{"title":"Cost-Benefit Analysis and Arbitrariness Review","authors":"C. Sunstein","doi":"10.2139/SSRN.2752068","DOIUrl":"https://doi.org/10.2139/SSRN.2752068","url":null,"abstract":"When an agency fails to engage in quantitative cost-benefit analysis, has it acted arbitrarily and hence in violation of the Administrative Procedure Act? At first glance, the question answers itself: Congress sometimes requires that form of analysis, but if it has not done so, then agencies have discretion to proceed as they see fit. But as recent decisions suggest, the underlying issues are far more complicated than they seem. The central reason is that for all its limitations, cost-benefit analysis is the best available method for testing whether regulations increase social welfare. Whenever a statute authorizes an agency to consider costs and benefits, its failure to quantify them, and to weigh them against each other, requires a non-arbitrary justification. Potential justifications include the technical difficulty of quantifying costs and benefits; the relevance of values such as equity, dignity, and fair distribution; and the existence of welfare effects that are not captured by monetized costs and benefits. These justifications will often be sufficient. But in some cases, they are not, and agencies should be found to have acted arbitrarily in failing to quantify costs and benefits and to show that the benefits justify the costs.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"478 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134140398","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Short Sales and the Antideficiency Rules","authors":"R. Bernhardt","doi":"10.2139/SSRN.2895802","DOIUrl":"https://doi.org/10.2139/SSRN.2895802","url":null,"abstract":"Whether short sales are subject to California's antideficiency rules.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"199 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124452407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Brief of Amicus Curiae Professor Kristin E. Hickman in Support of Petitioners, Florida Bankers Ass'n v. US Dep't of the Treasury, No. 15-969 (United States Supreme Court)","authors":"Kristin E. Hickman","doi":"10.2139/SSRN.2739989","DOIUrl":"https://doi.org/10.2139/SSRN.2739989","url":null,"abstract":"This amicus brief was filed before the United States Supreme Court, supporting the petition for certiorari in Florida Bankers Association v. United States Department of the Treasury, No. 15-969. The case concerns whether the Anti-Injunction Act, 26 U.S.C. s. 7421(a), precludes pre-enforcement judicial review of challenges against the validity of Treasury regulations under the Administrative Procedure Act. The brief explains the context and implications of the resolution of that issue for federal tax system administration and also maintains that the D.C. Circuit disregarded clear evidence of congressional intent in favor of a narrow interpretation of the Anti-Injunction Act that would allow judicial review of pre-enforcement APA claims against Treasury regulations.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130455075","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Statistics and the Paperwork Reduction Act: An FTC Case Study","authors":"F. Scheuren","doi":"10.2139/ssrn.2721855","DOIUrl":"https://doi.org/10.2139/ssrn.2721855","url":null,"abstract":"The Paperwork Reduction Act (PRA) requires that federal agencies obtain OMB approval before requesting most types of information from the public. Among other requirements, the PRA requires that agencies desiring to conduct surveys provide OMB with a variety of information about the study design to ensure that results will be high quality, objective, and methodologically consistent across agencies.Despite the large number of surveys conducted by federal agencies each year, most of these are little more than pilot studies on which the sponsoring agency cannot base regulatory, legislative, or policy decisions. A good example of this is the ongoing study by the Federal Trade Commission (FTC) of patent assertion entities (PAE). The FTC study may well contribute new data related to PAE activity, but, like other exploratory studies, there should be important limits on the use of the FTC’s findings and on the conclusions that may be drawn.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124172834","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Assessing Court Deference to the Comptroller of the Currency's Regulations: Incidental Powers of Banks and Blackfeet National Bank","authors":"Assani Jr Amuzati","doi":"10.2139/SSRN.2491243","DOIUrl":"https://doi.org/10.2139/SSRN.2491243","url":null,"abstract":"In this article, I analyze the question of incidental powers of national banks, raised in Blackfeet National Bank v. Nelson, but not fully addressed: whether banking powers are limited to those enumerated in Paragraph 24 Seven of the National Bank Act. If not, whether courts usually defer to the Comptroller of the Currency's expansion of these powers. The Eleventh Circuit answered the question in the negative. The court's opinion exposes the deeply uncertain interpretation of incidental powers of banks. The timid but constant departure from the Chevron doctrine has allowed courts to stop the rapid expansion of banking powers by the Comptroller of the Currency. The result would be that the standard for judicial review of the Comptroller of the Currency's regulations is no longer under Chevron rule, but under the defunct Skidmore rule.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125799531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Naïve Cronyism and Neutral Competence: Patronage, Performance, and Policy Agreement in Executive Appointments","authors":"Gary E. Hollibaugh","doi":"10.1093/JOPART/MUU016","DOIUrl":"https://doi.org/10.1093/JOPART/MUU016","url":null,"abstract":"Much of the bureaucratic literature suggests that, when staffing the bureaucracy, executives want agents who are both responsive to their political needs and possess the competence needed to fulfill their directives. However, institutional barriers — such as the requirement for legislative confirmation — exist that may make pursuing a strategy of responsive competence difficult, if not impossible. Here, I examine a model of bureaucratic appointments that allows for informationally imperfect agencies. I show that when legislative assent is required, tradeoffs between ideology and either patronage or agency performance — or both — are often required to ensure legislative confirmation. The same dynamics are not present for unilateral appointments. Finally, using a dataset that incorporates the ideologies of federal program managers, the performance of federal programs, and whether program managers were patronage appointees, I conduct a series of empirical tests that support the model’s predictions.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"94 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116941281","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Buy America Requirements for Federally Funded Rail Projects","authors":"T. Wyatt","doi":"10.17226/22209","DOIUrl":"https://doi.org/10.17226/22209","url":null,"abstract":"Federal grants for passenger and freight rail development typically have domestic preference conditions or \"Buy America\" requirements. Most recently, in 2008, Congress enacted a Buy America provision applicable to grants for the High-Speed Intercity Passenger Rail program administered by the Federal Railroad Administration. However, since 1978, passenger and freight rail development funds administered by Amtrak, the Federal Transit Administration, and even the Federal Highway Administration have also been conditioned on Buy America compliance. Although the various transportation grant Buy America provisions often appear similar on their face, there are significant differences in the way they are interpreted and administered by different Federal grant-making agencies. This has led to confusion and concern in the railroad industry, among manufacturers of rail cars and locomotives, railroad construction contractors, and rail development grant recipients (e.g., State Departments of Transportation) who procure rail construction and manufacturing services. The purpose of this paper is to somewhat alleviate the confusion and frustration in the railroad industry by providing guidelines for complying with the various Buy America provisions applicable to rail development, compiled into a single resource. The paper addresses the similarities and, most importantly, the differences among the various Buy America provisions. The paper also details the legislative and administrative history (and, in some cases, the judicial history) that helps explain most of the differences in the way the various Buy America provisions are administered.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"45 19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127158340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Is Regulation to Blame for the Decline in American Entrepreneurship?","authors":"Nathan Goldschlag, A. Tabarrok","doi":"10.2139/ssrn.2559803","DOIUrl":"https://doi.org/10.2139/ssrn.2559803","url":null,"abstract":"Mounting evidence suggests that economic dynamism and entrepreneurial activity are declining in the United States. Over the past 30 years, the annual number of new business startups and the pace of job reallocation have declined significantly. We ask whether this decline in dynamism can be explained by federal regulation. We combine measures of dynamism with RegData, a novel dataset leveraging the text of the Code of Federal Regulations to create annual measures of the total quantity of regulation by industry. We find that rising federal regulation cannot explain secular trends in economic dynamism.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122387510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Death of Tax Court Exceptionalism","authors":"Stephanie R. Hoffer, Christopher J. Walker","doi":"10.2139/SSRN.2393412","DOIUrl":"https://doi.org/10.2139/SSRN.2393412","url":null,"abstract":"Tax exceptionalism — the view that tax law does not have to play by the administrative law rules that govern the rest of the regulatory state — has come under attack in recent years. In 2011, the Supreme Court rejected such exceptionalism by holding that judicial review of the Treasury Department’s interpretations of the tax code is subject to the same Chevron deference regime that applies throughout the administrative state. The D.C. Circuit followed suit by rejecting the IRS’s position that its notices are not subject to judicial review under the Administrative Procedure Act (APA). This Article calls for the demise of another instance of tax exceptionalism: the United States Tax Court’s longstanding view that it is not governed by the APA.In addition to presenting the legal case against Tax Court exceptionalism, the Article explores administrative law and tax policy considerations that favor the Tax Court following traditional administrative law, including consistent application of the law, efficient allocation of resources, horizontal and vertical equity, comparative agency expertise, and a proper separation of powers. Moreover, by following administrative law principles that may be more deferential to the IRS in a particular case, the Tax Court can establish a richer dialogue with the IRS to improve agency procedures and decision-making — thus advancing tax policy’s interest in protecting less sophisticated taxpayers while increasing economic efficiency. With a growing circuit conflict as to whether the Tax Court is bound by the APA, the Tax Court should reverse course now before the Supreme Court intervenes to declare the death of tax exceptionalism in yet another area of tax law.","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"111 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-11-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133815267","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"[Dis-]Informing the People's Discretion: Judicial Deference Under the National Security Exemption of the Freedom of Information Act","authors":"Susan Nevelow Mart, Tom Ginsburg","doi":"10.31228/osf.io/njpmd","DOIUrl":"https://doi.org/10.31228/osf.io/njpmd","url":null,"abstract":"As noted by President Obama’s recent Review Group on Intelligence and Communications Technologies, pervasive state surveillance has never been more feasible. There has been an inexorable rise in the size and reach of the national security bureaucracy since it was created after World War II, as we have gone through the Cold War and the War on Terror. No one doubts that our national security bureaucracies need to gain intelligence and keep some of it secret. But the consensus of decades of experts, both insiders and outsiders, is that there is rampant overclassification by government agencies. From its inception in 1966, the Freedom of Information Act has presumed disclosure. And from its inception, Congress intended the federal courts to act as a brake on unfettered agency discretion regarding classification. But courts have not played a strong role in this regard. This article examines the interplay of overclassification, excessive judicial deference, and illusory agency expertise in the context of the national security exemption to the Freedom of Information Act.The national security exemption allows documents to be withheld that are “specifically authorized under criteria established by an Executive Order to be kept secret in the interest of national defense or foreign policy” and that “are in fact properly classified pursuant to such Executive Order.” The history of national security classification and the passage of the FOIA illuminate the tension between legislative demands for transparency and the growth of the national security state with its agency culture of secrecy. That tension has generally been resolved by the courts in favor of secrecy, despite agreement that there is rampant overclassification and pseudo-classification (labeling documents as sensitive but unclassified). This deference in turn leads agencies routinely deny FOIA requests that should in fact be granted. Without adequate court oversight, there is no agency incentive to comply with the FOIA’s presumption of disclosure.We argue that courts have been systematically ignoring their clear legislative mandate. Although the government is entitled to substantial deference, the role of the judiciary is not to rubber stamp claims of national security, but to undertake de novo and in camera review of government claims that the information requested was both required to be kept secret and properly classified. Congress amended the FOIA in 1974 to make this requirement explicit, overruling a judicial attempt to defer completely to government claims that national security classifications are proper.There are many reasons that courts are reluctant to get involved in determining the validity of exemption claims based on national security. Overestimation of risk may be one reason, as is fear of the consequences of error. We also discuss a “secrecy heuristic” whereby people attribute greater accuracy to “secret” documents. Notwithstanding these rationales, courts have, in other contexts, ","PeriodicalId":233762,"journal":{"name":"U.S. Administrative Law eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-11-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116819604","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}