MGMT 211 Lecture 11 Outline of Current Lecture Agencies Current Lecture Started in the late 1800 s as a direct result of big business becoming powerful Too much wealth means too much power Businesses want to make money more so than caring for their consumer Products were starting to hurt people Federal government was the only entity that could go against them Started slowly and built steam it took a lot of effort and power to reign in these powerful businesses Silent partner they tell you what to do Interstate commerce is vital if you re in business you re involved in interstate commerce There is a lot of regulation now to keep businesses in check 3 Eras 1 Historical Era 1887 going after the railroads a Some of the richest most powerful b They were getting together and forming trusts fancy name for a monopoly c They all got together and decided what prices to charge to ship goods on the railroad i It was the only way to ship and everyone was at their mercy d Interstate Commerce Commission railroads were obviously involved because they were easily involved in interstate commerce i Leads into anti trust law e A lot of agencies on the federal side f Cabinet level positions secretary of state secretary of defense homeland security 2 Up until Great Depression New Deal Era FDR trying to pull us out of the depression and get us ready for World War 2 a A lot of the policies implemented are gone b Shows that they are not set in stone 3 Socially Conscious Era 60s and 70s a A lot of agencies were created in this era 4 Modern Era a They continue to make new regulatory agencies Industry Specific Regulatory Agencies mainly used in the early part of the 1900 s they go after one particular industry ICC for railroads SEC regulate stocks and bonds FCC regulate communication industry radio and tv regulatory capture putting the people who need to be regulated in charge It happens because we don t know what s going on apathy Example In the presidential election of 1892 the railroads could give a lot of money to a particular candidate the candidate would win and the railroad companies would use that to get what they want due to apathy people let that go on without stopping it Economy wide regulatory agencies in FDR and Historical Era Some created in the New Deal Era FTC prevent unfair or deceptive advertising They go after everyone everyone who s polluting for example FDR elected for change and he delivered Regulatory agencies for all kind of things Expanded the size of government Managed to get 4 terms which is incredible Legislature swung in democrats firmly in control of congress Supreme Court thought FDR was an idiot and butted heads with him all the time Schlecter Poultry v US Held that what FDR was doing with the agencies was unconstitutional FDR threatened to add more justices who aligned with him 1944 Yakus v US valid By 1944 the Supreme Court was firmly in his power Agencies who controls Ultimately Congress controls all of them controls funding creation Day to day basis depends on the type of agencies 1 Executive Dependent Cabinet level directly to the president a The president can fire replace you b Administrations departments etc c FEMA example i One person in charge of these departments ii George Bush pressured the man in charge of FEMA to resign after Hurricane Katrina because he wasn t doing his job 2 Independent executive agencies still dependent but not under a cabinet level position a NASA put it in under this because they didn t want to stir up trouble b EPA as well c President can fire people at this level as well 3 Independent regulatory agencies regulate business a Appointed by but can t be removed by the president b Multi headed boards in commission made of 5 members with this you get a term of years not necessarily aligning with the president s term c They don t have to listen to the president or anyone else d Long term Congress controls them and the president can replace the heads 4 Government corporations federal bureaucracy has become so important that it is being referred to as the 4th branch a You don t elect these people and can t get rid of them Powers of the Agencies They have an executive department that is an extension of the president They can also have independent departments Congress delegates the power o President may create them but Congress regulates them o Nixon Environmental Protection Agency All agencies must follow the Administrative Procedures Act Truman o They do not all operate and look the same o Rule Book with exceptions of what you can and can t do Legislative judicial and enforcement powers o Legislative they pass laws called administrative law 5th type of law o 3 types of law they can pass Procedural substantive regulatory Can pass regulations that explain the substantive law more explanatory Substantive equal weight to an act of congress You can t tell OSHA or EPA to stick it they are very powerful How to create them Administrative Procedures Act If you pass a substantive rule it must be done formally the others can be done informally Formal substantive rule promulgate and publish in Federal Register they have to list hearing dates and places where you can come in to object in an evidentiary style experts witnesses Informal whoever the head is promulgates a rule and publish it in the Federal Register businesses hire someone to read it gives you 30 days to object to it nothing happens in 30 days with our government so businesses are screwed o Enforcement they have their own police division that other branches do not have Brown v Board when segregation was ended the South fought it with everything they had the president had federal troops escort students into school Congress passed the Civil Rights Act of 1964 and enforced it They can make you suffer in court If someone is hurt at your workplace you have to self report You have to monitor pollution that you release and must turn yourself in if you don t follow those regulations This is civil 5th does not apply Inspection team they have to have an administrative warrant but that s it If you just let them in to inspect OSHA it will be easier In case of emergencies a warrant is not needed They can fly over and take a satellite photo open to the public If you don t cooperate you get hit with a subpoena and take you to jail until you cooperate Limits Donovan v Dewey Case Enforcement powers used Test and inspection test your waters or EPA comes in and tests your waters for pollution o CPSC require you test