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Administrative Law
University of Kentucky School of Law
Healy, Michael P.

Administrative Law
Professor Healy
Spring 2010
I.       Exam Technique: DO EVERY TIME
A.    Consider first Due Process issues
B.    Consider APA issues
                                          i.    1st – adjudicative/rulemaking
                                         ii.    2nd – formal vs. informal
C.    Always consider alternative sources (DPC, APA, Organic Statute, Agency Regulations, State APAs, etc.)
II.    Overview of Administrative Law
A.    Administrative Agencies in Our System of Government
                                          i.    Components of Admin law
1.     Procedural requirements for agency adjudication
2.     Procedural requirements for agency rulemaking
3.     Consideration of place of agencies in constitutional gov structure
4.     Judicial review of agency actions
B.    Overview of APA Structure
                                          i.    Every agency decision falls into one of two categories:
1.     Adjudication – agency process for formulation of an order
a.     Order – the whole or part of a final disposition of an agency in a matter other than rulemaking but including licensing
b.    It is judicial in nature
2.     Rulemaking – agency process for formulating, amending, or repealing a rule
a.     Rule – the whole or part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy
                                                                                          i.    It’s PROPSECTIVE
b.    It is legislative in nature
                                         ii.    Types of adjudication
1.     Formal – evidentiary hearings, on-the-record hearings, etc.
2.     Informal – everything else
                                        iii.    Types of rulemaking
1.     Formal
2.     Informal – notice and comment
                                        iv.    Scope Issues
1.     APA only applies to Fed agencies (created by Fed statutes), not state agencies
2.     APA is just a gap filler, thus if it conflicts with an organic statute, the organic statute controls
C.    Adjudication and Rulemaking
                                          i.    Distinguishing between these determines the type of law applicable to the organization
                                         ii.    Londoner v. Denver – ADJUDICATION
1.     If the legislature delegates the authority to determine liberty or property rights to a subordinate body (agency), then DP requires notice and a hearing
2.     Political delegation theory
a.     No DP rights against a legislature, only if it has been delegated
                                        iii.    Bi-Metallic v. State Board of Equalization – RULEMAKING
1.     When gov acting in a uniform and general way across the board in a rule based effect, there is no requirement for DP procedures
                                        iv.    Scope of DP rights under Londoner and Bi-Metallic
1.     The DP right of adjudication set forth in Londoner will only arise when the agency’s determination is particularized to the situation of a regulated party
            Nature of Decision
            Right to Due Process Clause hearing?
            Legislative Body, General Rule
            Legislative Body, individualized decision
            Subordinate body (Agency), general rule
            Subordinate body (Agency), individualized determinations
A.    Sources of Procedural Requirements for Adjudications
                                          i.    Constitution’s DP clause
                                         ii.    Statutory requirements
                                        iii.    Regulatory requirements
B.    Constitutional Right to a Hearing – DP Clause
                                          i.    Two considerations for cases involving PDP
1.     Is process due?
a.     Must be a deprivation of life, liberty, or property
b.    Must be a legit claim of entitlement to something
c.     Cannot be an unilateral expectation of entitlement
2.     If so, how much procedure is due?
                                         ii.    Right/privilege distinction – DP only applies to rights
1.     A benefit is not a protected entitlement if gov officials may grant or deny it within their discretion
                                        iii.    Determination of whether process is due
1.     Liberty
a.     Constitutional liberty
                                                                                          i.    Freedom from bodily restraint and freedom from unwarranted use of force by gov officials
                                                                                         ii.    These liberty interests exist no matter what and DP must be provided if a person is deprived of these
b.    Other liberties
                                                                                          i.    Right to contract
                                                                                         ii.    Right to engage in any common occupations of life
                                                                                        iii.    Right to acquire useful knowledge
                                                                                        iv.    Right to marry
                                                                                         v.    Right to establish a home and bring up children
                                                                                        vi.    Right to worship a god according to your own conscious
                                                                                       vii.    Right to generally enjoy those privileges long recognized
c.     Stigma alone is not enough; must be stigma plus something relating to the inability to act as a free person is ordinarily able to act
2.     Property
a.     Legitimate claim of entitlement
                                                                                          i.    More than a unilateral expectation
b.    Positive law test
                                                                                          i.    Must look to underlying law (state law) to determine whether the claimant has a legitimate claim of entitlement to that which was taken
                                                                                         ii.    If an external source such as state law creates a claim of entitlement to a gov interest (or other property), then a property interest exists
                                                                                        iii.    Entitlements are created by substantive, not procedural law
1.     The state law must provide for substantive rights, not just procedural protections
c.     Implicit entitlements
                                                                                          i.    When there isn’t explicit entitlement, less formal assurances or state practices may create an entitlement, and therefore a property interest
                                                                                         ii.    Ex. Perry v. Sindermann – teacher at a junior college had an entitlement to continued employment even though there was no explicit entitlement to such
1.     Court relied upon provisions in faculty handbook and other assurances to determine that employment would be continued as long as performance was satisfactory
d.    Examples of what IS property
                                                                                          i.    Welfare benefits to those already recipients (Goldberg v. Kelly – p. 38)
                                                                                         ii.    Statutory entitlement of benefits of any sort
                                                                                        iii.    Education (Goss v. Lopez – p. 100)
e.     Examples of what IS NOT property
                                                                                          i.    Government employment (Bailey v. Richardson – p. 27)
                                                                                         ii.    Applicants for welfare benefits (Goldberg v. Kelly – p.38)
                                        iv.    Level of procedure due
1.     Due process basics (once it’s determined process is due)
a.     Advance notice
b.    Oral hearing
c.     Right to assistance – either attorney or some other trained aide
d.    Right to confront the evidence
e.     Right to a neutral  decision-maker
**Doesn’t matter how much of protected interest is deprived of – as long as it’s not de minimis the second level of analysis is triggered
2.     Matthews Flexible Balance Test – balance these factors
a.     Private interest of the affected party
                                                                                          i.    Essentiality to livelihood – important fact

                                     i.    Hearsay is admissible
f.     Requirements for formal adjudication
                                                                                          i.    Impartial and unbiased presiding officer 556 (d)
                                                                                         ii.    Notice and opportunity to participate in hearing 554 (c)
                                                                                        iii.    Right to appear with counsel 555(b)
                                                                                        iv.    Right to present oral and written evidence 556(c)
                                                                                         v.    Right to cross-examine
                                                                                        vi.    Right to submit proposed findings, conclusions, exceptions
                                                                                       vii.    Compilation of an exclusive record on which agency must base decision 556(e) – decision on the record
                                                                                      viii.    Limitations on ex parte communication and combination of prosecutorial and adjudicative functions 554(d)
                                                                                        ix.    FRE don’t govern admissibility of evidence
1.     Hearsay is admissible
g.    Interrelation of sections
                                                                                          i.    557’s applicability depends on 556, which depends on 553 or 554
                                                                                         ii.    553 – applies to rulemaking
                                                                                        iii.    554- applies to adjudication
1.     Applies in every case that is required by statute to be determined on the record after an opportunity for an agency hearing
2.     If this applies, so does 557 and 556
2.     Informal Adjudications
a.     Default, everything specifically not designated as formal
b.    Requirements
                                                                                          i.    Minimal
                                                                                         ii.    Prompt notice must be given of denial of written petition/application with a brief statement grounds (556(e))
                                                                                        iii.    Person compelled to appear has right to counsel (556(b))          
1.     Exception to brief statement of grounds requirement:
a.     If action is affirming a prior denial OR
b.    Denial is self-explanatory
                                        iii.    APA formal adjudication trigger determines applicable category
1.     If organic/enabling act provides for hearing on the record, then formal adjudication
a.     If not, then it is informal adjudication
2.     If standard for judicial review of agency adjudication is substantial evidence standard – that standard for review is based on an on the record hearing
3.     General legislative history
4.     There is not a magic words requirement that the text include the phrase on the record
5.     Source of law of procedures required for adjudications
                                        iv.    Organic/enabling Act
1.     If it provides for a hearing on the record, then it’s calling for formal adjudication
                                         v.    Triggering