Evidence Rules or Standards of Evidence in Agency Proceedings. Decisions Statutory Limitations Action by Subordinates Supporting Reasons Judicial Review In General Right of Review Form and Venue of Action Reviewable Acts Interim Relief Scope of Review 111 117 121 122 ¶ 124 131 132 134 137 139 141 152 Attorney General's Comments Examiners Appointment, Assignment and Tenure 161 Chart of Law Provisions 201 EXPLANATORY GUIDE Administrative Procedure Act INTRODUCTION Scope and Purpose.-The Administrative Procedure Act was approved June 11, 1946, as Public Law 404. Broadly stated, it establishes uniform rules of procedure for federal administrative agencies.1 [12] The Act, however, deals not only with administrative procedures as such, but also with the general requirements as to public information and judicial review. The measure is designed "to afford parties affected by administrative powers a means of knowing what their rights are and how they may be protected. administrators are provided with a simple course to follow in making administrative determinations. The jurisdiction of the courts is clearly stated." Senate Report. [13] The measure has been summarized as "an outline of minimum essential rights and procedures. Agencies may fill in details, so long as they publish them The public information section is basic, because it requires agencies to take the initiative in informing the public." House Report. [14] Provisions of the Law.-In substance, the law (1) provides that agencies must issue as rules certain basic information as to their organization and procedure (section 3); (2) states the essentials of the several forms of administrative proceedings, including rule making, adjudication and related matters (sections 4, 5 and 6); (3) states the limitations on administrative powers (section 9); (4) provides in more detail the requirements for administrative hearings and decisions in cases in which statutes require such hearings (sections 7 and 8); (5) sets forth a simplified statement of judicial review designed to afford a remedy for every legal wrong (section 10). (6) redefines the status and duties of examiners acting as presiding officers (sections 5, 7, 8 and 11). Rules for the admission and consideration of evidence appear in sections 7(c) and 10(e). See ¶ 111. [15] Section 1 contains the title of the Act. Section 2 contains the definitions. Section 11 provides for examiners to preside at hearings and make or participate in decisions. Section 12 provides the general rules of construction and effect. This section also contains the effective dates (¶ 547). [16] The principal provisions of the law are summarized and the relations of the various sections are illustrated in the chart appearing at ¶ 201. 1 The Senate Judiciary Committee was convinced that "at least in essentials, there should be some simple and standard plan of administrative procedure." [17] General Rules of Construction.—Section 12 of the Act (¶ 547) provides, among other things, that (1) Nothing in the Act shall be held (a) to diminish the constitutional rights of any person or (b) to limit or repeal additional requirements imposed by statute or otherwise recognized by law. (2) Except as otherwise required by law, all requirements or privileges relating to evidence or procedure shall apply equally to agencies and persons. (3) If any provision of the Act or the application thereof is held invalid, the remainder of the Act or other applications of such provision shall not be affected. (4) Every agency is granted all the authority necessary to comply with the requirements of the Act through the issuance of rules or otherwise. (5) No subsequent legislation shall be held to supersede or modify the provisions of the Act except to the extent that such legislation shall do so expressly. [¶ 8] The law "is designed to operate as a whole and . . its provisions are interrelated." It "is so drafted that its several sections and subordinate provisions are closely knit." Senate Report. Interpretation and Enforcement.-Generally, as to the interpretation and enforcement of the Act, the Senate Judiciary Committee's comments are in point: "Except in a few respects, this is not a measure conferring administrative powers but is one laying down definitions and stating limitations. These definitions and limitations must, to be sure, be interpreted and applied by agencies affected by them in the first instance. But the enforcement of the bill, by the independent judicial interpretation and application of its terms, is a function which is clearly conferred upon the courts in the final analysis. [¶ 10] "It will thus be the duty of reviewing courts to prevent avoidance of the requirements of the bill by any manner or form of indirection, and to determine the meaning of the words and phrases used. For example, in several provisions the expression 'good cause' is used. The cause so specified must be interpreted by the context of the provision in which it is found and the purpose of the entire section and bill. Cause found must be real and demonstrable. If the agency is proceeding upon a statutory hearing and record, the cause will appear there; otherwise it must be such that the agency may show the facts and considerations warranting the finding in any proceeding in which the finding is challenged. The same would be true in the case of findings other than of good cause, required in the bill. As has been said, these findings must in the first instance be made by the agency concerned but, in the final analysis, their propriety in law and on the facts must be sustainable upon inquiry by a reviewing court." [¶ 11] Relation to Other Statutes.-As previously noted, nothing in the Act shall be held "to limit or repeal additional requirements imposed by statute or otherwise recognized by law." Section 12 (¶ 547). Also, throughout the Act, there are numerous phrases requiring reference to the organic statutes establishing each agency, as in the provisions relating to (1) public records "save as otherwise required by statute” (¶ 513); (2) adjudication"in every case of adjudication required by statute" (¶ 519); (3) judicial review-"except so far as . . . statutes preclude judicial review" (¶ 540). There are other such provisions in sections 4(a) (¶ 515), 5(c) (¶ 522), 7(c) (¶ 532), 9(a) (¶ 538), 12 (¶ 547). [¶ 12] These numerous references in the Act to other statutes emphasize the necessity always of reading the provisions of the Administrative Procedure Act in conjunction with the specific agency statute. In other words, while reference to the new Act is necessary in most instances, it may not of itself give the complete answer in every case. The "complete" law will thus consist of the new law plus the agency statutes. Is the Law Applicable to All Agencies?—The law does not exempt any agency by name. It does, however, exclude certain types of agency functions or activities in specific cases. [22] The measure "is meant to be operative 'across the board' in accordance with its terms, or not at all. Where one agency has been able to demonstrate that it should be exempted, all like agencies have been exempted in general terms. Where one agency has shown that some particular operation should be exempted from any particular requirement, the same function in all agencies has been exempted. No agency has been favored by special treatment." House Report. "Agency" Defined.-Section 2(a) (503) defines the term "agency" as used in the Act to include each "authority" of the federal government other than legislative, judicial or territorial authorities. [[24] Except as to the requirements relating to public information (¶ 510), the Act specifically exempts (1) agencies composed of representatives of the parties to the disputes determined by them-as in the case of the National Railroad Adjustment Board or the Railroad Retirement Board-since the parties themselves are represented in the agencies; (2) courts martial and military commissions; (3) military or naval authority exercised in the field in time of war or in occupied territory; (4) functions which by law expire on the termination of present hostilities, within any fixed period thereafter, or before July 1, 1947; and (5) functions conferred by the Selective Training and Service Act of 1940, the Contract Settlement Act of 1944, and the Surplus Property Act of 1944 (¶ 503). [25] Exemptions in the Case of Certain Agency Functions.-As noted above, the Act deals with functions or operations. Thus, each section of the Act must be studied to determine whether an agency is subject to the requirements of a particular provision. For example, practically all agencies are within the scope of the provision requiring publication of agency data (510) as well as the section on rule making (¶ 514). On the other hand, there are basic exceptions in the provisions relating to adjudication (¶ 519) and judicial review (¶ 540). Limitations on agency activity as to imposition of sanctions, issuance of rules or orders and action on application for licenses, set out in section 9 (¶ 537-539), apply to all agencies covered by the Act. 2 In preparing the measure, the Senate Judiciary Committee dealt "with types of functions as such and in no case with administrative agencies by name. Thus certain war and defense functions are exempted, but not the War or Navy Departments in the performance of their other functions. Manifestly, it would be folly to assume to distinguish between 'good' agencies and others, and no such distinction is made in the bill. The legitimate needs of the Interstate Commerce Commission, for example, have been fully considered but it has not been placed in a favored position by exemption from the bill." 25 PUBLIC INFORMATION [31] Requirement as to Disclosure of Information. Of the various provisions of the law, the requirement as to publication of agency information in section 3 ( 510) is of the broadest application. Except where the matter may require secrecy in the public interest or may relate solely to the internal management of an agency, provision is made for disclosure of (1)_ rules—“every agency shall separately state and currently publish in the Federal Register" (a) descriptions of its central and field organization, delegations of final authority, designations of its places and methods of doing business with the public, (b) methods of rule making or adjudication, including the rules of practice relating thereto, and (c) such substantive rules and statements of general policy or interpretations as the agency may frame for guidance of the public, but not rules addressed to and served upon named parties as provided by law (¶ 511); make (2) opinions and orders-"every agency shall publish or available to public inspection" all final opinions or orders in the adjudication of cases, except those required for good cause to be held confidential and not cited as precedents, and all rules (512); (3) public records-unless otherwise required by statute, matters of official record shall be made available to persons properly and directly concerned except information held confidential for good cause found ( 513). [32] These provisions seem broad enough to require publication of the procedural rules for both formal and informal proceedings, including prehearing settlements. See sections 5(b) ( 521) and 6(a) (1525). Denials of access to public records and other agency data would apparently be subject to section 6(d) (¶ 528). See also ¶91-93. [¶ 33] Compliance with Unpublished Rules.-Keeping in mind the broad provisions as to the publication of "rules" noted above (31), the statutory requirement that no person shall "in any manner" be required to resort to unpublished organization or procedure protects the public from being required to pursue remedies that are not published as required. See section 3(a), last sentence (¶ 511). "This means, among other things, that the accepted rule respecting the exhaustion of administrative remedies would not apply where the agency has not published the required information respecting organization or procedure." Congressional Debates. RULE MAKING "Rule Making" versus "Adjudication" Functions.-The Act clearly distinguishes between the "rule making" or quasi-legislative functions and the "adjudication" or quasi-judicial functions of the various agencies. There are quite different procedures in each case. [142] Under the "rule making" provisions, the law provides that, with certain exceptions, agencies must publish notice and at least permit interested parties to submit their views in writing for agency consideration before issuing general regulations (¶ 514). No hearings are required unless otherwise required by law in a particular case. However, in the case of "adjudications," if required by statute, the mode of hearing and decision is prescribed (519). In either case, where hearings are required, reference must be made to section 7 (¶ 529) as to hearings, section 8 (¶ 534) as to decisions, 3 Under this provision "an agency is required to state all the stages, steps, courses and alternatives for each of the types of functions it is authorized to perform. The section forbids secrecy of rules_binding upon or applicable to the public, or of delegations of authority." House Report. |