Chapter 6

- Adminstrative agencies are also called regulatory agencies or bureaucracies

- Adminstrative law- Study of the powers, procedures, and the practices of these administrative agencies

- Adminstrative agencies handle tow areas of public concern: Economic regulatoin and public welfare

- Public welfare is broken down into two parts; Portection programs and entitlement programs.

- Entitlement program is a program that adminsiters benefits to which a person is entitled, such as Social Security

- Economic regulation covers the following areas:

- Adminstrative agencies approve certain types of business. (ie. Federal Aviation Administration certifies airlines nad airports for operation)

- Adminstrative agencies regulate securities and financial businesses. (ie. Federal Reserve Systerm regulates the banking industry)

- Some business activities are entirely subject to regulation (ie. Broadcast media, which are regulated by the Federal Communications Commission)

- Public welfare refers to programs that benefit the public at large

- Its jurisdiction is not limited to government aid to lower income people

- Another type of public welfare is an entitlement program in which applicants qualify for a program based on set criteria

- Several features allow regulatory agenceis to deal with problems more effectively than the legislature

- First, because an agency regualtes only a specific subject-matter area, it develops expertise in that area and adopts detailed regulations to regulate and monitor all the policies it establishes

- Second, a regulatory agency consists of a very well developed hierarchy. The legislature consistes of elected representatives and in turn has little continuity in its personnel

- Third, an agency has more flexibility than the legislature. If an industry wants Congress to pass a law, th eprocess is tedious and the results are tenuous . Congress has granted agencies the authority to change regulatoins in a quick and efficient manner.

- An agency which is created by congress, derives its authority from its enabling legislation.

- Four types of agencies can be created: Line agency, independent agency, governement agency, and quasi-official agency

- Line agencies- An agency under direct control of the president. Headed by one person, who is appointed by and serves at the pleasure of the president but who must be confirmed by the Senate. The president can release the person at any time, with or without good reason. Members of the presidents cabinet head the line agencies.

- Independent agencies- An agency that is freestanding from the president and Congress. Usually headed by a commission whose members are appointed by the president and confirmed by the Senate. The members are appointed for specific time periods. The chair of commisions runs the daily operations. The commission is a group usually ranging in size from three to fifteen people, the number determined by Congress. The president is required to be bipartisan, which means that both political parties must be represented.

- Government agencies- Created to administer a quasi-business venture. Quasi is a latin word that means as if, so the government agency administrates a program as if it were a private business. These agencies have three similar elements: (1) Each conducts a businesslike activity that (2) produces revenue to continue its own existence and, as a result, (3) needs greater flexibiltiy than usually is given to other types of agencies.

- Quasi-official agencies

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