There are three main sources of law: common law, statutory law, and administrative law. Common law is based on previous court decisions, while most new law is statutory law passed by legislatures. Administrative law is made up of regulations from government agencies. New laws can be created when a bill is introduced in Congress, debated, and passed by both the House and Senate and signed by the president. Government agencies also create administrative rules and regulations and hold hearings to enforce compliance. Their power is balanced by statutory limits and oversight from the courts and elected officials.

1. Common Law, Statutory Law, and Administrative Law CHAPTER 3

3. Three Sources of Law Common Law Statutory Law Administrative Law

5. Statutory Law Most new law is statutory , that is, it is legislation passed by either a state legislature or the Congress of the United States. Citizens who vote have some control over statutory law. We elect the state congressional representatives and the United States Senators and Representatives.

6. How New Laws are Made Any member of Congress (Senator or Representative) can initiate a bill , or proposed law. A bill is debated in a committee in the house where it was introduced. From the committee, it goes to the full house for a vote. If it passes both houses this way, it goes to the President for his signature. A President’s signature turns a bill into law.

7. A bill, or proposed law, is introduced in the House of Representatives or the Senate and then assigned to a committee for discussion and voting. After it passes committee, the bill goes to the full body of that house for a vote. Major House Committees Major Senate Committees If it passes there, it goes to the other house (House to Senate or Senate to House). It is assigned to a committee and the process repeats. If the second House of Congress made any changes, or amendments, to the bill, it must go to a Conference Committee, made up of members of both houses. Here, they work out compromises between the two different versions of the bill. The compromise bill then goes back to both houses for a final vote. Once both houses pass the compromise bill, it is sent to the President to be signed. If vetoed, it goes back to the Congress, where it must pass both houses by a 2/3 majority. If signed, the bill becomes law. House of Representatives Senate How New Laws are Made President Armed Services Agriculture Ways and Means Banking, Finance, and Urban Affairs Education and Labor Judiciary Committee Aeronautical and Space Sciences Armed Services Judiciary Committee Appropriation Foreign Relations President Conference Committee

8. Statutory Interpretation Sometimes wording is ambiguous, either by oversight, or intentional -- as a compromise. New laws must be interpreted by the courts. Plain Meaning Rule -- the courts must use the common sense definition of words. Legislative History and Intent -- sometimes the court can look to the reasons behind the law to determine the legislators’ intent. Public Policy -- the courts will use accepted social policies, such as reducing crime or providing education to interpret a law. Once the law (statute) has been applied by the courts, its interpretation becomes a precedent to be used in future court cases.

10. Administrative Law Federal agencies such as the Federal Aviation Agency (FAA) and the Federal Trade Commission (FTC) and the Bureau of Land Management, all have the power to make regulations which affect citizens and businesses. Agencies were -- and are -- created to fulfill a need. Someone needs to oversee changing technologies and practices and their effects on society. An agency is created when Congress passes enabling legislation , which describes a problem and defines the agency’s powers. Agencies often have considerable power in their areas of specialty, sometimes leading to controversy. The Administrative Procedure Act regulates how agencies operate, in an attempt to reduce the controversy.

14. Power of Agencies -- Investigation Voluntary -- Some businesses freely give information and readily comply with agency recommendations. Subpoena -- an order to appear at a hearing and produce evidence, sometimes documents. Must be relevant to the investigation and under the agency’s jurisdiction , or area of authority. Must not be unreasonably burdensome on the business. Must not be privileged ; this means that a corporate officer may not be required to incriminate himself.

18. Limits on Agency Power Judicial Review A party injured by an agency decision is entitled to an appeal in a federal court, after all appeal options are exhausted within the agency itself. Informational Control and the Public The Freedom of Information Act (FOIA) -- allows any citizen to request information from an agency. The Privacy Act -- prohibits agencies from giving information about an individual to other agencies without consent. There are some exceptions.

19. “ Law is complex. The subject becomes less baffling if we understand how society creates law.”