Explain the three major rulemaking models—formal, informal, and hybrid—outlined in the Administrative Procedure Act (APA) of 1946

Question

What will be an ideal response?

Answer 1

Administrative agencies follow the three major rulemaking models—formal, informal, and hybrid—outlined in the Administrative Procedure Act (APA) of 1946.
a. Formal rulemaking: Section 553(c) of the APA requires formal rulemaking when an enabling statute or other legislation states that all regulations or rules must be enacted by an agency as part of a formal hearing process that includes a complete transcript. This procedure provides for 1. an agency notice of proposed rulemaking to the public in the Federal Register; 2. a public hearing at which witnesses give testimony on the pros and cons of the proposed rule, each witness is cross-examined, and the rules of evidence are applied; and 3 . the making and publication of formal findings by the agency. On the basis of these findings, an agency may or may not promulgate a regulation. Because of the expense and time involved in creating a formal transcript and record, most enabling statutes do not require agencies to go through a formal rulemaking procedure when promulgating regulations.
b. Informal rulemaking: As provided by Section 553 of the APA, informal rulemaking applies in all situations in which the agency's enabling legislation or other congressional directives do not require another form. The APA requires that the agency 1. give prior notice of the proposed rule by publishing it in the Federal Register; 2. provide an opportunity for all interested parties to submit written comments; and 3 . publish the final rule, with a statement of its basis and purpose, in the Federal Register. Executive and independent agencies are required to set out a cost-benefit analysis in the first step of the process. Informal rulemaking is the model most often used by administrative agencies because it is efficient in terms of time and cost. No formal public hearing is required, and no formal record need be established, as in formal rulemaking. Parties opposed to a particular rule arrived at through informal rulemaking, however, often seek to persuade the appellate courts that the agency in question did not take important factors into account when the rule was being made.
c. Hybrid rulemaking: Interested parties often complained that informal rulemaking gave them little opportunity to be heard other than in writing. Both Congress and the executive branch wanted administrative agencies to do a cost–benefit analysis of proposed regulations. Out of this input, from the public and two branches of government, came hybrid rulemaking, which combines some of the aspects of formal and informal rulemaking. This model requires the agency to give notice of a proposed regulation, set a period for public comments, hold a public hearing, and have a cost–benefit analysis done by an independent executive agency.