Congress delegates its legislative powers to the federal administrative agencies. Similarly the state legislatures delegate law making authority to the state regulatory bodies. These agencies are authorized to make laws concerning their demarcated spheres of public interest such as, securities market, environment, commercial aviation, medical equipment manufacturing and so on. In turn these regulatory agencies are liable and accountable for their actions and performance to elected officials of the congress or state legislatures, as the case may be.
Article I, Section I of the US Constitution stipulates that all legislative power is vested in the congress. Initially the US Supreme Court was opposed to delegation of legislative powers to the regulatory agencies. However, gradually the US Supreme Court accepted delegation of authority to concerned regulatory bodies to make laws regulating their respective fields, provided checks and balances are in place to prevent abuse of such delegated power.
While the Supreme Court has approved of delegation of legislative power with clear guidelines to the agencies as to when and how to use such authority, it has always deprecated unguided discretion. The courts have struck down laws that confer uncontrolled discretion on the agencies as unconstitutional.
In case of delegation the courts always insist on built in procedural safeguards to prevent excesses, abuses and arbitrariness of the regulatory bodies.
Accordingly, the congress and the state legislatures try to set clear guidelines or parameters in course of delegation of law making powers to limit the scope of agency discretion.
