Administrative agencies make three kinds of rules namely procedural, interpretative and legislative.
Procedural Rules govern the agency’s method of operation.
Interpretative Rules are made to clarify how the agency intends to apply the law. Such Rules may range from informal policy statements to authoritative pronouncements that bind the agency in its future course of action. These Rules are issued only after the concerned agency has considered wide cross section of view points from different segments of the public.
Agencies can make Legislative Rules which are substantive laws governing their demarcated sphere of public function, provided they are empowered to do so by the congress or the concerned state legislature , as the case may be. However, Legislative Rules must conform to the guidelines or parameters set by the legislature failing which these are liable to be struck down by the courts as unconstitutional.
The Administrative Procedure Act has set up the procedure for administrative rule making by the agencies.
The concerned agency must give advance notice before adopting a Rule in the Federal Register, which is the government’s daily publication for federal agencies. This measure is intended to enable the interested persons send their feedbacks, suggestions and inputs on the draft Rule for the consideration of the concerned authorities before finalization of the same. Eventually the Rule must be published in the Federal Register 30 days before it comes into force. The government publishes each year formally adopted Rules in the Code of Federal Regulations for the benefit of the public.