroactive applications, and is faster but reversible.

• Limits on Agency Discretion:

  • Courts restrict adjudication for prospective policy changes; prefer rulemaking for broad policy.
  • Retroactive adjudicatory rulings can be overturned if deemed an abuse of discretion.

• Agency Investigations:

  • Agencies can gather information voluntarily or through subpoenas (court-ordered).
  • Physical inspections require statutory authorization and must comply with Fourth Amendment.

• Next Modules:

  • Module 3 will focus on types of agency rulemaking and procedures.