Name_____________________________
Period______
Date__________
Mr. Mitchell
Independent Agencies
I.
II.
III.
(Chapter 15, Section 4)
Why Independent Agencies?
A. Independent agencies are located outside the control of executive
departments.
B. There are several reasons an agency exists outside of department control:
1.
They do not fit well within any existing department. (Ex: General
Services Administration or Office of Personnel Management)
2. To protect them from the influence of partisan and pressure politics.
(Ex: Social Security Administration or the Federal Election Commission)
3. Due to the peculiar and sensitive nature of their functions. (Ex:
regulatory commissions)
C. Independent agencies can be divided into three main groups:
1.
Independent executive agencies.
2. Independent regulatory commissions.
3. Government corporations.
The Independent Executive Agencies:
A. Organized similarly to Cabinet departments: headed by a single administrator
with subunits operating on a regional basis.
B. Size can range from large (ex: NASA and the EPA) to small (ex: Peace Corps
and the Civil Rights Commission)
Independent Regulatory Commissions:
A. Largely beyond the reach of presidential directions and control.
B. Structured for Independence:
1.
They are headed by a board or commission members that serve longer
terms so sitting Presidents are unlikely to gain much control over them.
2. No more than a bare majority of members may belong to the same
political party to avoid partisan actions.
3. IRCs are unique because they are structured to be executive bodies with
quasi-legislative and quasi-judicial bodies.
a. Quasi-legislative example: SEC issuing rules and regulations for stocks
and bonds.
b. Quasi-judicial example: SEC agents investigating a fraud case and
ruling guilty or innocent.
c. Congress created IRCs with the powers of all three branches to save
time and provide expert attention to certain issues.
d. Downside is that IRCs are an exception to the principle of separation
of powers.
Name_____________________________
Period______
IV.
Date__________
Mr. Mitchell
C. Rethinking Regulation:
1.
Some argue that IRCs should belong to executive department agencies
for fear that some may be biased towards certain interest groups.
2. Others worry that IRCs may stifle legitimate business competition or
unnecessarily increase consumer costs.
The Government Corporations:
A. Government corporations are subject to the President’s control, but are
designed to carry out certain business-like activities. (Ex: Bank of the U.S.
and U.S. Postal Service)
B. Government vs. Private Corporations:
1.
Government corporations are structured similarly to those in the private
sector with a board of directors and a general manager.
2. They are different than private corporations because Congress decides
the purpose for which the agency exists, the President hires top officials
and public funds finance the agency.
3. Many claim that government corporations are beneficial because they
have greater flexibility to experiment with business models to become
more efficient.
C. Degrees of Independence:
1.
Some government corporations have considerable independence (Ex:
Tennessee Valley Authority)
2. Others have very little independence because they are attached to an
executive department. (Ex: Commodity Credit Corporation)