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DAVID H. ROSENBLOOM
SECOND
EDITION
Administrative Law
for Public Managers
A Member of the Perseus Books Group
www.westviewpress.com
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INISTRATIVE LAW
FOR PUBLIC M
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“Rosenbloom crafted a compelling narrative . . . Students
like Administrative Law for Public Managers because it is
straightforward and easy to understand. I teach a wide range
of students—mid-level managers to students with no work
experience—both are relieved that the content and examples
are easily digestible. It’s an excellent book!”
—Lorenda Ann Naylor, University of Baltimore
“This book presents a profound, as well as comprehensive,
knowledge base of administrative law.”
—Public Administration Review
Administrative Law for Public Managers is an accessible and
comprehensive guide to
the fundamentals of administrative law—why we have
administrative law, the constitutional
constraints on public administration, and administrative law’s
frameworks for rulemaking,
adjudication, enforcement, transparency, and judicial and
legislative review. Rosenbloom
explains administrative law from the perspective of
administrative practice, emphasizing
how various administrative law provisions promote their
underlying goal of improving the fit
between public administration and US democratic-
constitutionalism.
The second edition includes more coverage of state
administrative law, as well as an
expanded discussion of judicial review. It has also been updated
to include the major
statutes, court cases, executive orders, and other major
executive initiatives since 2003.
The addition of discussion questions makes this an even more
valuable resource for public
administration classrooms and students.
David H. Rosenbloom is Distinguished Professor of Public
Administration at American
University. A major contributor to the field and a Fellow in the
National Academy of Public
Administration, he has received numerous awards, including the
Gaus Award for exemplary
scholarship in political science and public administration, the
Waldo Award for outstanding
contributions to the literature and leadership of public
administration, the Levine Award
for excellence in public administration, and the Brownlow
Award for his book, Building
a Legislative-Centered Public Administration. He edited Public
Administration Review,
coedited the Policy Studies Journal, and is now on the editorial
boards of about twenty
academic journals.
Cover Image © Shutterstock
Cover Design: Miguel Santana & Wendy Halitzer
Administrative Law for Public Managers
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Administrative Law for
Public Managers
s e c o n d e d i t i o n
David H. Rosenbloom
American University
A Member of the Perseus Books Group
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Westview Press was founded in 1975 in Boulder, Colorado, by
notable publisher
and intellectual Fred Praeger. Westview Press continues to
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Press honors its long
history of publishing books that matter.
Copyright © 2015 by Westview Press
Published by Westview Press,
A Member of the Perseus Books Group
All rights reserved. Printed in the United States of America. No
part of this book may
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case of brief quotations embodied in critical articles and
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ext. 5000, or e-mail [email protected]
Library of Congress Cataloging-in-Publication Data
Rosenbloom, David H., author.
Administrative law for public managers / David H Rosenbloom.
-- Second edition.
pages cm
ISBN 978-0-8133-4881-0 (paperback) -- ISBN 978-0-8133-
4882-7 (e-book) 1.
Administrative law--United States. 2. Public administration--
United States. I. Title.
KF5402.R669 2014
342.73'06--dc23
2014015458
10 9 8 7 6 5 4 3 2 1
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v
Contents
Preface to the Second Edition xiii
1 What Is Administrative Law? 1
2 The Constitutional Context of US Public Administration 19
3 Administrative Rulemaking 63
4 Evidentiary Adjudication and Enforcement 89
5 Transparency 123
6 Judicial and Legislative Review of Administrative Action 151
7 Staying Current 185
References 195
Index 209
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vii
Detailed Table of Contents
Preface to the Second Edition xiii
1 What Is Administrative Law? 1
Introduction: What Is Administrative Law? 1
Why We Have Administrative Law Statutes: Delegation and
Discretion, 4
Delegation, 4
Discretion, 7
Administrative Decisionmaking, 8
Procedural and Substantive Review of Administrative
Decisions, 10
The Development of US Administrative Law, 12
Conclusion, 16
Additional Reading, 16
Discussion Questions, 16
2 The Constitutional Context of US Public Administration 19
The Separation of Powers, 22
Congress, 22
The President, 23
The Judiciary, 32
Federalism, 35
The Commerce Clause, 36
The Tenth Amendment, 40
The Spending Clause, 41
The Eleventh Amendment, 41
Individuals’ Constitutional Rights in Administrative
Encounters, 43
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viii Detailed Table of Contents
Relationships with Clients and Customers, 43
Equal Protection, 43
New Property and Procedural Due Process, 46
Unconstitutional Conditions, 47
Public Personnel Management, 48
First Amendment Rights, 49
Fourth Amendment Privacy, 51
Procedural Due Process, 51
Equal Protection, 52
Substantive Due Process Rights, 52
Relationships with Contractors, 53
Public Mental Health Patients, 54
Prisoners’ Constitutional Rights, 55
Street-Level Regulatory Encounters, 56
Fourth Amendment Constraints, 56
Equal Protection Constraints, 57
Public Administrators’ Liability for Constitutional Torts, 58
Conclusion, 60
Additional Reading, 60
Discussion Questions, 61
3 Administrative Rulemaking 63
Introduction: Smoking Whitefish, 63
Rulemaking: Definitions and General Concerns, 64
Rulemaking Processes, 71
Limited or No Procedural Requirements, 71
Informal Rulemaking, 72
Formal Rulemaking, 74
Hybrid and Negotiated Rulemaking Processes, 75
Hybrid Rulemaking, 75
Negotiated Rulemaking, 76
Additional Features of the Idealized Legislative Model for
Rulemaking, 78
Representation: Advisory Committees, 78
Protecting Specific Interests and Values, 79
Executive Efforts to Influence Federal Agency Rulemaking, 82
Conclusion: The Philosopher’s Stone Versus the Bubble Effect,
85
Additional Reading, 86
Discussion Questions, 86
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ixDetailed Table of Contents
4 Evidentiary Adjudication and Enforcement 89
Adjudicating Cinderella: A Case of Deceit, Abuse, and Due
Process, 89
What Is Evidentiary Administrative Adjudication? 91
Criticisms of Adjudication, 93
Legal Perspectives, 94
Administrative Perspectives, 95
Why Adjudicate? 99
Agency Convenience, 99
Advantages Presented by Incrementalism, 100
Conduct and Application Cases, 101
Equity and Compassion, 102
Procedural Due Process, 106
Caveat Estoppel, 107
Adjudicatory Hearings, 108
Presiding Officers, 110
Administrative Law Judges, 110
Other Presiding Officers, 113
Decisions and Appeals, 113
Alternative Dispute Resolution, 115
Enforcement, 117
Conclusion: Should Adjudication Be Reformed? 120
Additional Reading, 121
Discussion Questions, 121
5 Transparency 123
Introduction: The Central Intelligence Agency’s Budget? What
Budget? 123
The Administrative Law Framework for Transparent
Government, 125
Public Reporting, 126
Freedom of Information, 128
The Freedom of Information Act, 128
The Presidential Records Act, 138
Privacy, 139
Open Meetings, 142
Whistle-Blower Protection, 145
Qui Tam, 148
Conclusion: An Opaque Fishbowl? 148
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x Detailed Table of Contents
Additional Reading, 149
Discussion Questions, 150
6 Judicial and Legislative Review of Administrative Action 151
Introduction: The Drug Companies’ Acetaminophen, Salicylic
Acid, and Caffeine Headache, 151
Judicial Review of Administrative Action, 153
The Court System, 154
Reviewability, 159
Standing to Sue, 160
Mootness, 162
Ripeness, 163
Political Questions, 165
Timing, 165
Primary Jurisdiction, 165
Exhaustion of Administrative Remedies, 166
Finality, 167
Deference to State Courts, 167
The Scope of Judicial Review, 168
Agency Rules, 169
FOIA Requests, 172
Rulemaking Procedures, 172
Agencies’ Statutory Interpretations, 173
Agency Nonenforcement, 175
Discretionary Actions, 177
Adjudication, 178
Legislative Review of Administration, 178
Oversight by Committees and Subcommittees, 179
Reporting Requirements, 179
Research, Evaluation, Audit, and Investigation, 180
Sunset Legislation, 181
Casework, 181
Strategic Planning and Performance Reports, 182
Congressional Review Act, 182
Conclusion: Checks, Balances, and Federal Administration,
183
Additional Reading, 184
Discussion Questions, 184
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xiDetailed Table of Contents
7 Staying Current 185
The Primary Function of US Administrative Law, 186
Constitutional Contractarianism, 186
Public Administrative Instrumentalism, 187
Periodicals and Websites, 190
Talk Administrative Law Talk, 191
Administrative Law Audits, 192
The Next Level, 192
Discussion Questions, 193
References 195
Index 209
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xiii
Preface to the Second Edition
It may come as a surprise that the Encyclopedia of Life Support
Systems,
which is sponsored by United Nations Educational, Scientific,
and Cul-
tural Organization (UNESCO), contains an entry on
administrative law. I
was certainly surprised when asked to write it.1 I immediately
had a sci-
ence fiction inspired vision of earthlings boarding a spacecraft
clutching
the Encyclopedia in hand as they went to off to colonize a
distant planet.
Administrative law? Life support? At first, the connection
seemed dubious
at best. On reflection, however, I realized that the inclusion of
administra-
tive law is, in fact, necessary for life as we know it in modern,
complex
political systems. All governments in developed countries have
mature
administrative components. Public administration is the
institutional
means through which contemporary governments deliver public
services
and regulate aspects of economic, social, and political life.
Administrative
law is the regulatory law of public administration. It regulates
public ad-
ministrative activity. Without administrative law, public
agencies could go
about their business as they saw fit, perhaps routinely
emphasizing ad-
ministrative convenience and self-interest over other values and
the public
interest. In the United States, administrative law infuses public
adminis-
tration with democratic-constitutional values, including
stakeholder repre-
sentation, participation, transparency, fairness, accountability,
and limited
government intrusion on private activity. Life was once, and
still could be,
supported without it. However, other than perhaps some
administrators
themselves, few, if any, who know the history of US public
administration
would want to return to the days before the federal
Administrative Proce-
dure Act of 1946 went into effect.
1. See David H. Rosenbloom, “Administrative Law,” UNESCO-
EOLSS, http://www.eolss
.net/sample-chapters/c14/e1-34-05-07.pdf.
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xiv Preface to the Second Edition
To appreciate the importance of administrative law, one has to
bear in
mind that although students and scholars in the field of public
administra-
tion tend to view administration as providing valuable public
services, the
rest of the world doesn’t necessarily see it this way. Many in
legislatures,
small businesses, the health, medicine, industrial, and research
sectors, and
myriad other walks of life think of administration as
bureaucracy impos-
ing red tape and unwanted, often unnecessary, and even
seemingly bizarre
regulations. This is why administrative law books may contain
chapters
on “getting into court” and “staying in court” (W. Fox 2000).
Looking from
the outside in, administrative law constrains public
administration, guards
against abuses, and enables chief executives, legislatures, and
courts to
keep administrators in check. From the inside looking out,
administrative
law seeks to guide administrators and agencies in achieving
their objec-
tives within the framework of the nation’s democratic-
constitutional val-
ues and practices.
A solid grounding in administrative law is a prerequisite for
under-
standing a substantial amount about the internal administrative
processes
used on a daily basis by public agencies in the United States. As
with other
aspects of public administrative practice, it is better to learn
administra-
tive law in the classroom than to be bewildered by its
pervasiveness upon
entering a public-sector job. Students already working in the
public sector
will need no reminder of the importance of administrative law.
Neverthe-
less, they will benefit from gaining a systematic understanding
of how and
why it developed as it did.
Administrative law has such a major impact on what
administrators and
agencies do on a daily basis that it cannot be treated as
tangential or as a
specialization best left to lawyers. It needs to be integrated into
day-to-day
practice. For some administrators, such as those engaged in
rulemaking,
adjudication, and processing freedom-of-information requests,
administra-
tive law defines the fundamental structure and activity of their
jobs.
This book aims to make administrative law accessible to public
admin-
istration students, both those new to the subject and those
already in prac-
tice. The book focuses on the essentials that public managers
should know
about administrative law—why we have administrative law; the
broad
constitutional constraints on public administration;
administrative law’s
frameworks for rulemaking, adjudication, enforcement, and
transparency;
and the parameters of internal executive and external judicial
and legisla-
tive review of administrative action. The book views public
administration
from the perspectives of managing, organizing, and doing
administration
rather than lawyering. It is far more concerned with staying out
of court
than getting into it.
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xvPreface to the Second Edition
The discussion is organized around federal administrative law.
Where
appropriate, state approaches are noted as alternatives or
parallels to fed-
eral designs and requirements. After reading this book and
grappling with
the discussion questions at the end of each chapter, readers
should have
a firm grasp of federal administrative law and no difficulty
learning the
administrative law of any state.
Unlike most administrative law texts, the book neither contains
legal
cases nor devotes much attention to the development of case
law. Federal
court decisions are readily available on the Internet, and
instructors can se-
lect them flexibly to augment the text. Books dealing
comprehensively with
case law tend toward dysfunctional excess in general public
administrative
education, sometimes exceeding 1,000 pages of material that is
apt to go
largely unused and soon be forgotten. This book also differs
from others
by including a chapter on the constitutional context of US
public adminis-
tration, which explains the constitutional constructs and
doctrines within
which today’s public administration and administrative law
operate.
The book is intended for classroom use in three ways. First, as a
supple-
ment, it will efficiently cover the main dimensions of
administrative law
in introductory public administration classes and courses on
bureaucratic
politics or the political context of public management. Second,
it can serve
as a core text in public administration courses dealing with
administrative
law or the legal basis or environment of public administration.
As a core
text, it can be coupled with selected legal cases of the
instructor’s choice.
Third, in constitutional law courses, it can serve as a
supplement to explain
how abstract constitutional concerns such as delegations of
legislative au-
thority and procedural due process are transformed in concrete
action by
administrative agencies. It is unlikely that the book will be used
in law
school classes, though law students may find it refreshingly
concise and
helpful in explaining the political and administrative contexts in
which ad-
ministrative law is applied and the larger purposes it serves.
The challenge in writing the first edition was to explain the
essentials
of administrative law clearly and accurately, in nontechnical
terms, with
sufficient depth to provide readers with a sophisticated, lasting
under-
standing of the subject matter. That there is now a second
edition is testa-
ment to the success of that effort. The new edition thoroughly
updates the
previous one, adding discussion of new statutes and law cases,
as well as
developments during the first five years of Barack Obama’s
presidency.
It also fine-tunes the earlier discussion for clarity. I hope those
familiar
with the first edition will view this one as fresh and refreshing
and those
new to the text will find in it a welcome alternative to other
treatments of
administrative law.
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xvi Preface to the Second Edition
This edition continues to benefit from those acknowledged in
the earlier
one. I continue to extend my thanks to them. I would also like
to thank the
reviewers who gave such thoughtful feedback on the first
edition for this
revision, including Bradley Bjelke (California Lutheran
University), Lo-
renda Ann Naylor (University of Baltimore), Stephanie
Newbold (Ameri-
can University), Cindy Pressley (Stephen F. Austin State
University), Susan
E. Zinner (Indiana University Northwest), and others who
wished to re-
main anonymous. Special mention should go to my American
University
colleague Jeffrey Lubbers, who is always generous with his time
and pa-
tient in sharing his encyclopedic knowledge to explain the finer
points of
US federal administrative law to me.
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1
1
What Is Administrative Law?
Introduction: What Is Administrative Law?
Administrative law can be defined as the body of constitutional
provisions,
statutes, court decisions, executive orders, and other official
directives that,
first, (a) regulate the procedures agencies use in adjudicating,
rulemaking,
and adopting policies, (b) control the exercise of their authority
to enforce
laws and regulations, and (c) govern the extent to which
administration is
open to public scrutiny (i.e., transparent); and, second, provide
for review
of agency decisions, rules, orders, policies, actions, and other
aspects of
their operations. In short, administrative law is the regulatory
law of pub-
lic administration. It regulates how public administrative
agencies do what
they do and why, as well as their authority to do it. As such, it
is among
the most important aspects of modern government. We are all
affected by
administrative law in myriad ways in our daily lives.
Food may present the best example of why administrative law is
so
important. What did you eat today? Is that all? Well, probably
not. The
US Food and Drug Administration (FDA) regulates the
“maximum lev-
els of natural or unavoidable defects in food for human use that
present
no health hazard.” Known as the FDA “Rat Hair List,” these
regulations
specify the amount of rodent hair that can be in one hundred
grams of var-
ious foods such as apple butter, oregano, and peanut butter. The
list also
regulates the number of insect fragments and eggs, milligrams
of mamma-
lian excreta, maggots, and other unappetizing impurities in the
foods that
Americans consume every day (FDA, periodic). Chocolate can
have up to
9780813348810-text.indd 1 5/14/14 4:09 PM
2 1. What Is Administrative Law?
sixty insect fragments per hundred grams (about two bars) and
one rodent
hair. On average, Americans eat 1.2 pounds of spider eggs and
2.5 pounds
of insect parts annually.1
The FDA is empowered to set such standards by law. It would
have
no power to do so without statutory authorization. However, it
does have
considerable discretion in deciding what levels are unavoidable
and do not
pose health hazards and what to do about products that exceed
the speci-
fied limits. An initial question is whether “unavoidable” should
be deter-
mined based on technology or economics. Although the agency
maintains
that some defects cannot be completely screened out, removing
from pizza
sauce more fly eggs and maggots than are allowed is probably
technolog-
ically feasible. Some producers may already do so. But is it
economically
feasible for the entire industry of large and small, relatively
financially
strong and weak firms to do so? Determining unavoidability
also involves
economic feasibility, which is related to the cost of producing
products,
their market price, and consumer demand for them. Some
balance between
purity and cost must be struck. The FDA seeks a desirable
trade-off by
testing products nationwide and determining the levels of
defects present
under the best production processes in use. This approach
assumes that
requiring investment to make the best practices even better is
economically
infeasible, or at least undesirable, and ultimately unnecessary
because,
while unappetizing, the acceptable levels are deemed safe to
consume.
Safety is a second issue. Clearly, if people are not getting sick
from the
allowable defect levels in regulated foods, then these product
levels are
probably safe. Yet it is possible that the cumulative effect of the
permit-
ted impurities over one’s lifetime takes a toll on health, even
though the
harm may not be traceable to them. It is also possible that the
defects af-
fect people differently based on age, allergies, and other
factors. No doubt,
aside from looking at best production practices, the FDA takes
the views
of health experts and research into account in considering where
to set and
maintain defect levels.
A third issue is transparency. As a consumer you may wonder if
the
FDA’s regulations provide adequate information and protection.
We are
all familiar with the nutrition labels on food products sold in
the United
States. Peanut butter lists calories, fat calories, total fat,
saturated fat, trans
fat, polyunsaturated fat, monounsaturated fat, cholesterol,
vitamins A
and C, sodium, total carbohydrates, fiber, sugars, protein,
calcium, and
iron. The average number of insect fragments and rodent hairs
is missing.
1. Data from
http://www.spydersden.worldpress.com/2010/page/78;
www.chacha.com/
question/does-the-average-american-really-consume-1.2-
pounds-of-spider-eggs-a-year-and
-eat-2.5-pounds-of-insect-parts-a-year.
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3Introduction: What Is Administrative Law?
Should this be identified? Who should decide—Congress, which
is elected
by “We the People”; an administrative agency like the FDA,
which is
not; or the food industry itself? If it were decided to require
information
about “unavoidable defects,” would it be sufficient to indicate
compliance
with FDA allowable levels? Should that level be specified on
the product?
Should the average number of various impurities be indicated?
If Congress
makes such decisions, it will hold hearings and receive
testimony from
representatives of the food industry such as the Snack Food
Association,
Pizza Industry Council, US Potato Board, National
Confectioners’ Associ-
ation, Whole Grains Council, and other groups. If an agency
makes these
decisions, how should its decisionmaking process be structured?
Should
it be open to input from the same kinds of stakeholders, and if
so, how?
Regardless of where the decision is made, what role, if any,
should health
experts, hospitals and other care providers, health insurance
companies,
and consumer advocates play?
Finally, how should the FDA’s defect levels be enforced?
Should the FDA
test products already in the marketplace, inspect production
facilities, or
both? If a firm’s product exceeds the allowable defect levels,
what steps
should be taken? What opportunities should the firm have to
contest the
FDA’s finding? Such questions are the stuff of administrative
law. Although
they focus largely on process, as they suggest, process can
affect substance.
Administrative policymaking often involves a wide range of
consider-
ations and complex trade-offs like those involved in
establishing the FDA’s
Rat Hair List. Administrators make a great number of decisions
that di-
rectly affect the health, safety, and welfare of the population or
sections
of it. They have to address difficult issues regarding
transportation, envi-
ronmental protection, economic practices, labor relations, and
much, much
more. Their decisions are of fundamental consequence to the
nation’s qual-
ity of life and attract a great deal of political and media
attention. Equally
important to our constitutional democracy, though generally
less visible
and interesting to the public, is how administrators should make
and en-
force their decisions.
The how rather than the what is the essence of administrative
law. What
steps should an administrator and an agency take before
regulating impuri-
ties in food? What values should be weighed and how heavily?
How much
evidence should be adduced to support agencies’ conclusions?
How open to
public scrutiny and participation should decisionmaking be?
How should
the costs and benefits of agency action be weighed? How can an
agency
assess the impact of greater transparency on consumers’
behavior? Would
including the FDA’s allowable defect levels on nutrition labels
change
Americans’ diets, and if so, how—toward more or less healthful
diets?
9780813348810-text.indd 3 5/14/14 4:09 PM
LuTing
Highlight
4 1. What Is Administrative Law?
Additional administrative law questions focus on accountability
and re-
view of agency decisionmaking. How should the FDA be held
accountable
for whatever levels it sets? Should its standards be subject to
review by
Congress and/or a unit within the executive branch, such as the
Office
of Management and Budget (OMB)? Presuming that one or more
of its
standards is challenged in court, should the FDA have to show
statistically
that its maximum levels are safe, that lower levels would not be
safer, or
that the defects are unavoidable? Should the data relied on to
reach its
decisions be available to the public? Concerns like these are the
crux of
administrative law, and they are of recurring importance.
For the most part, administrative law is generic in the sense that
one
size fits all. Although there are apt to be exceptions, it more or
less applies
across the board to administrative agencies within a
government, as op-
posed to being tailored to match each agency’s mission
individually. The
phrase “administrative law,” as used in the United States, makes
an im-
perfect distinction between the procedures agencies use to make
rules, set
standards, and adjudicate and the substantive content produced
by those
actions. In other words, how the FDA sets maximum defect
levels is a mat-
ter of administrative law, whereas the levels themselves are not.
Similarly,
how the Environmental Protection Agency (EPA) makes rules
for clean air
and water is a matter of administrative law; the actual
regulations, such as
parts per billion of arsenic allowed in groundwater, are not. The
distinc-
tion is imperfect because administrative law provides for
judicial review
of agencies’ rules, standards, and adjudicatory decisions, which
may be
found unlawful if their content is irrational or their scope is
beyond the
law. Moreover, administrative law, with the exception of some
forms of
adjudication, is not concerned with agency decisions regarding
internal
personnel, organizational, budgetary, outsourcing, and similar
administra-
tive matters. All levels of …
Discussion
Both Congress and the Judiciary have oversight responsibilities
over Executive Branch agencies. Which Branch do you
believe has been the most effective in ensuring Executive
agencies comply with the intent of Congress and the Courts?
Please answer this question, make appropriate references to the
readings (Rosenbloom - Chapter 6)
2-3 paragraphs, minimum 300 words.

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  • 1. DAVID H. ROSENBLOOM SECOND EDITION Administrative Law for Public Managers A Member of the Perseus Books Group www.westviewpress.com R O S E N B L O O M ADM INISTRATIVE LAW FOR PUBLIC M ANAGERS
  • 2. S E C O N D E D IT IO N “Rosenbloom crafted a compelling narrative . . . Students like Administrative Law for Public Managers because it is straightforward and easy to understand. I teach a wide range of students—mid-level managers to students with no work experience—both are relieved that the content and examples are easily digestible. It’s an excellent book!” —Lorenda Ann Naylor, University of Baltimore “This book presents a profound, as well as comprehensive, knowledge base of administrative law.” —Public Administration Review Administrative Law for Public Managers is an accessible and comprehensive guide to the fundamentals of administrative law—why we have
  • 3. administrative law, the constitutional constraints on public administration, and administrative law’s frameworks for rulemaking, adjudication, enforcement, transparency, and judicial and legislative review. Rosenbloom explains administrative law from the perspective of administrative practice, emphasizing how various administrative law provisions promote their underlying goal of improving the fit between public administration and US democratic- constitutionalism. The second edition includes more coverage of state administrative law, as well as an expanded discussion of judicial review. It has also been updated to include the major statutes, court cases, executive orders, and other major executive initiatives since 2003. The addition of discussion questions makes this an even more valuable resource for public administration classrooms and students. David H. Rosenbloom is Distinguished Professor of Public Administration at American University. A major contributor to the field and a Fellow in the National Academy of Public Administration, he has received numerous awards, including the Gaus Award for exemplary scholarship in political science and public administration, the Waldo Award for outstanding contributions to the literature and leadership of public administration, the Levine Award for excellence in public administration, and the Brownlow Award for his book, Building a Legislative-Centered Public Administration. He edited Public Administration Review,
  • 4. coedited the Policy Studies Journal, and is now on the editorial boards of about twenty academic journals. Cover Image © Shutterstock Cover Design: Miguel Santana & Wendy Halitzer Administrative Law for Public Managers 9780813348810-text.indd 1 5/14/14 4:09 PM 9780813348810-text.indd 2 5/14/14 4:09 PM Administrative Law for Public Managers s e c o n d e d i t i o n David H. Rosenbloom American University A Member of the Perseus Books Group 9780813348810-text.indd 3 5/20/14 1:25 PM Westview Press was founded in 1975 in Boulder, Colorado, by notable publisher and intellectual Fred Praeger. Westview Press continues to
  • 5. publish scholarly titles and high-quality undergraduate- and graduate-level textbooks in core social science disciplines. With books developed, written, and edited with the needs of serious nonfiction readers, professors, and students in mind, Westview Press honors its long history of publishing books that matter. Copyright © 2015 by Westview Press Published by Westview Press, A Member of the Perseus Books Group All rights reserved. Printed in the United States of America. No part of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. For information, address Westview Press, 2465 Central Avenue, Boulder, CO 80301. Find us on the World Wide Web at www.westviewpress.com. Every effort has been made to secure required permissions for all text, images, maps, and other art reprinted in this volume. Westview Press books are available at special discounts for bulk purchases in the United States by corporations, institutions, and other organizations. For more information, please contact the Special Markets Department at the Perseus Books Group, 2300 Chestnut Street, Suite 200, Philadelphia, PA 19103, or call (800) 810-4145,
  • 6. ext. 5000, or e-mail [email protected] Library of Congress Cataloging-in-Publication Data Rosenbloom, David H., author. Administrative law for public managers / David H Rosenbloom. -- Second edition. pages cm ISBN 978-0-8133-4881-0 (paperback) -- ISBN 978-0-8133- 4882-7 (e-book) 1. Administrative law--United States. 2. Public administration-- United States. I. Title. KF5402.R669 2014 342.73'06--dc23 2014015458 10 9 8 7 6 5 4 3 2 1 9780813348810-text.indd 4 5/14/14 4:09 PM v Contents Preface to the Second Edition xiii 1 What Is Administrative Law? 1 2 The Constitutional Context of US Public Administration 19 3 Administrative Rulemaking 63 4 Evidentiary Adjudication and Enforcement 89 5 Transparency 123
  • 7. 6 Judicial and Legislative Review of Administrative Action 151 7 Staying Current 185 References 195 Index 209 9780813348810-text.indd 5 5/14/14 4:09 PM 9780813348810-text.indd 6 5/14/14 4:09 PM vii Detailed Table of Contents Preface to the Second Edition xiii 1 What Is Administrative Law? 1 Introduction: What Is Administrative Law? 1 Why We Have Administrative Law Statutes: Delegation and Discretion, 4 Delegation, 4 Discretion, 7 Administrative Decisionmaking, 8 Procedural and Substantive Review of Administrative Decisions, 10 The Development of US Administrative Law, 12
  • 8. Conclusion, 16 Additional Reading, 16 Discussion Questions, 16 2 The Constitutional Context of US Public Administration 19 The Separation of Powers, 22 Congress, 22 The President, 23 The Judiciary, 32 Federalism, 35 The Commerce Clause, 36 The Tenth Amendment, 40 The Spending Clause, 41 The Eleventh Amendment, 41 Individuals’ Constitutional Rights in Administrative Encounters, 43 9780813348810-text.indd 7 5/14/14 4:09 PM viii Detailed Table of Contents Relationships with Clients and Customers, 43 Equal Protection, 43 New Property and Procedural Due Process, 46 Unconstitutional Conditions, 47 Public Personnel Management, 48 First Amendment Rights, 49 Fourth Amendment Privacy, 51 Procedural Due Process, 51 Equal Protection, 52
  • 9. Substantive Due Process Rights, 52 Relationships with Contractors, 53 Public Mental Health Patients, 54 Prisoners’ Constitutional Rights, 55 Street-Level Regulatory Encounters, 56 Fourth Amendment Constraints, 56 Equal Protection Constraints, 57 Public Administrators’ Liability for Constitutional Torts, 58 Conclusion, 60 Additional Reading, 60 Discussion Questions, 61 3 Administrative Rulemaking 63 Introduction: Smoking Whitefish, 63 Rulemaking: Definitions and General Concerns, 64 Rulemaking Processes, 71 Limited or No Procedural Requirements, 71 Informal Rulemaking, 72 Formal Rulemaking, 74 Hybrid and Negotiated Rulemaking Processes, 75 Hybrid Rulemaking, 75 Negotiated Rulemaking, 76 Additional Features of the Idealized Legislative Model for Rulemaking, 78 Representation: Advisory Committees, 78 Protecting Specific Interests and Values, 79 Executive Efforts to Influence Federal Agency Rulemaking, 82 Conclusion: The Philosopher’s Stone Versus the Bubble Effect,
  • 10. 85 Additional Reading, 86 Discussion Questions, 86 9780813348810-text.indd 8 5/14/14 4:09 PM ixDetailed Table of Contents 4 Evidentiary Adjudication and Enforcement 89 Adjudicating Cinderella: A Case of Deceit, Abuse, and Due Process, 89 What Is Evidentiary Administrative Adjudication? 91 Criticisms of Adjudication, 93 Legal Perspectives, 94 Administrative Perspectives, 95 Why Adjudicate? 99 Agency Convenience, 99 Advantages Presented by Incrementalism, 100 Conduct and Application Cases, 101 Equity and Compassion, 102 Procedural Due Process, 106 Caveat Estoppel, 107 Adjudicatory Hearings, 108 Presiding Officers, 110 Administrative Law Judges, 110 Other Presiding Officers, 113
  • 11. Decisions and Appeals, 113 Alternative Dispute Resolution, 115 Enforcement, 117 Conclusion: Should Adjudication Be Reformed? 120 Additional Reading, 121 Discussion Questions, 121 5 Transparency 123 Introduction: The Central Intelligence Agency’s Budget? What Budget? 123 The Administrative Law Framework for Transparent Government, 125 Public Reporting, 126 Freedom of Information, 128 The Freedom of Information Act, 128 The Presidential Records Act, 138 Privacy, 139 Open Meetings, 142 Whistle-Blower Protection, 145 Qui Tam, 148 Conclusion: An Opaque Fishbowl? 148 9780813348810-text.indd 9 5/14/14 4:09 PM x Detailed Table of Contents Additional Reading, 149 Discussion Questions, 150
  • 12. 6 Judicial and Legislative Review of Administrative Action 151 Introduction: The Drug Companies’ Acetaminophen, Salicylic Acid, and Caffeine Headache, 151 Judicial Review of Administrative Action, 153 The Court System, 154 Reviewability, 159 Standing to Sue, 160 Mootness, 162 Ripeness, 163 Political Questions, 165 Timing, 165 Primary Jurisdiction, 165 Exhaustion of Administrative Remedies, 166 Finality, 167 Deference to State Courts, 167 The Scope of Judicial Review, 168 Agency Rules, 169 FOIA Requests, 172 Rulemaking Procedures, 172 Agencies’ Statutory Interpretations, 173 Agency Nonenforcement, 175 Discretionary Actions, 177 Adjudication, 178 Legislative Review of Administration, 178 Oversight by Committees and Subcommittees, 179 Reporting Requirements, 179 Research, Evaluation, Audit, and Investigation, 180 Sunset Legislation, 181 Casework, 181
  • 13. Strategic Planning and Performance Reports, 182 Congressional Review Act, 182 Conclusion: Checks, Balances, and Federal Administration, 183 Additional Reading, 184 Discussion Questions, 184 9780813348810-text.indd 10 5/14/14 4:09 PM xiDetailed Table of Contents 7 Staying Current 185 The Primary Function of US Administrative Law, 186 Constitutional Contractarianism, 186 Public Administrative Instrumentalism, 187 Periodicals and Websites, 190 Talk Administrative Law Talk, 191 Administrative Law Audits, 192 The Next Level, 192 Discussion Questions, 193 References 195 Index 209 9780813348810-text.indd 11 5/14/14 4:09 PM 9780813348810-text.indd 12 5/14/14 4:09 PM
  • 14. xiii Preface to the Second Edition It may come as a surprise that the Encyclopedia of Life Support Systems, which is sponsored by United Nations Educational, Scientific, and Cul- tural Organization (UNESCO), contains an entry on administrative law. I was certainly surprised when asked to write it.1 I immediately had a sci- ence fiction inspired vision of earthlings boarding a spacecraft clutching the Encyclopedia in hand as they went to off to colonize a distant planet. Administrative law? Life support? At first, the connection seemed dubious at best. On reflection, however, I realized that the inclusion of administra- tive law is, in fact, necessary for life as we know it in modern, complex political systems. All governments in developed countries have mature administrative components. Public administration is the institutional means through which contemporary governments deliver public services and regulate aspects of economic, social, and political life. Administrative law is the regulatory law of public administration. It regulates public ad- ministrative activity. Without administrative law, public agencies could go about their business as they saw fit, perhaps routinely
  • 15. emphasizing ad- ministrative convenience and self-interest over other values and the public interest. In the United States, administrative law infuses public adminis- tration with democratic-constitutional values, including stakeholder repre- sentation, participation, transparency, fairness, accountability, and limited government intrusion on private activity. Life was once, and still could be, supported without it. However, other than perhaps some administrators themselves, few, if any, who know the history of US public administration would want to return to the days before the federal Administrative Proce- dure Act of 1946 went into effect. 1. See David H. Rosenbloom, “Administrative Law,” UNESCO- EOLSS, http://www.eolss .net/sample-chapters/c14/e1-34-05-07.pdf. 9780813348810-text.indd 13 5/14/14 4:09 PM xiv Preface to the Second Edition To appreciate the importance of administrative law, one has to bear in mind that although students and scholars in the field of public administra- tion tend to view administration as providing valuable public services, the rest of the world doesn’t necessarily see it this way. Many in
  • 16. legislatures, small businesses, the health, medicine, industrial, and research sectors, and myriad other walks of life think of administration as bureaucracy impos- ing red tape and unwanted, often unnecessary, and even seemingly bizarre regulations. This is why administrative law books may contain chapters on “getting into court” and “staying in court” (W. Fox 2000). Looking from the outside in, administrative law constrains public administration, guards against abuses, and enables chief executives, legislatures, and courts to keep administrators in check. From the inside looking out, administrative law seeks to guide administrators and agencies in achieving their objec- tives within the framework of the nation’s democratic- constitutional val- ues and practices. A solid grounding in administrative law is a prerequisite for under- standing a substantial amount about the internal administrative processes used on a daily basis by public agencies in the United States. As with other aspects of public administrative practice, it is better to learn administra- tive law in the classroom than to be bewildered by its pervasiveness upon entering a public-sector job. Students already working in the public sector will need no reminder of the importance of administrative law.
  • 17. Neverthe- less, they will benefit from gaining a systematic understanding of how and why it developed as it did. Administrative law has such a major impact on what administrators and agencies do on a daily basis that it cannot be treated as tangential or as a specialization best left to lawyers. It needs to be integrated into day-to-day practice. For some administrators, such as those engaged in rulemaking, adjudication, and processing freedom-of-information requests, administra- tive law defines the fundamental structure and activity of their jobs. This book aims to make administrative law accessible to public admin- istration students, both those new to the subject and those already in prac- tice. The book focuses on the essentials that public managers should know about administrative law—why we have administrative law; the broad constitutional constraints on public administration; administrative law’s frameworks for rulemaking, adjudication, enforcement, and transparency; and the parameters of internal executive and external judicial and legisla- tive review of administrative action. The book views public administration from the perspectives of managing, organizing, and doing administration
  • 18. rather than lawyering. It is far more concerned with staying out of court than getting into it. 9780813348810-text.indd 14 5/14/14 4:09 PM xvPreface to the Second Edition The discussion is organized around federal administrative law. Where appropriate, state approaches are noted as alternatives or parallels to fed- eral designs and requirements. After reading this book and grappling with the discussion questions at the end of each chapter, readers should have a firm grasp of federal administrative law and no difficulty learning the administrative law of any state. Unlike most administrative law texts, the book neither contains legal cases nor devotes much attention to the development of case law. Federal court decisions are readily available on the Internet, and instructors can se- lect them flexibly to augment the text. Books dealing comprehensively with case law tend toward dysfunctional excess in general public administrative education, sometimes exceeding 1,000 pages of material that is apt to go largely unused and soon be forgotten. This book also differs from others
  • 19. by including a chapter on the constitutional context of US public adminis- tration, which explains the constitutional constructs and doctrines within which today’s public administration and administrative law operate. The book is intended for classroom use in three ways. First, as a supple- ment, it will efficiently cover the main dimensions of administrative law in introductory public administration classes and courses on bureaucratic politics or the political context of public management. Second, it can serve as a core text in public administration courses dealing with administrative law or the legal basis or environment of public administration. As a core text, it can be coupled with selected legal cases of the instructor’s choice. Third, in constitutional law courses, it can serve as a supplement to explain how abstract constitutional concerns such as delegations of legislative au- thority and procedural due process are transformed in concrete action by administrative agencies. It is unlikely that the book will be used in law school classes, though law students may find it refreshingly concise and helpful in explaining the political and administrative contexts in which ad- ministrative law is applied and the larger purposes it serves. The challenge in writing the first edition was to explain the
  • 20. essentials of administrative law clearly and accurately, in nontechnical terms, with sufficient depth to provide readers with a sophisticated, lasting under- standing of the subject matter. That there is now a second edition is testa- ment to the success of that effort. The new edition thoroughly updates the previous one, adding discussion of new statutes and law cases, as well as developments during the first five years of Barack Obama’s presidency. It also fine-tunes the earlier discussion for clarity. I hope those familiar with the first edition will view this one as fresh and refreshing and those new to the text will find in it a welcome alternative to other treatments of administrative law. 9780813348810-text.indd 15 5/14/14 4:09 PM xvi Preface to the Second Edition This edition continues to benefit from those acknowledged in the earlier one. I continue to extend my thanks to them. I would also like to thank the reviewers who gave such thoughtful feedback on the first edition for this revision, including Bradley Bjelke (California Lutheran University), Lo- renda Ann Naylor (University of Baltimore), Stephanie
  • 21. Newbold (Ameri- can University), Cindy Pressley (Stephen F. Austin State University), Susan E. Zinner (Indiana University Northwest), and others who wished to re- main anonymous. Special mention should go to my American University colleague Jeffrey Lubbers, who is always generous with his time and pa- tient in sharing his encyclopedic knowledge to explain the finer points of US federal administrative law to me. 9780813348810-text.indd 16 5/14/14 4:09 PM 1 1 What Is Administrative Law? Introduction: What Is Administrative Law? Administrative law can be defined as the body of constitutional provisions, statutes, court decisions, executive orders, and other official directives that, first, (a) regulate the procedures agencies use in adjudicating, rulemaking, and adopting policies, (b) control the exercise of their authority to enforce laws and regulations, and (c) govern the extent to which administration is open to public scrutiny (i.e., transparent); and, second, provide for review
  • 22. of agency decisions, rules, orders, policies, actions, and other aspects of their operations. In short, administrative law is the regulatory law of pub- lic administration. It regulates how public administrative agencies do what they do and why, as well as their authority to do it. As such, it is among the most important aspects of modern government. We are all affected by administrative law in myriad ways in our daily lives. Food may present the best example of why administrative law is so important. What did you eat today? Is that all? Well, probably not. The US Food and Drug Administration (FDA) regulates the “maximum lev- els of natural or unavoidable defects in food for human use that present no health hazard.” Known as the FDA “Rat Hair List,” these regulations specify the amount of rodent hair that can be in one hundred grams of var- ious foods such as apple butter, oregano, and peanut butter. The list also regulates the number of insect fragments and eggs, milligrams of mamma- lian excreta, maggots, and other unappetizing impurities in the foods that Americans consume every day (FDA, periodic). Chocolate can have up to 9780813348810-text.indd 1 5/14/14 4:09 PM
  • 23. 2 1. What Is Administrative Law? sixty insect fragments per hundred grams (about two bars) and one rodent hair. On average, Americans eat 1.2 pounds of spider eggs and 2.5 pounds of insect parts annually.1 The FDA is empowered to set such standards by law. It would have no power to do so without statutory authorization. However, it does have considerable discretion in deciding what levels are unavoidable and do not pose health hazards and what to do about products that exceed the speci- fied limits. An initial question is whether “unavoidable” should be deter- mined based on technology or economics. Although the agency maintains that some defects cannot be completely screened out, removing from pizza sauce more fly eggs and maggots than are allowed is probably technolog- ically feasible. Some producers may already do so. But is it economically feasible for the entire industry of large and small, relatively financially strong and weak firms to do so? Determining unavoidability also involves economic feasibility, which is related to the cost of producing products, their market price, and consumer demand for them. Some balance between purity and cost must be struck. The FDA seeks a desirable
  • 24. trade-off by testing products nationwide and determining the levels of defects present under the best production processes in use. This approach assumes that requiring investment to make the best practices even better is economically infeasible, or at least undesirable, and ultimately unnecessary because, while unappetizing, the acceptable levels are deemed safe to consume. Safety is a second issue. Clearly, if people are not getting sick from the allowable defect levels in regulated foods, then these product levels are probably safe. Yet it is possible that the cumulative effect of the permit- ted impurities over one’s lifetime takes a toll on health, even though the harm may not be traceable to them. It is also possible that the defects af- fect people differently based on age, allergies, and other factors. No doubt, aside from looking at best production practices, the FDA takes the views of health experts and research into account in considering where to set and maintain defect levels. A third issue is transparency. As a consumer you may wonder if the FDA’s regulations provide adequate information and protection. We are all familiar with the nutrition labels on food products sold in the United
  • 25. States. Peanut butter lists calories, fat calories, total fat, saturated fat, trans fat, polyunsaturated fat, monounsaturated fat, cholesterol, vitamins A and C, sodium, total carbohydrates, fiber, sugars, protein, calcium, and iron. The average number of insect fragments and rodent hairs is missing. 1. Data from http://www.spydersden.worldpress.com/2010/page/78; www.chacha.com/ question/does-the-average-american-really-consume-1.2- pounds-of-spider-eggs-a-year-and -eat-2.5-pounds-of-insect-parts-a-year. 9780813348810-text.indd 2 5/14/14 4:09 PM 3Introduction: What Is Administrative Law? Should this be identified? Who should decide—Congress, which is elected by “We the People”; an administrative agency like the FDA, which is not; or the food industry itself? If it were decided to require information about “unavoidable defects,” would it be sufficient to indicate compliance with FDA allowable levels? Should that level be specified on the product? Should the average number of various impurities be indicated? If Congress makes such decisions, it will hold hearings and receive testimony from
  • 26. representatives of the food industry such as the Snack Food Association, Pizza Industry Council, US Potato Board, National Confectioners’ Associ- ation, Whole Grains Council, and other groups. If an agency makes these decisions, how should its decisionmaking process be structured? Should it be open to input from the same kinds of stakeholders, and if so, how? Regardless of where the decision is made, what role, if any, should health experts, hospitals and other care providers, health insurance companies, and consumer advocates play? Finally, how should the FDA’s defect levels be enforced? Should the FDA test products already in the marketplace, inspect production facilities, or both? If a firm’s product exceeds the allowable defect levels, what steps should be taken? What opportunities should the firm have to contest the FDA’s finding? Such questions are the stuff of administrative law. Although they focus largely on process, as they suggest, process can affect substance. Administrative policymaking often involves a wide range of consider- ations and complex trade-offs like those involved in establishing the FDA’s Rat Hair List. Administrators make a great number of decisions that di- rectly affect the health, safety, and welfare of the population or
  • 27. sections of it. They have to address difficult issues regarding transportation, envi- ronmental protection, economic practices, labor relations, and much, much more. Their decisions are of fundamental consequence to the nation’s qual- ity of life and attract a great deal of political and media attention. Equally important to our constitutional democracy, though generally less visible and interesting to the public, is how administrators should make and en- force their decisions. The how rather than the what is the essence of administrative law. What steps should an administrator and an agency take before regulating impuri- ties in food? What values should be weighed and how heavily? How much evidence should be adduced to support agencies’ conclusions? How open to public scrutiny and participation should decisionmaking be? How should the costs and benefits of agency action be weighed? How can an agency assess the impact of greater transparency on consumers’ behavior? Would including the FDA’s allowable defect levels on nutrition labels change Americans’ diets, and if so, how—toward more or less healthful diets? 9780813348810-text.indd 3 5/14/14 4:09 PM
  • 28. LuTing Highlight 4 1. What Is Administrative Law? Additional administrative law questions focus on accountability and re- view of agency decisionmaking. How should the FDA be held accountable for whatever levels it sets? Should its standards be subject to review by Congress and/or a unit within the executive branch, such as the Office of Management and Budget (OMB)? Presuming that one or more of its standards is challenged in court, should the FDA have to show statistically that its maximum levels are safe, that lower levels would not be safer, or that the defects are unavoidable? Should the data relied on to reach its decisions be available to the public? Concerns like these are the crux of administrative law, and they are of recurring importance. For the most part, administrative law is generic in the sense that one size fits all. Although there are apt to be exceptions, it more or less applies across the board to administrative agencies within a government, as op- posed to being tailored to match each agency’s mission individually. The phrase “administrative law,” as used in the United States, makes
  • 29. an im- perfect distinction between the procedures agencies use to make rules, set standards, and adjudicate and the substantive content produced by those actions. In other words, how the FDA sets maximum defect levels is a mat- ter of administrative law, whereas the levels themselves are not. Similarly, how the Environmental Protection Agency (EPA) makes rules for clean air and water is a matter of administrative law; the actual regulations, such as parts per billion of arsenic allowed in groundwater, are not. The distinc- tion is imperfect because administrative law provides for judicial review of agencies’ rules, standards, and adjudicatory decisions, which may be found unlawful if their content is irrational or their scope is beyond the law. Moreover, administrative law, with the exception of some forms of adjudication, is not concerned with agency decisions regarding internal personnel, organizational, budgetary, outsourcing, and similar administra- tive matters. All levels of … Discussion Both Congress and the Judiciary have oversight responsibilities over Executive Branch agencies. Which Branch do you believe has been the most effective in ensuring Executive agencies comply with the intent of Congress and the Courts? Please answer this question, make appropriate references to the
  • 30. readings (Rosenbloom - Chapter 6) 2-3 paragraphs, minimum 300 words.