Introduction to Agencies

Overview

• Agencies are within the executive branch.
• Can contain sub-agencies within departments, e.g., FBI and DEA in the Department of Justice.
• Independent agencies exist outside of department structures, e.g., FTC, SEC, CIA, EPA.

Agency Structure

• Departments led by secretaries (except Attorney General for DOJ).
• Secretaries are part of the president's cabinet.
• Heads appointed by the president with Senate approval, serve at the president's pleasure.

Types of Agencies

• Executive Agencies: Part of departments.
• Independent Agencies: Separate from departments; less presidential influence.
  • Often led by multi-member groups with staggered terms.
  • Members can only be removed for cause.
  • Limited political party majority among members.

Laws Governing Agencies

1. Administrative Procedure Act (APA)
   • Definition excludes Congress and courts.
   • President not considered an agency due to separation of powers.
2. Statutes by Congress
3. Constitutional Provisions
   • E.g., Due Process Clause.

Historical Context

• APA created post-Great Depression for economic recovery.
• New Deal created many agencies (e.g., SSA, PWA).
• APA combines formal adjudication and informal rulemaking.

Rulemaking

• Informal Rulemaking: Supposed to be simpler but is complex and document-heavy.
• Formal Rulemaking: Traditionally more structured.

Pros and Cons of Procedures

• Pros: Fairness, public involvement, potentially more accurate decisions.
• Cons: Cost, time-consuming, can hinder agency function.

Agency Power

• Agencies seen as powerful 'fourth branch'.
• High success rate in litigation (70% in general, 91% when interpreting own rules).

Types of Agency Activities

1. Regulatory Agencies
   • Regulate private conduct (e.g., FTC, FDA, state occupational licensing).
   • Justifications: Market imperfections, social values, efficiency, competition, externalities.
2. Entitlement Agencies
   • Administer funds for programs like Social Security, Medicare.
   • Aim to enhance welfare and incentivize behavior change.

Conclusion

• Transitioning to Unit 2: Types of Agency Actions, including Rulemaking, Adjudication, and Investigation.