Posted: February 1st, 2023

Regulatory Scheme from Administrative Agencies

The Beginning of Administrative Agencies
Administrative agencies were formed as part of the executive government in nature, primarily planned for the implementation of the law and policies of the president. Congress holds almost all of the control over the bureaucratic organization. It includes the generation power and abolishment power of agencies. They also exist for the confirmation of presidential recommendations for the crew of the agencies. The Congress that does not include the executive branch has also made administrative agencies. They are also not dependent on presidential control. In 1789, Congress formed the first administrative agency to give pensions to injured or mutilated soldiers in the Revolutionary War. Agencies were also formed to contemplate the number of duties in the ending stages of the 1700s that were imposed on imported goods. The Interstate Commerce Commission (ICC)came into existence in the year of 1887. It existed for regulating commerce among the states and the regulation of which mainly included persons or property by interstate transportation carriers. The ICC was created with the plan of having carriers included in interstate commerce gave just and reasonable rates and services to the public. The “New Deal” plan that was initially made and worked upon by President Franklin D. Roosevelt made many administrative agencies that did not exist before. From then onwards, administrative agencies have become an influential contributor to the overall federal government structure. Considering how Congress and the president have given more legislative duties and more executive duties, administrative agencies have now also become in charge of many judicial functions.

Functions of Administrative Agencies
The functions of administrative agencies, judicial and legislative, are different from the rest. They are incomparable with the administrative agencies of the courts or the legislature. There are differences between them, but they are also alike. The legislature does not produce regulations; hence it does not have the outcome of law in theory. However, regulations can have a significant consequence in practice in discovering the result of cases. Such cases can also include regulatory activity.

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Powers of Administrative Agencies
Legislative powers are one of the powers that administrative agencies have, most of which come from the existing fact that Congress can only go so far in enacting legislation; or setting up guidelines for the agencies to enact. Dictated by language that is vague and cannot speak for every factual situation it applies. Factors that are in their nature political suggest that the agencies have much to clarify. They also suggest that they have the power to resolve enforcing legislation. For the aim of consideration, Securities laws do not allow insiders from gaining against the public interest. Still, it is up to the applicable administrative agency and the commission of Securities and Exchange to state the matters of public interest. A different administrative agency known as the Food and Drug Administration is responsible for ensuring that the food kept in-store is deemed unsafe. Ineffective drug products do not exist in the market. However, an administrative refinement that goes on and then an explanation is necessary for the agency to find out and answer what products are not safe or not effective. The Federal Communication Commission that is in charge of broadcasting must explain laws. The regulations issued by the treasury department explain the Internal Revenue Code. On the other hand, the Board of Governors offers explanations of how the Federal Reserve System provides regulations and how they are in charge of the actions of Federal Reserve banks. In1946, the Administrative Procedure Act was formed and over the years, it was reformed, making changes in the amendments that needed changes according to the changing times. It was planned to make administrative agencies responsible and accountable for their participation in rulemaking and other functions that were related to the government. Several procedural necessities were forced on them, as per the plan of making procedures among agencies more rigid.

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