Administrative Law Rule: Overturning Statutory Law?

Administrative law is a branch of law that governs the creation and operation of administrative agencies and the legal relationships between agencies, other government bodies, and the public. These agencies are delegated power by Congress to administer, enforce, and regulate various federal laws. While administrative agencies have the power to enact rules and regulations, they must still act within Constitutional and statutory parameters. Notably, in 2024, the US Supreme Court overturned a longstanding precedent that required federal courts to defer to reasonable agency interpretations of ambiguous statutes, shifting power from agencies to federal judges. This decision highlights the dynamic nature of administrative law and raises questions about the balance of power between agencies and the courts.

Administrative law and the creation of administrative agencies

Administrative law is a critical component of public law that deals with the decision-making of administrative units of government that are part of the executive branch. It is a branch of law that governs the creation and operation of administrative agencies and their relationships with other government bodies and the public.

The creation of administrative agencies is necessary because Congress cannot enforce and administer every law it enacts. These agencies are delegated power by Congress to take on the responsibility for carrying out certain prerogatives from Congress. Agencies are created through their own organic statutes, which establish new laws, and in doing so, create the respective agencies to interpret, administer, and enforce those new laws. Generally, administrative agencies are created to protect the public interest rather than to vindicate private rights.

Agencies have the power to enact various rules defining and interpreting relevant statutes, enforce those rules, and adjudicate matters according to those regulations. However, despite the agencies' enormous powers, they must still act within Constitutional and statutory parameters. The Administrative Procedure Act (APA) is a statute that provides the roles and powers of agencies and the procedures they must follow. The APA categorizes administrative functions into formal and informal rulemaking and adjudication, which have binding effects, as well as guidance, which has no binding effect. The APA ensures that the rule-making and enforcement activities of agencies are conducted fairly and efficiently, serving the public interest.

In the United States, the Supreme Court and state supreme courts make laws that regulate the procedures followed in the lower courts. In Brazil, administrative cases are heard by Federal Courts or the Public Treasury divisions of State Courts. In the Netherlands, administrative law provisions are usually contained in various laws about public services and regulations, with a single General Administrative Law Act (Algemene wet bestuursrecht or Awb) that applies to the making of administrative decisions and their judicial review.

Agencies' powers and their relationship with other government bodies

Agencies are "'bureaucratic institutions entrusted with the implementation, management, and administration of our law and public policy". They are created by Congress through their own organic statutes, which establish new laws, and in doing so, create the respective agencies to interpret, administer, and enforce those new laws. Agencies are delegated power by Congress to take on the responsibility for carrying out certain prerogatives from Congress.

Agencies are part of the executive branch of the United States government. They are the means through which the government enforces and administers law. An "agency" is any federal governmental authority other than Congress, the courts, and the military. The term "agency" is often used to refer to federal departments, sub-departments, and commissions. Some of the most notable agencies are the executive agencies such as the Department of Justice and the Department of Defense. Other examples include some independent agencies such as the Federal Trade Commission, Securities and Exchange Commission, and the Environmental Protection Agency, all of which are independent from the direct control of the President.

Agencies have enormous power to enact various rules defining and interpreting relevant statutes, enforce those rules, and adjudicate matters according to those regulations. However, despite the agencies’ enormous powers, the governmental agencies must still act within Constitutional and statutory parameters. These and other limits have been codified, for a large part, into a statute known as the Administrative Procedure Act (APA). The APA is a 1946 law that sets parameters for how agencies function. It is a comprehensive regulatory scheme governing regulations, adjudications, and rulemaking in general terms.

The level of deference afforded to administrative agencies has varied over time. In 2024, the Supreme Court overturned Chevron U.S.A., Inc. v. NRDC, 467 U.S. 837 (1984); in Loper Bright Enterprises v. Raimondo. Under Chevron deference, courts applied an extremely deferential standard of review, in which they deferred to agency interpretations of statutes unless they were determined to be unreasonable. The Court made the following major points: courts must use independent judgment to determine the meaning of federal statutes. It cannot defer to agency regulation just because the issue is not clear in a statute. According to the majority opinion, the Chevron decision runs counter to the APA, which incorporated prior practice that “courts decide legal questions by applying their own judgement.”.

Agencies' authority to create administrative law

Administrative law is the branch of law that governs the creation and operation of administrative agencies. Agencies are bureaucratic institutions that implement, manage, and administer the law and public policy. They are created through their own organic statutes, which establish new laws, and in doing so, create the respective agencies to interpret, administer, and enforce those laws. Agencies are delegated power by Congress (or in the case of a state agency, the state legislature) to take on the responsibility for carrying out certain prerogatives from Congress.

Agencies have the power to enact various rules defining and interpreting relevant statutes, enforce those rules, and adjudicate matters according to those regulations. They may use formal and informal procedures to create rules that help them enforce laws. Agencies may conduct investigations during rulemaking or licensing, or before an enforcement action. They may also pursue administrative, civil, or criminal sanctions for violations of laws or rules. Many rules for hearings resemble standard courtroom rules, but a judge determines factual issues.

The Administrative Procedure Act (APA) is a remedial statute designed to ensure uniformity and openness in the procedures used by federal agencies. The APA is a major source for federal administrative agency law, while state agencies' administration and regulation are governed by comparable state acts. The APA also specifies when courts may review and nullify administrative agency rules and provides standards for any administrative hearings that are conducted. Federal agencies—both executive and independent—have to follow the rulemaking procedures outlined in the APA.

An agency's powers are granted by Congress in an "enabling act," sometimes referred to as an "organic act," and in other specific legislative grants of power. The exercise of those powers, through rulemaking and decision-making, is the subject of administrative law. An agency's power to promulgate legislative regulations is limited to the authority delegated by Congress.

Judicial deference and the level of deference afforded to agencies

Judicial deference is an important aspect of administrative law. Courts have often deferred to the expertise of agencies when interpreting technical language in statutes. This deference is based on the recognition that agencies possess the specialised knowledge and competence required to interpret and apply complex and technical regulations. This is especially true in areas like science-based policymaking, where state agencies are often at the forefront of developing policies that impact the public on a daily basis.

The level of deference afforded to agencies has varied over time and across different jurisdictions. For example, courts in some states, such as Alaska, California, Iowa, and Missouri, give "considerable weight" or "appreciable deference" to agency interpretations. In these states, courts may defer to agency expertise when interpreting technical language while applying a less deferential standard for evaluating general statutory terms. On the other hand, some commentators have suggested a trend of state courts moving away from deference to agency expertise, with several state supreme courts rejecting Chevron-type frameworks.

The Chevron deference, established in a 1984 Supreme Court case, has been a significant factor in shaping the level of deference afforded to agencies. Under the Chevron framework, courts applied a highly deferential standard, deferring to agency interpretations of statutes unless they were deemed unreasonable. However, in 2024, the Supreme Court overturned the Chevron decision in the case of Loper Bright Enterprises v. Raimondo, asserting that courts must use their independent judgment to determine the meaning of federal statutes and cannot simply defer to agency regulations when a statute is unclear.

The overturning of Chevron deference has had a significant impact on the relationship between courts and agencies. It shifts policy-making power from agencies to federal judges and incentivises challenges to agency rules in court. This new era of judicial review of agency decisions may impede the implementation of laws passed by Congress and create barriers to enacting key health care protections and other public interest policies.

Agencies' investigative and enforcement powers

Administrative law governs the creation and operation of administrative agencies, including their investigative and enforcement powers. Agencies are delegated power by Congress to carry out certain prerogatives, and they are created through their own organic statutes, which establish new laws and create agencies to interpret, administer, and enforce them.

Agencies are empowered by law to investigate various matters within their legal jurisdiction. They may conduct investigations as part of the rule-making process, when reviewing an application for a license or permit, or when determining whether to bring an enforcement action. An executive order from a President or governor may direct an agency's investigative activities, but it cannot expand an agency's investigative authority beyond what the statute authorizes. Agencies have broad discretion within their jurisdiction to decide whether and how to conduct investigations, unless a statute or executive order provides express directions.

Agencies are often tasked with enforcing statutes and may create rules to help them achieve the legislators' goals. They can conduct investigations to monitor compliance and identify violations, and they may pursue administrative, civil, or criminal enforcement actions. Some agencies are authorized to pursue formal legal action for alleged violations, including civil lawsuits and criminal charges. An agency's enforcement authority is limited to the powers granted by statute, and they cannot pursue matters outside this scope or impose new procedures or penalties.

The level of deference afforded to administrative agencies by courts has varied over time. In 2024, the US Supreme Court overturned the Chevron deference standard, which required federal courts to defer to reasonable agency interpretations of ambiguous statutes. This shift will likely transfer policy decisions from agencies to federal judges and incentivize challenges to agency rules in court.

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