Professional Documents
Culture Documents
Statutes/Constitution
Regulations
Policy
1. Introduction to Modern Government
a. Article 1-Congress
i.
Power to lay and collect taxes, provide for common defense and general
welfare
ii.
Regulate commerce with foreign nations
iii.
Make laws that are necessary and proper for carrying into execution the
foregoing Powers
b. Article 2-President
i.
Commander in Chief of Military
ii.
Advice and Consent make treaties with of Senate, can nominate with
advice from Senate (Ambassadors, S. Ct. justices, other officers) Congress can veto
iii.
Section 1- Vesting Clause Executive power shall be vested in the
president of the U.S.
iv.
Section 3-Take Care Clause Shall take care that the laws be faithfully
executed
c. Article 3-Judicial Branch
i.
S. Ct., Congress can create lower courts
ii.
All Constitutional cases, cases where U.S. is a party
d. Limits of the Common Law: Tort and Contract
i.
Limitations on Common Law Adjudications in General p. 95
1. Retrospective rather than prospective
2. Reactive rather than proactive
3. Uncertainty (Especially across states!)
4. Institutional Competence
5. Political Accountability
6. Parties v. Interested Participants
7. Collective Action Problems
ii.
Problems with torts
1. Reactive
2. Inconsistent
3. Always ex post
4. Judges are generalists not specialists
iii.
Macpherson v. Buick (1916) p. 86 Inconsistent
1. Plaintiff was injured when a defective wheel on his car
fell off, defendant didnt make the wheel
a. The ultimate manufacturer is liable to
the final consumer because the manufacturer was in the best position to inspect
the car before it was sold
2. Problems with privity rule
a. Inefficient
i.
Creates more cases
b. No incentive for mfr. to create good
products
i.
Cant be sued by
consumers in tort or contract
ii.
Developed for small
towns where social pressure kept businesses accountable
c. Dealer has no duty to inspect
3. Privity rule was antiquated
a. Macpherson changed this rule.
iv.
Rotsche v. Buick (1934) pg. 90 Common law is unpredictable
1. Plaintiff had an accident. Mechanic who inspected the
car said pieces were missing, but factory records approved the car
a. Buick provided evidence of extensive
f.
iv.
Moral
1. Individual people dont have the ability to pay for
ii.
Commission can act as
master in chancery under rules prescribed in court-acts as judicial
vi.
Morrison v. Olson (1988) Good cause okay for inferior officers
1. Attorney General was required to investigate high-level
government officials
a. If he found reasonable reason to
proceed, he had to ask a special court to appoint an independent prosecutor who
could only be removed for good cause
2. Was the independent prosecutor a principal or inferior
officer?
a. Principal officers can be removed at
wish of the President
b. Court found was an inferior officer
because the AG could remove her, had limited statutory duties, and limited
jx
3. Did the good cause requirement violate separation of
powers?
a. No b/c it did not expand the power of
courts or Congress
i.
Executive still had the
power to initiate prosecutions and
ii.
While IC was ensuring
that the laws are faithfully executed (so executive)
1. Prez
had some influence over special counsel b/c AG still accountable
a.
P
rez can do his duty via AG.
4. 4 factors for inferior officers
a. Subordinate to Principal
b. Certain, limited duties
c. Limited in jurisdiction
d. Limited in tenure
5. Unlike Myers b/c there is no attempt by Congress to
gain a role in removal of executive officials.
a. Here, president still has some power, so
its all good.
i.
Scalia Dissent- this is
bullshit!
1. In
Humphreys Executor, good cause was a constraint on
president, here it grants power to him
2. Should
nt be any executive branch members who arent accountable to
the president
vii.
Two tests
1. Humphreys
a. Is the official quasi-legislative or quasijudicial?
i.
If yes, Congress can
limit the conditions of removal.
ii.
If purely executive,
Congress cannot.
2. Morrison
a. If the removal restrictions impede the
presidents ability to perform his constitutional duty, and the functions of the
officials in question must be analyzed in that light, then the removal restrictions
are unconstitutional.
b. Any removal restriction depriving the
President of any executive power is unconstitutional.
3. Legislation
a. The Legislative and the Drafting of Laws
i.
Initiate bill in three ways:
1. Introduce own bill
2. Incorporate bill in other legislation
3. Add idea as an amendment to other legislation
4. Bills can be drafted by anyone.
a. Member of committee, staff, lobbyist,
executive branch (must be introduced by a member of Congress)
i.
Legislative history starts
here (press release, one pager, posts)
ii.
After introduced, sent to committee
1. Factors in determining which committee:
a. Views of members
b. Expertise
c. Fullness of docket
d. Who is the chair?
i.
This person will lead the
discussion.
e. You want to be on the committee!
i.
People will draft bills in
a way to influence parliamentarians.
2. Most bills die in committee
a. Chair can obstruct
b. Committee can recommend it to not
pass
c. Inaction
3. House can file a Discharge petition
a. Forces a bill out of committee to the
floor for consideration
i.
If over half of the House
votes, it goes out of committee.
1. This is
how you can go over the Chairs head to get a bill out of
committee.
4. Legislative History
a. Committee reports, hearing testimony,
markups
5. Committees are good because:
a. Expertise
b. Filter out waste of time bills
c. Oversight hearings
i.
Investigative scandals
d. Legislative hearings
6. What happens in a committee?
a. Hold a hearing
i.
Talk about pros/cons
ii.
End up with recorded
hearing testimony
b. Then we get markups
c. Then a committee report
i.
Written by staff.
1. Why
dont congressmen write bills themselves?
a.
T
heyre BUSY
i.
T
rying to get reelected
ii.
F
UNDRAISING.
b.
T
hey probably didnt even read the bill.
i.
T
hese things are long.
If it gets out of committee, goes to the floor
1. Bill is put on one of four floor calendars
a. Bills can be brought up at anytime
b. Minor legislation can be brought up by
unanimous consent or a motion to suspend the rules
c. Major legislation is sent to the rules
committee
i.
Determines how and
what procedures will be used for debate
1. Limits
on amendments
2. Order
of voting on amendments
2. After being scheduled, bill goes to floor debate
a. Can be debated in Committee of the
Whole
b. To proceed, a voice, standing division,
or recorded vote is held
i.
Voice Vote
1. Everyo
ne yells out yea or nay and presiding officer decides.
iii.
a.
I
NEFFICIENT
i.
A
nd usually rigged!
ii.
Standing Division
Vote
1. Everyo
ne stands for yes or no and they are counted.
iii.
Recorded Vote
1. House
has electronic version
2. Senate
just does roll call vote.
c. Debate must be brief and germane
d. Any speeches, filibusters will go in the
record.
i.
Colloquy
1. Orchest
rated conversation btwn two people
a.
A
meticulously orchestrated dance intended to create a
shared meaning.
3. First, the House
a. Begin by deciding the Rules (VETO
GATE)
i.
going to happen.
b. Committee of the Whole will decide
c. Also could make it in by unanimous
consent (VETO GATE - Only need one!)
i.
OR a motion to suspend
the rules (HUGE VETO GATE - need to pass)
1. Debate
limited to 40 minutes, no amendments and need a majority
4. Then, the Senate
a. Motion to proceed
i.
But can filibuster (VETO
GATE)!
1. Need
to get cloture.
2. Can
filibuster bills, but NOT appointments.
a.
I
f you could filibuster appointments, spots in government
would just stay unfilled!
i.
A
nd the cost of allowing an appointment (worstcase scenario) is much less than bills.
3. Can
filibuster at different points in the process
a.
W
hy would you?
i.
T
o eat up time!
4. Talking
filibuster - Actually talking
5. Regula
r filibuster - Just threatening to do it.
6. Pros
a.
P
rotects the minority
7. Cons
a.
J
10
c. Why are people putting out all these bills (including ones that probably wont
pass)??
i.
Because you want your constituents to think you are doing something!
d. Theories of Legislation
i.
Public Choice Theory
1. Members of Congress only care about reelection.
a. Two paths:
i.
Public interest groups
1. Statute
s reflect self-interest of interest groups that lobby to Congress
ii.
Constituent support
ii.
Social Choice Theory (Problem of Cycling) p. 136
1. Ranked voting, depends on rational actor (As does
Public Choice Theory)
iii.
Positive Political Theory
1. Game theory, tries to ensure legislation reflects its own
preferences but takes into account the preferences of all those involved in the process
a. Median legislation, etc.
e. The 1966 Motor Vehicle Safety Act
i.
Industry against state regulation
1. Patchwork approach
2. Raise costs
ii.
Industry Supports federal regulation
1. Inevitable
2. Uniformity preferable
iii.
Naders impact
1. Unsafe at any Speed
a. Public backed him
i.
Morally good thing to
do, and will get you reelected if you join!
iv.
Interpret Statutes broadly when trying to correct something
1. In this case highway safety
2. Ribcoff who lead the initiative, he had his own interests
in pushing this bill (not just to please voters) Started this idea as governor before public
outcry
v.
Secretary shall establish orders for appropriate Federal motor vehicle
safety standards
1. Minimum standard for motor vehicle safety which is to
protect the public against unreasonable risk
f. The Senate Report and Structure of Statutes
i.
Principal Operative Provisions-heart and soul What the statute is
trying to achieve
1. 103 of MVSA
ii.
Subordinate Operative Provisions- goals which are supportive of the
principal provisions or exceptions to the principal
iii.
Implementation-muscle of the statute. Enable statute to do what its
purpose is
1. 106 of MVSA
iv.
Specific repeals: 117 of MVSA
v.
Preemption provision: bars application of state law
1. 103(d): states cannot enact own standards, must be
identical to statute (can establish higher standard for equipment procured for state use)
vi.
Savings Clause- Express preservation of certain aspects of state law
vii.
Last in time rule -The most recent congressional act trumps older
legislation
viii.
Appropriations Committee - Within Congress, decides exactly how much
agencies get
ix.
Senate Report
1. Aids to the chair of the Commerce Committee wrote it
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12
viii.
13
Context following
enactment
iii.
Absurd results will
follow from such a broad meaning otherwise.
2. When text and legislative history conflict, which controls?
a. Arguments for text
i.
Text was passed
ii.
Leg. history may not be
accurate anymore
b. Arguments for leg. hist
i.
May be mistakes in the
text that were overlooked
3. Sometimes Congress wants deliberate ambiguity.
a. So the court incentivizing Congress to
write clearer statutes may not work.
i.
AND it may go directly
against checks and balances.
b. Text-Based Tools
i.
Ordinary v. Technical Meaning
1. Nix v. Hedden (1893) p. 238 Tomatoes
a. Whether tomatoes are a vegetable or a
fruit w/in the context of the 1883 tariff act.
b. After consulting favorable dictionaries,
court relies on ordinary linguistic and culinary usage over technical definition
because law was aimed at merchants not botanists
i.
Tomato = vegetable
ii.
Assume industryspecific b/c it is a tariff statute and doesnt explicitly define.
iii.
Judges made up the
vegetable definition
c. Courts generally accept the common
meaning of a word from
i.
Common law
ii.
Who the audience is
iii.
Industry standard
iv.
Maybe not if the word is
used in a technical context
d. Common Usage is whatever the
principal usage is.
ii.
Rule of Lenity
1. Muscarello v. US (1998) pg. 242 Gat in the trunk
a. Whether the phrase carries a firearm
in a penal statute encompasses bringing firearms in a locked compartment of a
vehicle.
b. Breyer focused on the meaning of the
word carry in its strict dictionary definition
i.
Limited sense of on the
person was a rare use of the word
ii.
Also looked at
etymology and use in popular writing (looking for context)
c. Dealer w/gun in locked glove
compartment, 2 dealers w/a bag of guns in the trunk
d. Majority: Fall w/in statute b/c
i.
Dictionaries (other than
Blacks)
ii.
Bible
iii.
of surveyed press
14
Not sufficiently
iii.
Code Canon p. 265
15
L
egalizes such acts incidental to a lawful activity.
ii.
S
o Congress foresaw indirect being illegal.
iii.
Amendments are made
to have real & substantial effect (CANON OF INTERPRETATION).
iv.
Majority (Stevens) uses
congressional definition of take in 3(19)
v.
Dissent (Scalia):
1. Majority
s analysis of of legislative history predates harm addition.
2. The
word take didnt lose its original meaning just b/c it was defined
in the statute
3. Looked
at the term take everywhere in the statute and found the habitat
modification provision didnt make sense in a list of tools
forbidden for the taking of animals b/c the list didnt include
tools usually used to modify habitats (ejusdem generis)
2. Linguistic Canons
a. Grammar or syntactic, how words fit
together within a particular provision
b. Noscitur a sociis a word is known by
the company it keeps
i.
When a word appears
in a list, meaning is derived from those surrounding it
ii.
See Sweet Home. The
rule is often applied when Congress uses a broad term in a list in order to
avoid giving the single word too broad a meaning
iii.
Like ejusdem generis,
this does not apply when the court cannot find a common theme in a
group of words
c. Ejusdem generis
i.
List followed by a
general term
1. (A, B,
C, D & the like)
ii.
Look at shared
attributes of the items
iii.
If a series of specific
items ends with a general term, the term is limited to subjects
comparable to the preceding specifics
d. Expressio unius est exclusio alterius
i.
Expression of one is the
exclusion of another
1. See
Holy Trinity
a.
D
idnt include ministers in the exceptions.
e. Punctuation
i.
Alone not enough to
sustain or contradict an interpretation, but it is sometimes used to confirm
an interpretation
ii.
Ct. has held that
16
17
18
a.
B
oth definitions acceptable
3. Crimina
l code (Whole Code)
a.
D
efined both ways
4. Federal
money laundering statute (Whole Act)
a.
A
mbiguity persists
5. Apply
the Rule of lenity in the face of ambiguity
iv.
Majority: (Scalia) term
wholly ambiguous from statute
1. Plaintiff
s attempts to clarify using later statutes is dumb
2. Rule of
lenity requires court to use profits
a.
P
urpose of rule of lenity
i.
N
otice
ii.
J
ustice/liberty
v.
Dissent: (Alito)
knowledge of profitability
1. Should
have looked at how proceeds was normally defined in the
context (customary meaning)
2. Neither
purpose is aided by this ruling.
a.
D
eterrence by not allowing criminals to fund luxurious
lifestyles
b.
I
nhibit growth by not allowing dirty money to fund growth
of criminal empire.
c.
C
riminals that are not profitable would get off
3. THE RULE OF FIVE
a. Most important rule in constitutional law.
i.
You need five votes to
win.
1. Only
need four agreements.
4. Canon of constitutional avoidance
a. Requires a court to avoid interpretations
19
20
21
1. Noscitu
r - close working relationship
2. Judges
decide law, not policy
3. No
oxford comma after policymaking level so we should read the
two parts together.
v.
Dissent:
1. Majority
s rule overbroad, contrary to stare decisis.
a.
P
laces high burden of specificity on Congress
i.
T
his rule should only determine whether a
statute applies to a state at all (ADEA did)
b.
C
oncur in judgment judges are on a policymaking level
e. Clear statement rule & federalism:
i.
Constitutional value of
dual sovereignty
ii.
Limits preemption to
clear intent
iii.
Federalism enhances
diversity
iv.
Reasons against clear
statement rule:
1. It just
muddles up the law.
2. When
unclear Court gets to actually create policy
3. Dual
sovereignty led to civil war
4. Just
read the text and interpret this statute
5. Federal
rules promote uniformity (states history of discrimination)
6. Presumption against preemption
a. Questions of whether a federal statute
preempts other state laws
i.
Courts can apply the
preemption narrowly
1. Only
when necessary
b. Rests on the notion that the historic
police powers of the States are not to be superseded unless that was the clear
and manifest purpose of Congress
i.
Federal state balance
should not be disturbed unintentionally by Congress or unnecessarily by
the courts
c. This canon functions in a weaker
fashion than federalism clear statement rule
d. Two Types of Preemption
i.
Conflict preemption
1. When a
22
23
c. Why:
d. Purposes for which history was
created
i.
Committee reports
ii.
iii.
24
organizations in 501(c)(3)
b. Analogous to take/harm in Sweet Home
i.
Failure to define terms,
so the agencys interpretation is fair to use.
c. Changed circumstances may be
built into the definition of public policy.
i.
Public policy from its
inception was intended to be contextual
d. Why IRS?
i.
Authority has been
delegated
ii.
Inaction by Congress
e. Majority
i.
Implicit congressional
approval of IRS policy
1. 13
attempts to change in 12 years, never emerged from committee
2. Codifie
d similar exception for racist social clubs
ii.
Charitable
organizations/gifts cannot violate public policy
1. All 3
branches of govt declared racial discrimination contrary to public
policy
f. Dissent
i.
This is not supported by
a plain reading
1. Statute
has been amended numerous times w/o adding public policy
ii.
Neither court, nor the
IRS, is empowered to make the policy judgment the IRS & majority
opinion make.
g. Canon: Court should go beyond the
literal language of a statute if relying on it would defeat plain purpose of the
statute.
2. Leegin Creative Leather Products v. PSKS, Inc.
(2007) p. 387
a. Whether the practice of setting minimum
retail prices should continue to be considered per se illegal as per Dr. Miles, or
should the practice be treated to full rule of reason analysis.
b. Majority (5)
i.
Vertical price restraints
can have positive or negative effects
1. Adoptin
g a per se rule risks proscribing procompetitive conduct
2. Sherma
n ill suited to stare decisis treatment
c. Dissent (4)
i.
Repeal of fair trade laws
cuts against majority.
ii.
No evidence exists of
any change warranting a departure from per se.
1. Court
blows @ rule of reason
2. Change
should be gradual.
iii.
Wisconsin Right to Life
25
factors
1. Stare
decisis more rigidly applied in statutory than constitutional cases
2. More
leeway in overruling recent cases deemed wrongly decided
3. Previou
s cases create unworkable legal regime
4. If a
decision unsettles the law it may be overruled
5. If a
previous decision involves property or contract rights, where
reliance interests are involved, argues against overruling a case
6. Is the
rule embedded in our national culture
iv.
All factors lean in favor
of retaining Dr. Miles
v.
Common law rules
should be changed gradually
1. eg.
exceptions for new entry
3. Factors to consider for changed circumstances
a. Shifts in majority support
b. Public opinion
c. Public policy
d. Other laws passed
e. Cost benefit analysis
f. New facts
i.
e.g. changes in
technology
g. Age of statute
h. Dynamic terms that incorporate context
by reference
i.
Updating is built into
them.
d. Theories of Statutory Interpretation p. 401
i.
Intentionalism
1. Specific issue
2. Goal:
a. What meaning did Congress have in
mind when it wrote the statute?
3. Advantages:
a. Helps with ambiguity, constitutional,
legislative supremacy, retains original intent, limits judges placing their own
opinions into law and gives authority to Congress
4. Tools:
a. Leg. History, committee reports, floor
speeches, etc.
5. Criticism:
a. Cherry picking leg. history,
b. No unified intent
i.
But there must have
been some intent to pass bills
1. Someth
ing did get passed!
a.
A
nd we should really only care about who won.
c. Constitution Art. I: each house can set
26
these!
d. Too many people
e. Disagreement b/t voting parties look
at passing majority
ii.
Purposivism
1. What did they think then?
2. General question/purpose of law
3. Goal:
a. Examine what problem Congress
sought to address and cure
4. Advantages:
a. Remains loyal to the outcome Congress
sought to achieve
b. Similar to intentionalism, but more
general/broad
5. Tools:
a. Text & legislative history
6. Criticism:
a. Purposes are often hard to determine
and there are usually several purposes for a piece of legislation
b. Restrained by text if it mentions
purpose.
7. Difference from Legal Process Purposivism
a. LPP is what a Reasonable Congress
(made up of reasonable people #lol) would have pursued.
b. LPP is a response to the purposivism
problem of no unified purpose
i.
Provides a unified
purpose of reasonable people.
iii.
Legal Process Purposivism (Hart & Sacks)
1. Reasonable people pursuing reasonable purposes
reasonably
a. Tied to a non-specific reasonable
Congress
2. Advantages
a. Reasonableness imputes a reasonable
purpose to the legislature
i.
Solves coherence
problem
ii.
Creates an objective
standard
3. Criticism:
a. Judges have a lot of discretion to
determine what is reasonable
i.
Response - In every
type of interpretation the judge will just pick the evidence that suits his
argument anyway.
4. We would hope Congress is filled w/ reasonable people.
a. So cant just dismiss Congress as
unreasonable just to create your own agenda.
5. Should only look @ most specific legislative history
6. Text is a constraint to purpose
a. Legislative history cannot fly in the face
of the text
iv.
Imaginative Reconstruction
1. What would they have thought then?
27
28
scriveners errors.
d. Lazy for judges to not research other
materials (public choice theory)
e. Why is it the courts job to dictate to
Congress to be more specific?
i.
intentionally ambiguous.
1. And
Congress doesnt follow the rules the court asks it to follow
anyways!
f. Strict/narrow construction of statutes is
judicial activism is not following legislative intent.
g. Separation of powers problem
i.
Courts cannot force
Congress
1. Marsha
ls power to the court by limiting statutes and keeping
common law broad
vi.
Dynamic Interpretation (Nautical Metaphor)
1. Applies to situations Congress could not have foreseen
(contra imaginative reconstruction - something the Congress should have seen but
didnt include)
2. Goal:
a. Look @ legislation through the eyes of
changed circumstances
i.
Changes in technology,
policy, etc.
b. Looks @ modern reasonableness rather
than reasonableness @ time of enactment
3. Advantages:
a. Allows interpretation consistent with
modern values
4. Tools:
a. Text, legislative history, current opinions,
legal developments
i.
WIDE variety.
5. Criticism:
a. Does not follow original intent of
legislature
b. Judicial Activists
i.
Counter: Sometimes
legislature enacts common law concepts into statutes so courts have the
freedom! (Posner)
5. Regulation-Statutory Implementation by Agencies
a. The Administrative Procedures Act
i.
553 - Notice & Comment Rulemaking (Informal Rulemaking)
1. Rule - a general or particularly applicable statement
made by an agency.
a. rulemaking includes amending and
repealing rules.
b. Rule vs. Order
i.
An order is a final
disposition that is not a rule.
29
1. Includin
g licensing
a.
a
license is an agency form of permission.
b.
L
icense is a subset of orders.
2. Orders
are made through adjudication
a.
R
ules made through rulemaking.
2. Applies anywhere BESIDES:
a. Magic words
i.
on the record after
opportunity for agency hearing (formal rulemaking)
ii.
556-557
b. 553 (a)(1)-(2) exceptions
i.
Military or foreign affairs
ii.
Agency management or
personnel or public property, loans, grants, benefits or contracts.
3. Prompted from:
a. Petition by private citizens
b. Prompting from govt official
c. Agencys own volition
4. First step is to publish a Notice of Proposed
Rulemaking in the Federal Register
a. Must include:
i.
Legal foundation for the
rule
1. Authorit
y
ii.
Rules proposed
substance or issues
1. Why,
when & nature
iii.
Notice of public
proceedings
1. Backgr
ound what
b. Notice of Proposed Rulemaking
(NPRM)
i.
Legal purpose: provide
notice of time, place & purpose
1. Satisfy
APA 553
ii.
If unhappy with
Agencys response to comments:
1. Political
process
2. Sue
under APA,
a.
30
553 didnt follow procedure
3. Petition
agency to reconsider
4. Go to
media
c. Publishing requirement does not apply:
i.
Subsection A is for
general day-to-day stuff
1. Also
general guidance documents for the public
a.
I
nterpretive rules, FAQ, How to use Obamacare, etc.
ii.
Subsection B - good
cause that notice and public procedure are impracticable, unnecessary
or contrary to public interest.
5. Next, the agency must accept comments on the rule
from the public
a. Obligation to consider all comments
i.
Time-consuming.
b. Comments received after the deadline
can be considered or reserved for supplemental rulemaking
6. Then, the agency issues a Final Rule
a. Must include the rationale and legal
authority
i.
General basis and
principle.
7. If the agency wishes to rescind or revise a rule, they
have to go through this process again
a. If parties dont like the new rule, can
petition for a new one, but unlikely to succeed
8. All proposed major rules must include a cost-benefit
analysis
a. Major Rulemaking
i.
$100M+ in economic
impact
b. Regulatory Flexibility Act requires
agencies to consider the effect of regulations on small businesses and local
governments
ii.
554 - Adjudications (Formal Adjudications)
1. On the record hearing
2. When does 554 apply?
a. On the record after opportunity for
agency hearing
i.
So 556 & 557 apply.
b. 554(a)(1)-(6) EXCEPTIONS
i.
Matter subject to a
subsequent trial of law and facts de novo in a court
ii.
Selection or tenure of
an employee
1. Except
ALJ
iii.
If decisions rest solely
on inspections, tests or elections
iv.
Conduct of military or
foreign affairs functions
31
v.
Cases in which the
agency is acting as an agent for a court
vi.
Certification of worker
representatives.
3. Notice is generally the same as 553
a. Facts & law vs. General info
i.
Different b/c its a trial
now.
4. Similar to a judicial bench trial, but conducted by an
Administrative Law Judge
a. Parties get the opportunity to present
info
i.
If they cant consent to
a solution, we go to 556-557
1. Decisio
n can be appealed within the agency
5. 554(d) - Employee of the agency (essentially acting as
a judge) can make decisions.
a. Must preside at reception of the
evidence
i.
(1) - Cannot consult w/
parties unless on notice for all to participate
ii.
(2) - Cannot be subject
to an employee or agent involved in performance or investigation by the
agency.
iii.
These exceptions
exist to maintain independence
1. We
dont want these people to be biased!
6. Can there be an adjudication where we dont use 554,
556 or 557?
a. Informal adjudication
i.
If it is not required in
554(a)
1. No
opportunity for a formal hearing.
ii.
Why arent these just
rules?
1. They
may not fit in rules
a.
e
.g. a license application that doesnt require a hearing
i.
32
33
small percentage.
ii.
No insurance discounts
iv.
?
v.
Yet they ignore the
insurance companies estimates of billions of dollars of losses
resulting from recission
1. And
they completely ignore social costs.
5. Education programs are alternative
a. But no evidence these could have (or
ever HAVE) worked.
c. Agency Documents II: Magnet Sets and Fuel Economy
i.
What are the statutory options the agency has?
1. Acting under CPSA
a. 7 allows them to promulgate a safety
standard.
i.
This is what they want
to use here.
b. 8 allows them to create a ban on
magnet sets.
ii.
Statistical life
1. The life of a person who may die / be saved in the future
a. NOT how much a specific persons life
is worth.
i.
But a general
prediction number.
2. How do we value these?
a. Willingness to pay
i.
Big variations based on
ability to pay.
1. A rich
guys value of things is obviously different than a poor guy.
ii.
Large variations based
on demographics.
iii.
Russian roulette
example
34
1. People
are willing to pay a lot more to go from 1 bullet to 0 than they are
to go from 3 bullets to 2
a.
I
RRATIONAL
i.
I
ts the same decrease in probability!
b. Willingness to accept
i.
Ex. What people
demand in terms of hazard pay for dangerous occupations.
iii.
How do we value things that wont occur until the future?
1. Discount Rates
a. Tells you the present value of something
in the future.
i.
$10 today is worth more
than $10 tomorrow b/c of inflation.
1. If you
invest $10 today, you will have more than $10 in 10 years.
2. Multipliers
a. Standard used for various types of
spending
i.
Roadworks (1.3)
ii.
Unemployment
insurance (1.7)
iv.
Cost-Benefit Analysis
1. A decision rule, not a substantive rule
a. PROS
i.
Full accounting of
everything related to a topic
ii.
Fewer cognitive
problems than more qualitative methods
iii.
Forces you to prioritize
and focus on magnitudes (POP POP!)
iv.
Helps w/ setting
performance or goal-based standards as opposed to focusing on means
b. CONS
i.
Lots of things arent
quantifiable!
ii.
Complexity & indirect
costs.
1. Particul
arly in health care & environmental.
iii.
Distributional fairness
1. Should
we value costs on low-income people MORE?
iv.
Hard to quantify
innovation
d. Agency Decisionmaking: Economics, Science, and Politics
i.
Statutory Analysis
1. An agency must ensure that its regulations are within
the scope of its statute and are consistent with the terms of its statute
2. Only have to explain the reasons which support their
decisions, not both sides
3. Cannot issue retroactive regulations unless the
power is expressly granted by Congress
35
ii.
Pros
Cons
Distributional fairness
iii.
Scientific Analysis
1. Scientific studies can be plagued by intentional or
unintentional bias, premeditation, and experiment design problems
2. Agencies are expected to gather information about risk
risk assessment and then determine how to respond to such risk, risk management
3. Toxicology, epidemiology, and statistical analysis all have
inherent problems which can be difficult to account for
a. Selection biases and other statistical
errors.
4. Science is hard. So are experiments.
5. Agencies are often required to use certain scientific
authorities as baselines or approval for their regulations
iv.
Political Analysis
1. Agencies often consider how the public is likely to
react to a regulation and whom a regulation is likely to affect
2. Agencies also consider the preferences of the President
and members of Congress when designing regulations
3. The team design of an agency can also have a
significant impact on the shape of legislation and the level of political control
e. Judicial Review IV: Chevron
i.
Chevron v. NRDC (1984) p. 531 Most important case in Admin. law
1. Whether, in the absence of legislative directive or history,
the EPA administrators use of a bubble concept to define statutory pollution sources
under the CAA was within his powers.
2. EPAs use of bubble concept is a reasonable
policy choice to make
3. Agency definitions change, and new definitions still
deserve the deference of the court.
4. 2 Step test
a. Is the statute ambiguous?
i.
Has Congress directly
addressed the issue?
b. If the statute is ambiguous, court will
defer to a reasonable agency interpretation
i.
Why defer to agency
interpretation?
1. Congre
ss, by not including this, has either explicitly or implicitly
delegated this authority.
a.
D
elegation justification
i.
A
36
37
Step 2
1. Back to
38
39
& do not receive classroom instruction should be considered employee under 2(5) of
the act
2. Cedars-Sinai held they were not employees
a. But Court overrules this and finds
that they should get employee status
3. Employees because:
a. Compensated (stipend)
b. 80% time w/patients
c. Non listed under exceptions (expressio
unius)
d. NLRB is only entity treating them as
students
e. No grades/exams
f. Benefits
4. Students because:
a. Still learning
b. Corrupt academia
c. Very low pay (stipend)
d. Leg. history
i.
1979 bill failed to pass
5. Dissent: Change in rules only because of change in
board membership.
iv.
Guidance Docs
1. 553(d) Guidance
a. Interpretive rules
b. Statements of policy
c. Enforcement manuals
d. Excluded from notice & comment
2. Why do agencies like guidance documents?
a. Dont have to go through the rulemaking
process
i.
Less procedure
ii.
Less administrative
hurdles
b. De facto enforceable
c. No need to consult outside parties
i.
Less opportunity for
public input
1. So
agency can go about own agendy
d. Greater flexibility in amending
i.
A rule needs another
rule to change it
1. Guidan
ce documents may require much less.
e. Little executive oversight/review
3. Arguments Against
a. Too easy to change
i.
contra; one bite
doctrine
1. Has to
be oversight once they create reliance.
a.
40
laws.
b. Four year terms
i.
So we may get drastic
changes in policy
1. e.g.
Carter/Reagan
c.
Partisanship
i.
May be one sided
d. Agencies are experts, prez isnt!
e. Expansion of executive power
ii.
Free Enterprise Fund v. PCAOB (2010) p. 38
1. Whether dual tenure in a quasi (judicial, executive, &
legislative) agency contrary to Art. II & the vesting clause
2. PCAOB - non profit board (under SEC umbrella)
a. Power to regulate multiple aspects of
accounting
3. Quasi-judicial - Adjudication, etc.
4. Quasi-legislative - N&C rulemaking, guidance docs,
etc.
5. Quasi-executive - Enforcement, civil penalties, etc.
41
42
30 days
v.
p. 673 (2)(A)-(C)
2. Established the White Houses authority to oversee
regulatory planning and review through the OMB and OIRA
3. Planning is monitored through the Unified Regulatory
Agenda and Regulatory Plans
a. Agenda includes all planned regulatory
action
b. Plans only include significant actions
c. Both submitted to OIRA
4. Significant or major actions are regulations
a. With $100 million impact on the
economy
b. Interfere with other agency action
c. Alter the budgetary impact of
entitlements/grants or
d. Raises novel legal or policy issues
5. Communication btwn. agency & non-govt
employees
a. Only administrator can communicate w/
these people regarding substance of a regulatory action.
i.
These communications
will be subject to guidelines
1. Must
invite agency rep
2. Forwar
d to issuing agency
3. Must
disclose to the public.
4. We
want to prevent bias!
6. OIRA can approve regulation by the agency or send it
back to be altered
7. These rules apply to agencies as defined in 3
a. Does not include independent agencies
i.
Ind. agencies included
under the planning rules
8. EO 13,563 is different because it (Obamas EO
43
reaffirming 12,866)
a. Includes scientific integrity
b. Regulations as a means of innovation &
integration
i.
Want to incentivize
i.
moving forward
c.
Science
sophisticated.
d. Internet public participation
e. Agency flexibility
f. Different view of CBA
i.
Must be very clear that
benefits outweigh costs.
g. Retrospective Analyses of Existing
Rules
iv.
OIRA
1. Reagan did the first OIRA resolution
2. 12,866 Billy Clinton
a. CBA
i.
Include qualitative
values
ii.
Net benefits
3. Planning process
a. Meeting (VP & advisers)
b. Agenda setting (executive &
independent agencies)
i.
OIRA effects
1. Second
check on agencies
2. Reputat
ion effects
a.
R
ep. diminished by lots of reviews/rejections
3. OIRA
can really slow things down.
ii.
44
d.
H
owever,
i.
M
ay deter bad/pseudo science
OIRA Return and Prompt Letters
1. OIRA can write two kinds of letters to agencies
a. Return Letters
i.
Remit regulation to an
agency for more consideration
1. In letter
form so interest groups know they are working on behalf of their
interests
b. Prompt Letters
i.
Address an agencys
plans for the year or
ii.
Encourage agencies to
examine a certain issue
c. Both published to the public
i.
Establishes a paper trail
to build further action on
2. Li batteries
a. Vague
b. Purpose: show lobbyists action has
been taken
3. BEACH
a. Asking for info on EPA action plan
b. Why?
i.
Election year
ii.
Deadline recently
passed
4. Defibrillators
a. Punt study coming down the pike
(official story)
5. Tire pressure
a. OIRA-reevaluate indirect tire pressure
i.
not most cost efficient
rule
b. OIRA study
i.
4-9% --> not statistically
significant (no evidence of benefit)
ii.
NHTSA rejects your
statistics are garbage
6. Sunstien
a. OIRA writes very few return letters
i.
Usually agencies
withdraw regulations they think will be returned
b. Agencies (not OIRA) conduct the CBA
c. Indefinite delay
i.
OIRA can continually
hold up/send back regulations
d. Coordinating role among agencies
e. Public participation
i.
Appeases constituents,
no new information
f. OIRA doesnt consider political advice
i.
Claim: OIRA not
v.
45
political
1. Aggre
gator of information
7. Ozone ruling (1858 handout)
a. OIRA slow walking EPA ozone rule
b. Novel issues prevents agencies from
setting precedents & putting forward legal theories willy nilly
c. Open-door policy
d. CBA of utmost importance
e. Review of guidance docs
i.
White house is a they,
not an it
f. Some decisions kicked all the way to
prez
8. Improved disclosure is becoming a bigger concern for
agencies attempting to meet government transparency standards
a. Full disclosure makes it possible for
more govt data to be peer reviewed
9. OIRA review supported b/c
a. Increases agency accountability to the
political offices
b. Avoids agencies losing sight of their role
in the bigger picture of govt
10. Critics say OIRA process imposes a cost-based veto
that merely inhibits or delays necessary and beneficial agency regulations
vi.
Real challenges for agencies
1. Getting rest of executive branch to buy in
2. Intentional slow walking process
3. Nitpicking & fact checking from OIRA
vii.
Presidential directives
1. Can assert control of agency action by issuing preregulatory directives in the form of official memos to executive heads
2. Tend to promote rapid agency response
a. Garner more public attention than letters
promulgated by OIRA
b. Judicial Control
i.
In general
1. Courts can only review agency action ex post by
examining challenges to agency decisions
a. Most significant agency action is subject
to judicial review
2. APA specifies the scope of judicial review in 702
a. Arbitrary and capricious standard
ii.
VT Yankee Nuclear v. NRDC (1978) p. 845 no Monday morning
quarterbacking
1. NRDC challenged a license granted to the power plant
b/c the agency used informal rather than formal rulemaking
2. Licensing process required two permits
a. Construction permit &
b. Operating permit
i.
NRDC opposed to VT Y.
getting this one.
3. Hybrid rulemaking: informal rulemaking + formal
adjudication
a. Arose from court imposed additional
requirements on otherwise informal rulemakings
b. Practice ended as a result of VT
Yankee.
46
47
shall...file tariffs.
3. Scalia (Majority): NO
a. Not supported by the meaning of
modify
i.
minor changes
b. 120 days exception
i.
Tariff must exist for 120
days to matter
1. If
Congress kept the extension exception, why would they freely
allow you to remove the restrictions?
a.
W
ould be hiding elephants in mouseholes
c. Fundamentally changes regulatory
regime
d. [ignores 203(c) entirely]
e. Modify is clear, meant in narrow sense
f. Policy argument
i.
Congress should
address, court only interprets statutes
4. Stevens Dissent [treats it as a step 2 case]
a. Themes
i.
Flexibility of regulatory
state
ii.
Changed circumstances
1. Market
has changed from monopoly to competitive
b. Permissible
i.
Purpose of the statute
(antitrust)
ii.
Blacks definition of
modify:
1. Limit
or reduce
iii.
Expressio unius-1. Only
exception to modification authority is not extending 120 notice
period.
iv.
Textual arguments
1. Doesnt
specifically limit what the FCC can do.
2. 203
(c)
a.
P
rohibits service w/o tariffs unless the Act specifically
gives this authority.
i.
S
uggests there is a scenario where the Act does
give this authority
v.
Modify baseline Leegin
argument
1. FCC
gradually reduced tariffing requirements(not a sudden change)
48
2. No
Scalia response
ii.
FDA v. Brown & Williamson Tobacco Corp. (2000) p. 769
1. Whether the FDA has the authority to regulate tobacco
products as a drug or device under the FDCA as tobacco products are customarily
marketed
2. OConnor majority
a. Reviewing court should not look at
legislation in isolation
b. Contextual ambiguity
i.
Whole Act: If a
device/drug, the FDA would be required to ban them as misbranded.
1. Danger
ous to health & no directions for use
a.
T
herefore, FDA must ban if under its purview
i.
B
ut such action is barred by statute
c. Whole Code
i.
Six other tobacco
statutes passed since FDCA
1. This
implies that cigarettes will exist.
2. None
give FDA authority
3. FDA
claimed it did not have jx over tobacco repeatedly
a.
C
ongress relied on what FDA was saying, so its
effectively built into the statutes.
3. Breyer Dissent (4)
a. Majority focus on intended
i.
Intent does not have to
mean claim
1. Intent
can be inferred from circumstances
b. Follows the purpose of the statute
(reducing deaths from tobacco)
c. Industry documents fitting the drug &
device definitions
i.
Addictive and designed
to enhance addiction
d. Rejects whole code argument
i.
Not inconsistent with
FDA jx does not preclude FDA authority
e. Denial of jx changed circumstances
i.
Change of
Administration policy
1. New
health studies, tobacco companies knew of danger and lied
about it.
f. Broad delegation of power to FDA
g. Majority opinion counterintuitive
iii.
Similarities b/t MCI & Brown & Williamson (Also, power away from
49
agencies)
1. Statutory scheme defeats agency interpretation
2. Elephants in mouseholes
a. B & W tobacco regulation (elephant)
b. MCI eliminating tariffs (elephant);
modify (mousehole)
3. Major question doctrine - Courts will not infer that
agencies can determine major policy absent clear legislative intent
4. Chevron step 1 cases
a. No clear congressional intent
b. Excluding things from definition rather
than defining authority altogether.
5. Delegation; intelligibile principle (Whitman)
a. Can say anything as long as it isnt do
whatever you want (LENIENT)
i.
Statutory based
argument, not constitutionally based
b. Argued as backdoor ways into
nondelegation doctrine using Chevron.
6. Clear Statement Rule - both cases demand it
d. Judicial Review VI: Chevron and Mead
i.
US. v Mead Corp. (2001) p. 786 Chevron Step 0
1. 46 customs offices organized under a HQ, issue 15,000+
letters/year
2. Whether tariff rulings are entitled to judicial deference
when they are not promulgated through notice or comment rulemaking
3. Majority:
a. Indication of delegation by Congress
i.
Authorization of
rulemaking/adjudication
b. When Congress has delegated to an
agency the power to make rules and the agency acts in exercise of that
authority, the agencys action qualifies for Chevron deference
c. STEP ZERO (Mead):
i.
Agency interpretation
qualifies for application of Chevron only if:
1.
Congress delegated interpretations that carry the force of law
AND
2. Agency
has exercised that authority
d. Not sufficiently formal for force of law for
agencys classification to receive Chevron deference
i.
Force of law
1. Delegat
ion of authority to make decisions with the force of law may be
shown in a variety of ways, as by an agency's power to engage
in adjudication or notice-and-comment rulemaking, or by some
other indication of a comparable congressional intent
2. How
do we figure out what carries the force of law if tariffs, i.e.
TAXES dont?
a.
N
umber of letters
i.
H
50
51
52
Failure to
provide/analyze evidence
c. Studies offered insufficient evidence
d. Used Rabbits & Chevettes study even
though agency itself said this study wasnt representative.
e. Motor Vehicle Safety more important in
statute than economic impact
i.
CBA carries less weight
f. No consideration of non-detachable
belts
i.
Must explain reason for
not addressing viable options
5. Rule from State Farm
a. Agency changing course must supply a
reasoned analysis
b. No support for politics as a factor in
decision making
i.
Cant just defer to
industry!
1. Agency
capture argument
6. Concurrence & Dissent
a. Change in Administration a solid reason
for reappraising standards
i.
As long as supported
by reasoning
7. Issues
a. Ossification of agency action
8. How much information is necessary?
a. ?
9. Incentives created for agencies
a. Do more everything! TAKE LONGER
i.
Studies
ii.
Work
iii.
Meetings
b. Consider broader ranges of alternatives
10. Comparisons of State Farm and Previous Cases
a. Chevron: Power to agencies
i.
Step 2 Constraint on
Congressional delegation (must be reasonable)
ii.
Interpretation of
ambiguous terms
b. State Farm: Power to courts
i.
Constrains agency
discretion
ii.
Applies to any N&C,
informal rulemaking, (including guidance documents)
1. Does
not apply to formal adjudications (substantial evidence standard)
or formal rulemaking
c. State Farm; MCI & B&W
i.
All limit agency power
while increasing Court power
1. State
Farm explanation insufficient
53
2. MCI &
B&W unclear
ii.
iii.
Drawing on State Farm & other decisions, to survive judicial review, at
minimum agency must (p. 430):
1. Base decision on relevant factors & no irrelevant factors
2. Consider all important aspects of the problem
3. Consider alternatives within the ambit of existing
regulation
4. Make rational connection between the evidence & its
conclusion
54
55
i.
A
pproval mechanisms like passing new laws.
b. Appropriations
i.
Can withhold or restrict
money (Not as hard as new legis., but still difficult)
1. Appropr
iations are yearly, so a continuous form of control
2. Discon
nect b/t appropriations committee and substantive mandate
committee
c. Legislative Veto
i.
Statutory provisions that
enable Congress to reverse an agency decision without enacting a new
statute
ii.
INS v. Chadha (1983)
p. 726
1. An
immigrants student visa expired and the AG suspended his
deportation, but House voted to oppose permanent residency
2. Any
legislative action of Congress must follow the Constitutional
requirements of bicameral approval and presentment to the
President
a.
E
fficiency does not preempt the Constitution
b.
O
nly 4 provisions in the Constitution that allow one House
to act alone and they are explicit and unambiguous
3. Holding
produced some controversy b/c it overturned all of the legislative
veto provisions in the law at the time (several)
4. Whitma
n avoids this concern in agencies by requiring them to abide by
an intelligible principle which has been approved by Congress
and the President
iii.
Presents concerns
about a current Congress having a shortcut to undermine the legislation
of a previous Congress
2. Indirect
a. Oversight Hearings
i.
CRA also requires
agencies to submit major rules and cost-benefit analysis to Congress
and GAO before rule takes effect
ii.
Includes the power to
request documents or testimony from agencies
1. Can
use a subpoena if agency fails to comply
iii.
Failure to obey a
congressional subpoena can place an agency head in contempt of
Congress which requires a bicameral resolution
iv.
Executive privilege
enables the president to protect the confidentiality of executive
communications from legis. or jud. investigations
56
ii.
Gorsuch/EPA example
1. What led to her fall from office?
a. Abolished enforcement office
b. Banned hazardous waste requirement.
c. Aloof manner
i.
Kept office in rival DOI
d. Hit list (allegedly)
i.
Morale killer regardless
of if it was true
e. Meetings with industry reps
f. Staff with no environmental
experience.
2. Moral of the story - Be nice to people!
a. If you try to win people over, you will
probably encounter less hostility when you do stuff they dont like!
iii.
Too Big to Jail example
iv.
Goals of Oversight Hearings
1. Political
a. Press
b. Interest group favor
c. Pressure regulators
i.
e.g. Anne Gorsuch
d. Narrative
e. Embarass/harass for political gain
f. Electoral
i.
Lets you claim to your
constituents that you supported stuff
1. Actually
passing bills is HARD!
g. Insider politics
i.
For others
1. Endors
e their bill so they will support you in future
ii.
For yourself
1. Think
House of Cards.
2. Policy
a. Message sending
i.
Effect on industry wide
practices
1. Making
an example out of someone
b. Effect on regulators
i.
Pressure for new
regulations
c. Change the narrative
i.
In turn, change public
opinion
d. Information
e. Legal consequences (perjury)
f. Foundation-building for the future
i.
Setting up the scene for
future legislation, etc.
g. Transparency
h. Harass (prevent anything from getting
done)
i.
Deplete political capital
ii.
Lost time
i. Raise the salience of an issue
57
3. Both
a. Shift blame/accountability
i.
Vertically or horizontally
b. Pressure regulators
c. Increase salience of issue
d. Build narrative
4. When will we see oversight hearings?
a. Divided govt
i.
More, more aggressive
oversight
b. If undivided, still will see if:
i.
Election coming up
ii.
Centrist senators
attempting to distinguish selves from non-centrist Executive
1. And
vice versa
5. As prez, how can you mitigate possibly bad
oversight coming up?
a. Divert attention by press
i.
Flood the media with
stories the day of the hearing.
b. Distance yourself
i.
Throw agency under the
bus
c. Issue narrowing
i.
But Senators do what
they want
6. How effective are oversight hearings at controlling
agency action?
a. Direct v. Indirect Control
i.
Congress really only
has indirect control
1. New
legislation or appropriations are the only direct control it has
ii.
Courts & Executive
have direct control.
b. Agenda-Setting
i.
Prez can be
aggressive/proactive with his agenda
ii.
Congress takes longer
iii.
Judicial has to wait for
a case.
c. Form v. Substance
i.
Prez controls form
ii.
Congress controls
substance
iii.
Courts control
substance
d. Expertise
i.
Congress can ensure
agencies are using their expertise by:
1. Using
statutes to force studies, etc.
2. Confirm
ation hearings
ii.
Prez has
appointments/removals
e. Ex Ante v. Ex Post
58
i.
ii.
ante
post
59