THE INDEPENDENT REGULATORY AGENCIES
- also known as independent regulatory commissions
- created by Congress to regulate important parts of the economy,
- make rules for large industries and businesses that affect the interests of the public.
- regulatory agencies are watchdogs that need to operate independently, they are not part of a department.
Small commissions govern the regulatory agencies:
- 5-10 members appointed by the president and confirmed by the Senate
- Commissioners are somewhat more "independent" than are the cabinet secretaries
- cannot be removed by the president during their terms of office
- Commissioners serve rather long terms (5-14 years)
- Terms of the commissioners are staggered
- have quasi-legislative powers: they have the authority to make rules/regulations that have the force of law.
- have quasi-judicial powers: they can settle disputes in their fields (such as the FCC fining tv stations).
The regulatory agencies maintain a close relationship with the industries they regulate
- Agency employees are recruited from the regulated industry & often return to the industry
- Industries are often consulted by agencies
- Agencies ask for Congressional funding in part with the industry suggestions
THE GOVERNMENT CORPORATIONS
Government corporations are a blend of private corporations and government agency. They were created to allow more freedom and flexibility than exists in regular government agencies. They have more control over their budgets, and often have the right to decide how to use their own earnings. Since the government still ultimately controls them, they do not operate like true private corporations.
INDEPENDENT EXECUTIVE AGENCIES
Other agencies that do not fall into the first three categories are called independent executive agencies. Independent agencies closely resemble Cabinet departments, but they are smaller and less complex. Generally, they have narrower areas of responsibility than do cabinet departments. Most of these agencies are subject to presidential control and are independent only in the sense that they are not part of a department. Their main function is not to regulate, but to fulfill a myriad of other administrative responsibilities.
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