PUAF 698Z Introduction to the Regulatory Process

Spring 2007

Van Munching Hall Room 1101

Instructor – Professor Catherine I. Riley – senriley@msn.com (410-371-0011)

Office Hours – By appointment

 

I.   Course Introduction – Welcome to PUAF 698 Z -- an introduction to the Regulatory Process.  This course is designed to introduce students who are interested in government administration to the fundamentals of the regulatory and rulemaking process and of Administrative Law.  This includes the Administrative Procedures Act and the agency enforcement process.  Our goal is to provide you with background and practical knowledge about the regulatory process with a primary focus on the federal agencies but with some discussion about state processes and the State of Maryland particularly.  This course focuses on the so-called “the fourth branch of government” and explains how the legislative branch of government has successfully delegated legislative power to a non-elected bureaucracy. Understanding of the legal foundations and the dynamic regulatory process that continues to unfold is enhanced.  Such knowledge should assist students in becoming more skilled observers of and participants in governmental agency processes.

 

II.     Course Administration – This is a Graduate level course.  You are expected to read all assigned readings prior to class and be prepared to discuss them with your instructor and members of the class.  Please note the readings are focused on the early to middle parts of the course in order to allow you time to work on your paper.  Should you have any questions regarding class time, location or weather issues, please contact Professor Riley.

 

III.       Course Requirements -   Final grades will be computed as follows:

                                    Mid-term exam -         25%

                                    Course Paper -             40%

                                    Class Participation -    35%

                                                                       100%

 

The course paper requires researching and writing a 20-24 page (double spaced, 12 point type) analytical paper about the adoption of a regulation – either state or federal.  You will analyze the process by which the regulation was ultimately adopted.  Initially, you must identify the legislative or legal basis for the regulation and then discuss the players, controversies, tradeoffs, and how and why the outcome was finally achieved.  A brief written description of your paper proposal is due at the start of class on March 7 and the paper itself is due at the beginning of our last class on May 9.  Your instructor will be pleased to work with you to select a topic and will comment on a working draft prior to your presentation.  Topic approval will be based on appropriateness for this course. 

 

IV.              Weekly Topics, Assignments

 

January 24        Introduction to the Regulatory Process  – Overview of Administrative law and rulemaking.  Who does it and how, including the judicatory and agency rulemaking processes. 

                        History and development, kinds of rulemaking, goals, alternatives to rulemaking. How responsibility shifts to agencies, commissions and others through adjudication and rulemaking,

 

Kinds of rulemaking with general applicability, statutory and interpretive

                       

Legal Case Review – Secretary Brock and OSHA

 

January 31        Substance and History of administrative law and rulemaking/regulatory                           process - Traces regulatory process to G. Washington, Rhode Island,                              Railroads and utilities, Interstate Commerce Commission

                       

            Legal Case Review - Lochner 1905 due process issues,

                       

Federal Trade   Commission, Federal Power Act

                        Brownlow “headless fourth branch of government”,                                                       Attorney General’s Commission on Administrative Procedures,

                        Code of Federal Regulations initiated in 1938,

                        Administrative Procedures Act of 1946, and regulatory models

 

                        Kerwin – Chap. 1 pages 1-38 and Chap. 7 pages 259-285

                        Gellhorn and Byse – Chap. 1 pages 1-34

                        Pierce – Chap. 1 pages 1-87

 

February 7       Legal issues and Conflicts - Early court decisions regarding delegation of powers and Constitutional questions relative to Article I and Amendments 4, 5, 14.

                        Primary jurisdiction and appropriateness of judicial review

                        Standing, scope of review, standards, importance of information

                        Administrative agency deference: facts, laws, mixed questions

                        Compact between rulemakers and courts

                        New Deal, National Industrial Recovery Act                 .

 

                        Due process/interpretation issues:

Legal Case Review - Carter v. Carter Coal Co., 

                       

                        Gellhorn and Byse- Chapter 2 pages  35-83, 101-133,

                        Gellhorn - Chapter 1 pages 8-34, Chapter 6 pages 191-233

                        Pierce - Chapter 14 pages 324-331

 

February 14     Basics of regulation – identified through review of some critical federal court case decisions:

                                    Legal Case Reviews:     Overton Park

                                                                        State Farm

                                                                        Chevron

                                                                        MCI v. ATT

                        Kerwin – Chap. 6 pages 238-258

                        Gellhorn and Byse - Chap. 8 page 902-1068

                        Gellhorn - Chap 7 pages 234-281

                         

February 21     Rulemaking Process and Core Elements -

                        Review of Federal and Maryland Administrative Procedures Acts,

                        Formal and informal rulemaking,

                        1970s - decade of rulemaking - policy versus economics,

                        Rise of negotiated settlements, Carter and Reagen approaches,

                        Decline of command and control as regulatory approach.

 

                        Kerwin – Chap. 2-3 pages 39-114

                        Gellhorn and Byse – Chap. 5 pages 627-638

                        Gellhorn – Chap. 4 pages 121-152, Chap. 5 pages 156-189. Chap. 9                          pages 296-341, Appendix  APA pages 399- 432

 

February 28     The Rulemaking  Process – Part II

                        Kerwin Chart 2-1 Steps 1 through 10 of the process. 

                        Three types of records

 

Legal Case Review -Yankee Vermont Nuclear Power Corp. v. Natural Resources Defense Council, Inc.

 

                        Kerwin - Chapter 2 Table 2.1

                        Gellhorn and Byse - Chapter 5 pages 484-556

 

March 7           Regulatory Process and Management Oversight - process discussion 

                        Presidential efforts to oversee,

                        Use of Office of Management and Budget, appointments, Executive                               Orders, cost-benefit analysis and other weapons,

                        When is an independent agency truly independent?

 

                        Guest – Commissioner from a Federal Regulatory Oversight Panel

 

                        Kerwin - Chapters 4 pages 118-157, Chap. 5 pages 158-211,

                        Gellhorn and Byse - Chap. 2 pages 140 -170,  Chap. 5 pages 638-705,

                        Gellhorn - Chapter 2 pages 35-70

 

March 14         Mid-term - one hour

 

                        Regulatory Process and Management Oversight -

                        Congressional efforts to oversee, use of legislative veto, Freedom of                                          Information, Sunshine Acts, budget language,

                        Chadda decision

                        Effects of cross-cutting laws on regulatory process, 

                        Effects of Republican Contract with America 1995,  present status.

                        Kerwin - Chapter 6 - pages 212-238

                        Gellhorn and Byse - Chapter 2 pages 176-208

 

March 21         Spring Break

 

March 28         Regulatory Process and Judicial Oversight -

                        Key issues: standing, scope of review, standards, effects;

                        Administrative agency deference,

                        Broad interpretation v. narrow

                        The Rehnquist Court – 10th Amendment decisions

 

                        Gellhorn and Byse – selected cases

                        Gellhorn - Chapter 3 pages 71-120, Chapter 10 pages 342-393

 

April     4          Rulemaking from an Agency Perspective - Quasi-judicial v. rulemaking,                                     1999 Electric Restructuring Act required Md. Public Service

Commission to act, set goals, create processes, actions, court decisions on affiliate transactions and cross-subsidization                            

                        Maryland PSC Order issued June 2000

                        Circuit Court upholds

                        Maryland Court of Appeals overturns on need to issue regulations

 

Legal Case Review - Delmarva Power and Light Company d/b/a Connectiv Power Delivery, et. al. v. Public Service Commission of Maryland (2002).                  

 

April 11            Ratemaking - Process by which agency establishes economic prescription                                  for companies, usually natural monopoly,

                        Sets rates companies can charge customers,

                        Resolves issues of discrimination, fairness, quality, zone of reasonableness                      Constitutional issues regarding  5th and 14th amendments.                                         

            Legal Case Review - Bluefield Waterworks v. PSC, 1923.

 

                        Pierce – Chap. 4 pages 88-91, Chap. 5 pages 93-157, Chap. 6 pages                                      158-177, and Chap. 10 pages 244-266

                        NRRI - Rate manual (handout)

 

April 18            Transition in Administrative and Regulatory Practices,

                        Deregulation,

                        Alternative Regulation 

                        Evolving technology issues

                        Efforts to respond by sometimes exceeding legislative authority             

                       

Legal Case Review -American Library Association, et. al v. Federal Communications Commission

Discussion of other countries regulatory approaches –

 

                        Guest – NARUC Commissioner and international advisor

 

                        Gellhorn and Byse - Chapter 8 page 904-907

                        Pierce  - Chapter 12 pages 277-288 and Chapter 15 pages 332-370

 

April 25            Discussion of issues pending, including review of FCC digest, FERC NOPRs, and EPA pending actions

 

May 2              Paper Presentations

 

May 9              Paper Presentations

 

 

Publications:

 

Cornelius M. Kerwin, Rulemaking, CQ Press, Washington DC, 3rd edition, 2003

 

Ernest Gellhorn and Ronald M. Levin, Administrative Law and Process, “In a Nutshell”,            West Group, St. Paul Minnesota, 4th edition, 1997

 

Richard J. Pierce, Jr and Ernest Gellhorn, Regulated Industries, “In a Nutshell”, West    Publishing Co., 3rd edition, 1994

 

Gellhorn and Byse’s Adminstrative Law, Cases and Comments, Revised 10th edition,    editors, Peter Strauss, Todd D. Rakoff, Cynthia R. Farina, Foundation Press, 2003

 

NRRI - Basics of Ratemaking