U.S.
Supreme Court
CHRYSLER
CORP. v. BROWN, 441 U.S. 281 (1979)
441 U.S. 281
CHRYSLER CORP.
v. BROWN, SECRETARY OF DEFENSE, ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT
No. 77-922.
Argued November 8, 1978
Decided April 18, 1979
Petitioner,
as a party to numerous Government contracts, was required to comply with
Executive Orders 11246 and 11375, which charge the Secretary of Labor with ensuring
that corporations that benefit from Government contracts provide equal
employment opportunity regardless of race or sex. Regulations promulgated by
the Department of Labor's Office of Federal Contract Compliance Programs
(OFCCP) require Government contractors to furnish reports about their
affirmative-action programs and the general composition of their work forces,
and provide that notwithstanding exemption from mandatory disclosure under the
Freedom of Information Act (FOIA), records obtained pursuant to Executive Order
11246 shall be made available for inspection if it is determined that the
requested inspection furthers the public interest and does not impede agency
functions, except in the case of records disclosure of which is prohibited by law.
After the Department of Defense's Defense Logistics Agency (DLA), the
designated compliance agency responsible for monitoring petitioner's employment
practices, informed petitioner that third parties had made an FOIA request for
disclosure of certain materials that had been furnished to the DLA by
petitioner, petitioner objected to release of the materials. The DLA determined
that the materials were subject to disclosure under the FOIA and OFCCP
disclosure rules, and petitioner then filed a complaint in the Federal District
Court seeking to enjoin release of the documents. Petitioner contended, inter
alia, that disclosure was barred by the FOIA and was inconsistent with the
Trade Secrets Act, 18 U.S.C. 1905, which imposes criminal sanctions on
Government employees who disclose or make known, in any manner or to any extent
"not authorized by law," certain classes of information submitted to
a Government agency, including trade secrets and confidential statistical data.
Finding jurisdiction to subject the disclosure decision to review under the
Administrative Procedure Act (APA), the District Court held that certain of the
requested information fell within Exemption 4 of the FOIA, relating to trade
secrets and commercial or financial information; that whether the requested
information may or must be withheld thus [441
U.S. 281, 282] depended on
applicable agency regulations; and that here a regulation (29 CFR 70.21 (a)
(1977) which states that no officer or employee of the Department of Labor is
to violate 18 U.S.C. 1905, and which proscribes specified disclosures if
"not authorized by law," required that the information be withheld.
Both sides appealed, and the Court of Appeals vacated the District Court's
judgment. While agreeing with the District Court that the FOIA does not compel
withholding of information that falls within its exemptions, and that analysis
must proceed under the APA, the Court of Appeals reached a different conclusion
as to the interpretation of 29 CFR 70.21 (a). In the Court of Appeals' view,
disclosures made pursuant to OFCCP disclosure regulations are "authorized
by law" by virtue of those regulations.
Held:
1.
The FOIA is exclusively a disclosure statute and affords petitioner no private
right of action to enjoin agency disclosure. The language, logic, and history
of the FOIA show that its provisions exempting specified material from
disclosure were only meant to permit the agency to withhold certain
information, and were not meant to mandate non-disclosure. Congressional
concern was with the agency's need or preference for confidentiality; the FOIA
by itself protects the interest in confidentiality of private entities
submitting information only to the extent that this interest is endorsed by the
agency collecting the information. Pp. 290-294.
2.
The type of disclosure threatened in this case is not "authorized by
law" within the meaning of the Trade Secrets Act on the theory that the
OFCCP regulations relied on by DLA were the source of that authorization. Pp.
295-316.
(a)
The Act addresses formal agency action as well as acts of individual Government
employees, and there is nothing in its legislative history to show that
Congress intended the phrase "authorized by law" to have a special,
limited meaning different from the traditional understanding that properly
promulgated, substantive agency regulations have the "force and effect of
law." In order for a regulation to have the "force and effect of
law," it must be a "substantive" or "legislative-type"
rule affecting individual rights and obligations (as do the regulations in the
case at bar), and it must be the product of a congressional grant of
legislative authority, promulgated in conformity with any procedural
requirements imposed by Congress. Pp. 295-303.
(b)
The disclosure regulations at issue in this case cannot be based on 201 of
Executive Order 11246, as amended, and a regulation which permits units in the
Department of Labor to promulgate supplemental [441 U.S. 281, 283]
disclosure regulations consistent with the FOIA. Since materials that
are exempt from disclosure under the FOIA are outside the ambit of that Act,
the Government cannot rely on the FOIA as congressional authorization for
disclosure regulations that permit the release of information within the Act's exemptions.
In order for regulations adopted under 201 of Executive Order 11246 - which
speaks in terms of rules and regulations "necessary and appropriate"
to achieve the Executive Order's purposes of ending discrimination by the
Federal Government and those who deal with it - to have the "force and
effect of law," there must be a nexus between the regulations and some
delegation of the requisite legislative authority by Congress. When Congress
enacted statutes which arguably authorized the Executive Order (the Federal
Property and Administration Services Act of 1949, Titles VI and VII of the
Civil Rights Act of 1964, and the Equal Employment Opportunity Act of 1972), it
was not concerned with public disclosure of trade secrets or confidential
business information, and it is not possible to find in these statutes a
delegation of the disclosure authority asserted by the Government here. Also,
one cannot readily pull from the logic and purposes of the Executive Order any
concern with the public's access to information in Government files or the
importance of protecting trade secrets or confidential business statistics. Pp.
303-308.
(c)
Legislative authority for the OFCCP disclosure regulations cannot be found in 5
U.S.C. 301, which authorizes heads of Government departments to prescribe
regulations to govern internal departmental affairs and the custody and use of
its records, and which provides that it does not authorize withholding
information from the public or limiting the availability of records to the public.
Section 301 is a "housekeeping statute," authorizing rules of agency
organization, procedure, or practice as opposed to "substantive
rules." There is nothing in the legislative history to indicate that 301
is a substantive grant of legislative power to promulgate rules authorizing the
release of trade secrets or confidential business information. Thus, 301 does not authorize regulations limiting the scope of the
Trade Secrets Act. Pp. 308-312.
(d)
There is also a procedural defect in the OFCCP disclosure regulations that
precludes courts from affording them the force and effect of law, since they
were promulgated as "interpretative rules" without complying with the
APA's requirement that interested persons be given general notice of an agency's
proposed rulemaking and an opportunity to comment before a "substantive
rule" is promulgated. An "interpretative regulation" cannot be
the "authoriz[ation] by law" required by
the Trade Secrets Act. Pp. 312-316. [441
U.S. 281, 284]
3.
However, the Trade Secrets Act does not afford a private right of action to
enjoin disclosure in violation of the statute. Where this
Court has implied a private right of action under a criminal statute
"there was at least a statutory basis for inferring that a civil cause of
action of some sort lay in favor of someone." Cort
v. Ash, 422
U.S. 66, 79 . Nothing in the Trade Secrets Act
prompts such an inference; nor is there any indication of legislative intent to
create a private right of action. Most importantly, a private right of action
under the Act is not necessary to make effective the congressional purpose,
since review of DLA's decision to disclose petitioner's employment data is
available under the APA. Pp. 316-317.
4.
Since the Trade Secrets Act and any "authoriz[ation] by law" contemplated
by that Act place substantive limits on agency action, DLA's decision to
disclose petitioner's reports is reviewable agency action and petitioner is a
person "adversely affected or aggrieved" within the meaning of the
APA's provision affording the right of judicial review of agency action to such
a person. Because the Court of Appeals did not reach the issue whether disclosure
of petitioner's documents was barred by the Trade Secrets Act, the case is
remanded in order that the Court of Appeals may consider whether the
contemplated disclosures would violate the Act. Pp. 317-319.
565
F.2d 1172, vacated and remanded.
REHNQUIST,
J., delivered the opinion for a unanimous Court. MARSHALL, J., filed a
concurring opinion, post, p. 319.
Burt
A. Braverman argued the cause for petitioner. With
him on the briefs was A. William Rolf.
Assistant
Attorney General Babcock argued the cause for respondents. With her on the
brief were Solicitor General McCree, Leonard Schaitman, and Paul Blankenstein.
*
[ Footnote * ]
Briefs of amici curiae urging reversal were filed by
Paul L. Gomory for the Association for the
Advancement of Invention and Innovation; by Joseph A. Keyes, Jr., for the Association
of American Medical Colleges; by Robert L. Ackerly,
Thomas L. Pattern, Kenneth W. Weinstein, Lawrence B. Kraus, and Stanley T. Kaleczyc for the Chamber of Commerce of the United States;
by Michael S. Horne, Bruce D. Sokler, Stephen R. Mysliwiec, Robert E. Williams, and Douglas S. McDowell for
the Equal [441 U.S. 281, 285] Employment
Advisory Council; and by Leonard J. Theberge and
Edward H. Dowd for the Scientists and Engineers for Secure Energy et al.
Charles
E. Hill filed a brief for the Consumer Federation of America et al. as amici curiae urging affirmance.
Briefs
of amici
curiae were filed by Thomas L. Pfister for Hughes
Aircraft Co.; by Richmond C. Coburn and Thomas E. Douglass for the National
Security Industrial Ass.; and by George A. Sears and C. Douglas Floyd for
Standard Oil Co. of California. [441 U.S. 281, 285]
MR.
JUSTICE REHNQUIST delivered the opinion of the Court.
The
expanding range of federal regulatory activity and growth in the Government
sector of the economy have increased federal agencies' demands for information
about the activities of private individuals and corporations. These
developments have paralleled a related concern about secrecy in Government and
abuse of power. The Freedom of Information Act (hereinafter FOIA) was a
response to this concern, but it has also had a largely unforeseen tendency to
exacerbate the uneasiness of those who comply with governmental demands for
information. For under the FOIA third parties have been able to obtain
Government files containing information submitted by corporations and
individuals who thought that the information would be held in confidence.
This
case belongs to a class that has been popularly denominated
"reverse-FOIA" suits. The Chrysler Corp. (hereinafter Chrysler) seeks
to enjoin agency disclosure on the grounds that it is inconsistent with the
FOIA and 18 U.S.C. 1905, a criminal statute with origins in the 19th century
that proscribes disclosure of certain classes of business and personal
information. We agree with the Court of Appeals for the Third Circuit that the
FOIA is purely a disclosure statute and affords Chrysler no private right of
action to enjoin agency disclosure. But we cannot agree with that court's
conclusion that this disclosure is "authorized by law" within the
meaning of 1905. Therefore, we vacate the Court of Appeals' judgment and remand
so that it can consider [441 U.S. 281,
286] whether the documents
at issue in this case fall within the terms of 1905.
I
As
a party to numerous Government contracts, Chrysler is required to comply with
Executive Orders 11246 and 11375, which charge the Secretary of Labor's with
ensuring that corporations that benefit from Government contracts provide equal
employment opportunity regardless of race or sex. 1 The United States Department of Labor's Office
of Federal Contract Compliance Programs (OFCCP) has promulgated regulations
which require Government contractors to furnish reports and other information
about their affirmative-action programs and the general composition of their
work forces. 2
The
Defense Logistics Agency (DLA) (formerly the Defense Supply Agency) of the
Department of Defense is the designated compliance agency responsible for
monitoring Chrysler's employment practices. 3 OFCCP regulations require that Chrysler make
available to this agency written affirmative-action programs (AAP's) and
annually submit Employer Information Reports, known as EEO-1 Reports. The
agency may also conduct "compliance reviews" and "complaint
investigations," which culminate in Compliance Review Reports (CRR's) and
Complaint Investigation Reports (CIR's), respectively. 4 [441 U.S.
281, 287]
Regulations
promulgated by the Secretary of Labor provide for public disclosure of
information from records of the OFCCP and its compliance agencies. Those
regulations state that notwithstanding exemption from mandatory disclosure
under the FOIA, 5 U.S.C. 552,
"records
obtained or generated pursuant to Executive Order 11246 (as amended) . . .
shall be made available for inspection and copying . . . if it is determined
that the requested inspection or copying furthers the public interest and does
not impede any of the functions of the OFCC[P] or the
Compliance Agencies except in the case of records disclosure of which is
prohibited by law." 5
It
is the voluntary disclosure contemplated by this regulation, over and above
that mandated by the FOIA, which is the gravamen of Chrysler's complaint in
this case.
This
controversy began on May 14, 1975, when the DLA informed Chrysler that third
parties had made an FOIA request for disclosure of the 1974 AAP for Chrysler's
Newark, Del., assembly plant and an October 1974 CIR for the same facility.
Nine days later, Chrysler objected to release of the requested information,
relying on OFCCP's disclosure regulations and on exemptions to the FOIA.
Chrysler also requested a copy of the CIR, since it had never seen it. DLA
responded the following week that it had determined that the requested material
was subject to disclosure under the FOIA and the OFCCP disclosure rules, and
that both documents would be released five days later.
On
the day the documents were to be released, Chrysler filed a complaint in the
United States District Court for Delaware [441
U.S. 281, 288] seeking to
enjoin release of the Newark documents. The District Court granted a temporary
restraining order barring disclosure of the Newark documents and requiring that
DLA give five days' notice to Chrysler before releasing any similar documents.
Pursuant to this order, Chrysler was informed on July 1, 1975, that DLA had
received a similar request for information about Chrysler's Hamtramck, Mich.,
plant. Chrysler amended its complaint and obtained a restraining order with
regard to the Hamtramck, disclosure as well.
Chrysler
made three arguments in support of its prayer for an injunction: that
disclosure was barred by the FOIA; that it was inconsistent with 18 U.S.C.
1905, 42 U.S.C. 2000e-8 (e), and 44 U.S.C. 3508, which for ease of reference
will be referred to as the "confidentiality statutes"; and finally
that disclosure was an abuse of agency discretion insofar as it conflicted with
OFCCP rules. The District Court held that it had jurisdiction under 28 U.S.C.
1331 to subject the disclosure decision to review under the Administrative
Procedure Act (APA). 5 U.S.C. 701-706. It conducted a trial de novo on all of
Chrysler's claims; both sides presented extensive expert testimony during
August 1975.
On
April 20, 1976, the District Court issued its opinion. It held that certain of
the requested information, the "manning" tables, fell within
Exemption 4 of the FOIA. 6
The
District Court reasoned from this holding that the tables may or must be
withheld, depending on applicable agency regulations, and that here a governing
regulation required that the information be withheld. Pursuant to 5 U.S.C. 301,
the enabling statute which gives federal department heads control over
department records, the Secretary of Labor has promulgated a regulation, 29 CFR
70.21 (a) (1978), stating that no officer or employee of the Department is to
violate 18 U.S.C. 1905. That section imposes criminal sanctions on Government
employees [441 U.S. 281, 289] who make unauthorized disclosure of certain
classes of information submitted to a Government agency, including trade
secrets and confidential statistical data. In essence, the District Court read
1905 as not merely a prohibition of unauthorized disclosure of sensitive
information by Government employees, but as a restriction on official agency
actions taken pursuant to promulgated regulations.
Both
sides appealed, and the Court of Appeals for the Third Circuit vacated the
District Court's judgment. Chrysler Corp. v. Schlesinger, 565
F.2d 1172 (1977). It agreed with the District Court that the FOIA does
not compel withholding of information that falls within its nine exemptions. It
also, like the District Court, rejected Chrysler's reliance on the
confidentiality statutes, either because there was no implied private right of
action to proceed under the statute, or because the statute, by its terms, was
not applicable to the information at issue in this case. It agreed with the
District Court that analysis must proceed under the APA. But it disagreed with
that court's interpretation of 29 CFR 70.21 (a). By the terms of that
regulation, the specified disclosures are only proscribed if "not
authorized by law," the standard of 18 U.S.C. 1905. In the Court of
Appeals' view, disclosures made pursuant to OFCCP disclosure regulations are
"authorized by law" by virtue of those regulations. Therefore, it
held that 29 CFR 70.21 (a) was inapplicable.
The
Court of Appeals also disagreed with the District Court's view of the scope of
review under the APA. It held that the District Court erred in conducting a de
novo review; review should have been limited to the agency record. However, the
Court of Appeals found that record inadequate in this case and directed that
the District Court remand to the agency for supplementation. Because of a
conflict in the Circuits 7
and
the general importance of these "reverse-FOIA" [441 U.S. 281, 290] cases, we granted
certiorari, 435 U.S. 914 , and now vacate
the judgment of the Third Circuit and remand for further proceedings.
II
We
have decided a number of FOIA cases in the last few years. 8
Although
we have not had to face squarely the question whether the FOIA ex proprio vigore forbids
governmental agencies from disclosing certain classes of information to the
public, we have in the course of at least one opinion intimated an answer. 9
We
have, moreover, consistently recognized that the basic objective of the Act is
disclosure. 10
[441 U.S. 281, 291]
In contending that the FOIA bars disclosure of the
requested equal employment opportunity information, Chrysler relies on the
Act's nine exemptions and argues that they require an agency to withhold
exempted material.
In this case it relies specifically on Exemption 4:
"(b)
[FOIA] does not apply to matters that are -
.
. . . .
"(4)
trade secrets and commercial or financial information
obtained from a person and privileged or confidential . . . ." 5 U.S.C. 552 (b) (4).
Chrysler
contends that the nine exemptions in general, and
Exemption 4 in particular, reflect a sensitivity to the privacy interests of
private individuals and nongovernmental entities. That contention may be
conceded without inexorably requiring the conclusion that the exemptions impose
affirmative duties on an agency to withhold information sought. 11
In
fact, that conclusion is not supported by the language, logic, or history of
the Act.
The
organization of the Act is straightforward. Subsection [441 U.S. 281, 292]
(a), 5 U.S.C. 552 (a), places a general obligation on the agency to make
information available to the public and sets out specific modes of disclosure
for certain classes of information. Subsection (b), 5 U.S.C. 552 (b), which
lists the exemptions, simply states that the specified material is not subject
to the disclosure obligations set out in subsection (a). By its terms,
subsection (b) demarcates the agency's obligation to disclose; it does not
foreclose disclosure.
That
the FOIA is exclusively a disclosure statute is, perhaps, demonstrated most
convincingly by examining its provision for judicial relief. Subsection (a) (4)
(B) gives federal district courts "jurisdiction to enjoin the agency from
withholding agency records and to order the production of any agency records
improperly withheld from the complainant." 5 U.S.C. 552
(a) (4) (B). That provision does not give the authority to bar
disclosure, and thus fortifies our belief that Chrysler, and courts which have
shared its view, have incorrectly interpreted the exemption provisions of the
FOIA. The Act is an attempt to meet the demand for open government while
preserving workable confidentiality in governmental decision-making. 12
Congress
appreciated that, with the expanding sphere of governmental regulation and
enterprise, much of the information within Government files has been submitted
by private entities seeking Government contracts or responding to unconditional
reporting obligations imposed by law. There was sentiment that Government
agencies should have the latitude, in certain circumstances, to afford the
confidentiality desired by these submitters. 13
But
the congressional concern [441 U.S.
281, 293] was with the agency's
need or preference for confidentiality; the FOIA by itself protects the
submitters' interest in confidentiality only to the extent that this interest
is endorsed by the agency collecting the information.
Enlarged
access to governmental information undoubtedly cuts against the privacy
concerns of nongovernmental entities, and as a matter of policy some balancing
and accommodation may well be desirable. We simply hold here that Congress did
not design the FOIA exemptions to be mandatory bars to disclosure. 14
This
conclusion is further supported by the legislative history. The FOIA was
enacted out of dissatisfaction with 3 of the APA, which had not resulted in as
much disclosure by the agencies as Congress later thought desirable. 15
Statements
in both the Senate and House Reports on the effect of the exemptions support
the interpretation that the exemptions [441
U.S. 281, 294] were only
meant to permit the agency to withhold certain information, and were not meant
to mandate nondisclosure. For example, the House Report states:
"[The
FOIA] sets up workable standards for the categories of records which may be
exempt from public disclosure . . . ."
".
. . There may be legitimate reasons for nondisclosure and [the FOIA] is
designed to permit nondisclosure in such cases."
"[The
FOIA] lists in a later subsection the specific categories of information which
may be exempted from disclosure." 16
We
therefore conclude that Congress did not limit an agency's discretion to
disclose information when it enacted the FOIA. It necessarily follows that the
Act does not afford Chrysler any right to enjoin agency disclosure.
III
Chrysler
contends, however, that even if its suit for injunctive relief cannot be based
on the FOIA, such an action can be premised on the Trade Secrets Act, 18 U.S.C.
1905. The Act provides:
"Whoever,
being an officer or employee of the United States or of any department or agency
thereof, publishes, divulges, discloses, or makes known in any manner or to any
extent not authorized by law any information coming to him in the course of his
employment or official duties or by reason of any examination or investigation
made by, or return, report or record made to or filed with, such [441 U.S. 281, 295]
department or agency or officer or employee thereof which information
concerns or relates to the trade secrets, processes, operations, style of work,
or apparatus, or to the identity, confidential statistical data, amount or
source of any income, profits, losses, or expenditures of any person, firm,
partnership, corporation, or association; or permits any income return or copy
thereof or any book containing any abstract or particulars thereof to be seen
or examined by any person except as provided by law; shall be fined not more
than $1,000, or imprisoned not more than one year, or both; and shall be
removed from office or employment."
There
are necessarily two parts to Chrysler's argument: that 1905 is applicable to
the type of disclosure threatened in this case, and that it affords Chrysler a
private right of action to obtain injunctive relief.
A
The
Court of Appeals held that 1905 was not applicable to the agency disclosure at
issue here because such disclosure was "authorized by law" within the
meaning of the Act. The court found the source of that authorization to be the
OFCCP regulations that DLA relied on in deciding to disclose information on the
Hamtramck and Newark plants. 17
Chrysler
contends here that these agency regulations are not "law" within the
meaning of 1905.
It
has been established in a variety of contexts that properly promulgated,
substantive agency regulations have the "force and effect of law." 18
This doctrine is so
well established that agency regulations implementing federal statutes have
been [441 U.S. 281, 296] held to pre-empt state law under the
Supremacy Clause. 19
It
would therefore take a clear showing of contrary; legislative intent before the
phrase "authorized by law" in 1905 could be held to have a narrower
ambit than the traditional understanding.
The
origins of the Trade Secrets Act can be traced to Rev. Stat. 3167, an Act which
barred unauthorized disclosure of specified business information by Government
revenue officers. There is very little legislative history concerning the
original bill, which was passed in 1864. 20
It
was re-enacted numerous times, with some modification, and remained part of the
revenue laws until 1948. 21
Congressional
statements made at the time of these re-enactments indicate that Congress was
primarily concerned with unauthorized disclosure of business information by
feckless or corrupt revenue agents, 22
for
[441 U.S. 281, 297] in the early days
of the Bureau of Internal Revenue, it was the field agents who had substantial
contact with confidential financial information. 23
In
1948, Rev. Stat. 3167 was consolidated with two other statutes - involving the
Tariff Commission and the Department of Commerce - to form the Trade Secrets
Act. 24
The
statute governing the Tariff Commission was very similar to Rev. Stat. 3167,
and it explicitly bound members of the Commission as well as Commission
employees. 25
The
Commerce [441 U.S. 281, 298] Department
statute embodied some differences in form. It was a mandate addressed to the
Bureau of Foreign and Domestic Commerce and to its Director, but there was no
reference to Bureau employees and it contained no criminal sanctions. 26
Unlike
the other statutes, it also had no exception for disclosures "authorized
by law." In its effort to "consolidat[e]"
the three statutes, Congress enacted 1905 and the essentially borrowed the from of Rev. Stat. 3167 and the Tariff Commission
statute. 27
We
find nothing in the legislative history of 1905 and its predecessors which
lends support to Chrysler's contention that Congress intended the phrase
"authorized by law," as used in 1905, to have a special, limited
meaning.
Nor
do we find anything in the legislative history to support the respondents'
suggestion that 1905 does not address formal agency action - i. e., that it is essentially an "antileak"
statute that does not bind the heads of governmental departments or agencies.
That would require an expansive and unprecedented holding that any agency
action directed or approved by an agency head is "authorized by law,"
regardless [441 U.S. 281, 299] of the statutory authority for that action.
As Attorney General Brownell recognized not long after 1905 was enacted, such a
reading is difficult to reconcile with Congress' intent to consolidate the
Tariff Commission and Commerce Department statutes, both of which explicitly
addressed ranking officials, with Rev. Stat. 3167. 28
It
is also inconsistent with a settled understanding - previously shared by the
Department of Justice - that has been continually articulated and relied upon
in Congress during the legislative efforts in the last three decades to
increase public access to Government information. 29
Although
the existence of this understanding [441 U.S. 281,
300] is not by any means dispositive, it does shed some light on
the intent of the enacting Congress. See Red Lion
Broadcasting Co. v. FCC, 395 U.S. 367, 380 -381
(1969); FHA [441 U.S. 281, 301] v.
The Darlington, Inc., 358 U.S. 84, 90 (1958).
In sum, we conclude that 1905 does address formal agency action and that the
appropriate inquiry is whether OFCCP's regulations provide the "authoriz[ation] by law" required by the statute.
In
order for a regulation to have the "force and effect of law," it must
have certain substantive characteristics and be the product of certain
procedural requisites. The central distinction among agency regulations found
in the APA is that between "substantive rules" on the one hand and
"interpretive rules, general statements of policy, or rules of agency
organization, procedure, or practice" on the other. 30
A
"substantive [441 U.S. 281, 302] rule" is not defined in the APA, and
other authoritative sources essentially offer definitions by negative
inference. 31
But
in Morton v. Ruiz, 415 U.S. 199 (1974), we noted
a characteristic inherent in the concept of a "substantive rule." We
described a substantive rule - or a "legislative-type rule," id., at
236 - as one "affecting individual rights and obligations." Id., at 232. This characteristic is an important touchstone
for distinguishing those rules that may be "binding" or have the
"force of law." Id., at 235, 236.
That
an agency regulation is "substantive," however, does not by itself
give it the "force and effect of law." The legislative power of the
United States is vested in the Congress, and the exercise of quasi-legislative
authority by governmental departments and agencies must be rooted in a grant of
such power by the Congress and subject to limitations which that body imposes.
As this Court noted in Batterton v. Francis, 432 U.S. 416, 425 n. 9 (1977):
"Legislative,
or substantive, regulations are `issued by an agency pursuant to statutory
authority and . . . implement [441 U.S.
281, 303] the statute, as,
for example, the proxy rules issued by the Securities and Exchange Commission .
. . . Such rules have the force and effect of law.'" 32
Likewise
the promulgation of these regulations must conform with
any procedural requirements imposed by Congress. Morton v.
Ruiz, supra, at 232. For agency discretion is limited not only by
substantive, statutory grants of authority, but also by the procedural
requirements which "assure fairness and mature consideration of rules of
general application." NLRB v. Wyman-Gordon Co., 394 U.S. 759, 764 (1969).
The pertinent procedural limitations in this case are those found in the APA.
The
regulations relied on by the respondents in this case as providing "authoriz[ation] by law"
within the meaning of 1905 certainly affect individual rights and obligations;
they govern the public's right to information in records obtained under
Executive Order 11246 and the confidentiality rights of those who submit
information to OFCCP and its compliance agencies. It is a much closer question,
however, whether they are the product of a congressional grant of legislative
authority.
In
his published memorandum setting forth the disclosure regulations at issue in
this case, the Secretary of Labor states that the authority upon which he
relies in promulgating the regulations are 201 of Executive Order 11246, as
amended, and 29 CFR 70.71 (1978), which permits units in the Department of
Labor to promulgate supplemental disclosure regulations consistent with 29 CFR
pt. 70 and the FOIA. 38 Fed. Reg.
3192-3194 (1973). Since materials that are exempt from disclosure under
the FOIA are by virtue of Part II of this opinion outside the ambit of that
Act, the Government cannot rely on the FOIA as congressional authorization for [441 U.S. 281, 304] disclosure regulations that permit the
release of information within the Act's nine exemptions.
Section
201 of Executive Order 11246 directs the Secretary of Labor to "adopt such
rules and regulations and issue such orders as he deems necessary and
appropriate to achieve the purposes thereof." But in order for such
regulations to have the "force and effect of law," it is necessary to
establish a nexus between the regulations and some delegation of the requisite
legislative authority by Congress. The origins of the congressional authority
for Executive Order 11246 are somewhat obscure and have been roundly debated by
commentators and courts. 33
The
Order itself as amended establishes a program to eliminate employment
discrimination by the Federal Government and by those who benefit from
Government contracts. For purposes of this case, it is not necessary to decide
whether Executive Order 11246 as amended is authorized by the Federal Property
and Administrative Services Act of 1949, 34
Titles
VI [441 U.S. 281, 305] and VII of the
Civil Rights Act of 1964, 35
the
Equal Employment Opportunity Act of 1972, 36
or
some more general notion that the Executive can impose reasonable contractual
requirements [441 U.S. 281, 306] in
the exercise of its procurement authority. 37
The
pertinent inquiry is whether under any of the arguable statutory grants of
authority the OFCCP disclosure regulations relied on by the respondents are
reasonably within the contemplation of that grant of authority. We think that
it is clear that when it enacted these statutes, Congress was not concerned
with public disclosure of trade secrets or confidential business information,
and, unless we were to hold that any federal statute that implies some
authority to collect information must grant legislative authority to disclose
that information to the public, it is simply not possible to find in these
statutes a delegation of the disclosure authority asserted by the respondents
here. 38
[441 U.S. 281, 307]
The
relationship between any grant of legislative authority and the disclosure
regulations becomes more remote when one examines 201 of the Executive Order.
It speaks in terms of rules and regulations "necessary and
appropriate" to achieve the purposes of the Executive Order. Those
purposes are an end to discrimination in employment by the Federal Government
and those who deal with the Federal Government. One cannot readily pull from
the logic and purposes of the Executive Order any concern with the public's
access to information in Government files or the importance of protecting trade
secrets or confidential business statistics.
The
"purpose and scope" section of the disclosure regulations indicates
two underlying rationales: OFCCP's general policy "to disclose information
to the public," and its policy "to cooperate with other public
agencies as well as private parties seeking to eliminate discrimination in
employment." 41 CFR 60-40.1 (1978). The
respondents argue that "[t]he purpose of the Executive Order is to combat
discrimination in employment, and a disclosure policy designed to further this
purpose is consistent with the Executive Order and an appropriate subject for
regulation under its aegis." Brief for Respondents 48.
Were a grant of legislative authority as a basis for Executive Order 11246 more
clearly identifiable, we might agree with the respondents that this
"compatibility" gives the disclosure regulations the necessary
legislative force. But the thread between these regulations and any grant of [441 U.S. 281, 308] authority by the Congress is so strained
that it would do violence to established principles of separation of powers to
denominate these particular regulations "legislative" and credit them
with the "binding effect of law."
This
is not to say that any grant of legislative authority to a federal agency by Congress
must be specific before regulations promulgated pursuant to it can be binding
on courts in a manner akin to statutes. What is important is that the reviewing
court reasonably be able to conclude that the grant of authority contemplates
the regulations issued. Possibly the best illustration remains Mr. Justice
Frankfurter's opinion for the Court in National Broadcasting Co. v. United
States, 319 U.S. 190 (1943). There
the Court rejected the argument that the Communications Act of 1934 did not
give the Federal Communications Commission authority to issue regulations
governing chain broadcasting beyond the specification of technical, engineering
requirements. Before reaching that conclusion, however, the Court probed the
language and logic of the Communications Act and its legislative history. Only
after this careful parsing of authority did the Court find that the regulations
had the force of law and were binding on the courts unless they were arbitrary
or not promulgated pursuant to prescribed procedures.
"Our
duty is at an end when we find that the action of the Commission was based upon
findings supported by evidence, and was made pursuant to authority granted by
Congress. It is not for us to say that the `public interest' will be furthered
or retarded by the Chain Broadcasting Regulations. The responsibility belongs
to the Congress for the grant of valid legislative authority and to the
Commission for its exercise." Id., at 224.
The
respondents argue, however, that even if these regulations do not have the
force of law by virtue of Executive Order 11246, an explicit grant of
legislative authority for such [441
U.S. 281, 309] regulations
can be found in 5 U.S.C. 301, commonly referred to as the "housekeeping
statute." 39
It
provides:
"The
head of an Executive department or military department may prescribe
regulations for the government of his department, the conduct of its employees,
the distribution and performance of its business, and the custody, use, and
preservation of its records, papers, and property. This section does not
authorize withholding information from the public or limiting the availability
of records to the public."
The
antecedents of 301 go back to the beginning of the Republic, when statutes were
enacted to give heads of early Government departments
authority to govern internal departmental affairs. Those laws were consolidated
into one statute in 1874 and the current version of the statute was enacted in
1958.
Given
this long and relatively uncontroversial history, and the terms of the statute
itself, it seems to be simply a grant of authority to the agency to regulate
its own affairs. What is clear from the legislative history of the 1958
amendment to 301 is that this section was not intended to provide authority for
limiting the scope of 1905. 40
[441 U.S. 281, 310]
The
1958 amendment to 301 was the product of congressional concern that agencies
were invoking 301 as a source of authority to withhold information from the
public. Congressman Moss sponsored an amendment that added the last sentence to
301, which specifically states that this section "does not authorize
withholding information from the public." The Senate Report accompanying
the amendment stated:
"Nothing
in the legislative history of [ 301] shows that
Congress intended this statute to be a grant of authority to the heads of the
executive departments to withhold information from the public or to limit the
availability of records to the public." S. Rep. No. 1621, 85th Cong., 2d
Sess., 2 (1958).
The
logical corollary to this observation is that there is nothing in the
legislative history of 301 to indicate it is a substantive grant of legislative
power to promulgate rules authorizing the release of trade secrets or
confidential business information. It is indeed a "housekeeping
statute," authorizing what the APA terms "rules of agency
organization, procedure or practice" as opposed to "substantive
rules." 41
[441 U.S. 281, 311]
This
would suggest that regulations pursuant to 301 could not provide the "authoriz[ation] by law" required by 1905. But there is more
specific support for this position. During the debates on the 1958 amendment
Congressman Moss assured the House that the amendment would "not affect
the confidential status of information given to the Government and carefully
detailed in title 18, United States Code, section 1905." 104 Cong. Rec. 6550 (1958).
The
respondents argue that this last statement is of little significance, because
it is only made with reference to the amendment. But that robs Congressman
Moss' statement of any substantive import. If Congressman Moss thought that
records within the terms of 1905 could be released on the authority of a 301
regulation, why was he (and presumably the House) concerned with whether the
amendment affected 1905? Under the respondents' interpretation, records
released pursuant to 301 are outside 1905 by virtue of the first sentence of
301.
The
remarks of a single legislator, even the sponsor, are not controlling in
analyzing legislative history. Congressman Moss' statement must be considered
with the Reports of both Houses and the statements of other Congressmen, all of
which refute the respondents' interpretation of the relationship between 301
and 1905. 42
Of
greatest significance, however, [441 U.S. 281, 312]
is the "housekeeping" nature of 301
itself. On the basis of this evidence of legislative intent, we agree
with the Court of Appeals for the District of Columbia Circuit that "[s]ection 301 does not authorize regulations limiting the
scope of section 1905." Charles River Park "A," Inc. v.
Department of HUD, 171 U.S. App. D.C. 286, 293-294, 519 F.2d 935, 942-943
(1975).
There
is also a procedural defect in the OFCCP disclosure regulations which precludes
courts from affording them the force and effect of law. That defect is a lack
of strict compliance with the APA. Recently we have had occasion to examine the
requirements of the APA in the context of "legislative" or
"substantive" rulemaking. In Vermont Yankee Nuclear Power Corp. v.
Natural Resources Defense Council, Inc., 435 U.S. 519 (1978), we held
that courts could only in "extraordinary circumstances" impose
procedural requirements on an agency beyond those specified in the APA. It is
within [441 U.S. 281, 313] an
agency's discretion to afford parties more procedure, but it is not the
province of the courts to do so. In Vermont Yankee, we recognized that the APA
is "`a formula upon which opposing social and political forces have come
to rest.'" Id., at 547 (quoting Wong Yang Sung v. McGrath, 339 U.S. 33, 40 (1950)). Courts
upset that balance when they override informed choice of procedures and impose
obligations not required by the APA. By the same token, courts are charged with
maintaining the balance: ensuring that agencies comply with the "outline of
minimum essential rights and procedures" set out in the APA. H. R. Rep.
No. 1980, 79th Cong., 2d Sess., 16 (1946); see Vermont Yankee Nuclear Power
Corp., supra, at 549 n. 21. Certainly regulations subject to the APA cannot be
afforded the "force and effect of law" if not promulgated pursuant to
the statutory procedural minimum found in that Act. 43
Section
4 of the APA, 5 U.S.C. 553, specifies that an agency shall afford interested
persons general notice of proposed rulemaking and an opportunity to comment
before a substantive rule is promulgated. 44
"Interpretive
rules, general [441 U.S. 281, 314] statements
of policy or rules of agency organization, procedure or practice" are
exempt from these requirements. When the Secretary of Labor published the
regulations pertinent in this case, he stated:
"As
the changes made by this document relate solely to interpretive rules, general
statements of policy, and to rules of agency procedure and practice, neither
notice of proposed rule making nor public participation therein is required by
5 U.S.C. 553. Since the changes made by this document either relieve
restrictions or are interpretative rules, no delay in effective date is
required by [441 U.S. 281, 315] 5 U.S.C. 553 (d). These rules shall
therefore be effective immediately.
"In
accordance with the spirit of the public policy set forth in 5 U.S.C. 553,
interested persons may submit written comments, suggestions, data, or arguments
to the Director, Office of Federal Contract Compliance . . . ." 38 Fed. Reg. 3193 (1973).
Thus,
the regulations were essentially treated as interpretative rules and interested
parties were not afforded the notice of proposed rulemaking required for
substantive rules under 5 U.S.C. 553 (b). As we observed in Batterton
v. Francis, 432 U.S., at 425 n. 9: "[A]
court is not required to give effect to an interpretative regulation. Varying
degrees of deference are accorded to administrative interpretations, based on
such factors as the timing and consistency of the agency's position, and the
nature of its expertise." We need not decide whether these regulations are
properly characterized as "interpretative rules." It is enough that
such regulations are not properly promulgated as substantive rules, and
therefore not the product of procedures which Congress prescribed as necessary
prerequisites to giving a regulation the binding effect of law. 45
An
interpretative regulation or general statement [441
U.S. 281, 316] of agency policy cannot be the "authoriz[ation] by law" required by 1905.
This
disposition best comports with both the purposes underlying the APA and sound
administrative practice. Here important interests are in conflict: the public's
access to information in the Government's files and concerns about personal
privacy and business confidentiality. The OFCCP's regulations attempt to strike
a balance. In enacting the APA, Congress made a judgment that notions of
fairness and informed administrative decisionmaking
require that agency decisions be made only after affording interested persons
notice and an opportunity to comment. With the consideration that is the
necessary and intended consequence of such procedures, OFCCP might have decided
that a different accommodation was more appropriate.
B
We
reject, however, Chrysler's contention that the Trade Secrets Act affords a
private right of action to enjoin disclosure in violation of the statute. In Cort v. Ash, 422 U.S. 66 (1975), we noted
that this Court has rarely implied a private right of action under a criminal
statute, and where it has done so "there was at least a statutory basis
for inferring that a civil cause of action of some sort lay in favor of
someone." 46
Nothing
in 1905 prompts such an inference. Nor are other pertinent circumstances
outlined in Cort present here. As our review of the
legislative history of 1905 - or [441
U.S. 281, 317] lack of
same - might suggest, there is no indication of legislative intent to create a
private right of action. Most importantly, a private right of action under 1905
is not "necessary to make effective the congressional purpose," J. I.
Case Co. v. Borak, 377 U.S. 426, 433 (1964), for we
find that review of DLA's decision to disclose Chrysler's employment data is
available under the APA. 47
IV
While
Chrysler may not avail itself of any violations of the provisions of 1905 in a
separate cause of action, any such violations may have a dispositive effect on
the outcome of judicial review of agency action pursuant to 10 of the APA.
Section 10 (a) of the APA provides that "[a] person suffering legal wrong
because of agency action, or adversely affected or aggrieved by agency action .
. ., is entitled to judicial review thereof." 5 U.S.C.
702. Two exceptions to this general rule of reviewability are set out in
10. Review is not available where "statutes preclude judicial review"
or where "agency action is committed to agency discretion by law." 5 U.S.C. 701 (a) (1), (2). In Citizens to Preserve Overton
Park, Inc. v. Volpe, 401 U.S. 402, 410 (1971), the
Court held that the latter exception applies "where `statutes are drawn in
such broad terms that in a given case there is no law to apply,'" quoting
S. Rep. No. 752, 79th Cong., 1st Sess., 26 (1945). Were we simply confronted
with the authorization in 5 U.S.C. 301 to prescribe regulations regarding
"the custody, use, and preservation of [agency] records, papers, and
property," it would be difficult to derive any standards limiting agency
conduct which might constitute "law to apply." But our discussion in
Part III demonstrates [441 U.S. 281,
318] that 1905 and any
"authoriz[ation] by law" contemplated
by that section place substantive limits on agency action. 48
Therefore,
we conclude that DLA's decision to disclose the Chrysler reports is reviewable
agency action and Chrysler is a person "adversely affected or
aggrieved" within the meaning of 10 (a).
Both
Chrysler and the respondents agree that there is APA review of DLA's decision.
They disagree on the proper scope of review. Chrysler argues that there should
be de novo review, while the respondents contend that such review is only
available in extraordinary cases and this is not such a case.
The
pertinent provisions of 10 (e) of the APA, 5 U.S.C. 706, state that a reviewing
court shall
"(2)
hold unlawful and set aside agency action, findings
and conclusions found to be -
"(A)
arbitrary, capricious, an abuse of discretion, or otherwise not in accordance
with law;
.
. . . .
"(F)
unwarranted by the facts to the extent that the facts
are subject to trial de novo by the reviewing court."
For
the reasons previously stated, we believe any disclosure that violates 1905 is
"not in accordance with law" within the meaning of 5 U.S.C. 706 (2)
(A). De novo review by the District Court is ordinarily not necessary to decide
whether a contemplated disclosure runs afoul of 1905. The District Court in
this case concluded that disclosure of some of Chrysler's documents was barred
by 1905, but the Court of Appeals did not reach the issue. We shall therefore
vacate the Court of Appeals' judgment and remand for further proceedings
consistent with this opinion in order that the Court [441 U.S. 281, 319]
of Appeals may consider whether the contemplated disclosures would
violate the prohibition of 1905. 49
Since
the decision regarding this substantive issue - the scope of 1905 - will
necessarily have some effect on the proper form of judicial review pursuant to
706 (2), we think it unnecessary, and therefore unwise, at the present stage of
this case for us to express any additional views on that issue.
Vacated
and remanded.
Footnotes
[ Footnote
1 ]
Executive Order No. 11246, 3 CFR 339 (1964-1965 Comp.), prohibits
discrimination on the basis of "race, creed, color, or national
origin" in federal employment or by Government contractors. Under 202 of this Executive Order, most Government contracts
must contain a provision whereby the contractor agrees not to discriminate in
such a fashion and to take affirmative action to ensure equal employment
opportunity. With promulgation of Executive Order No. 11375, 3 CFR 684
(1966-1970 Comp.), in 1967, President Johnson extended the requirements of the
1965 Order to prohibit discrimination on the basis of sex.
[ Footnote
2 ]
41 CFR 60-1.3, 60-1.7 (1978).
[ Footnote
3 ]
For convenience all references will be to DLA.
[ Footnote
4 ] 41 CFR
60-1.20, 60-1.24 (1978). The term "alphabet soup" gained currency in
the early days of the New Deal as a description of the proliferation [441 U.S. 281, 287]
of
new agencies such as WPA and PWA. The terminology required to describe the
present controversy suggests that the "alphabet soup" of the New Deal
era was, by comparison, a clear broth.
[ Footnote
5 ]
60-40.2 (a). The regulations also state that EEO-1 Reports "shall be
disclosed," 60-40.4 and that AAP's "must be disclosed" if not
within limited exceptions. 60-40.2 (b) (1), 60-40.3.
[ Footnote
6 ]
Manning tables are lists of job titles and of the number of people who perform
each job.
[ Footnote
7 ]
Compare Westinghouse Electric Corp. v. Schlesinger, 542 F.2d 1190 (CA4 1976),
cert. denied, 431 U.S. 924 (1977),
with Sears, Roebuck & Co. [441 U.S. 281, 290]
v.
Eckerd, 575 F.2d 1197 (CA7 1978); General Dynamics Corp. v. Marshall, 572 F.2d
1211 (CA8 1978); Pennzoil Co. v. FPC, 534 F.2d 627 (CA5 1976); Charles River
Park "A," Inc. v. Department of HUD, 171 U.S. App. D.C. 286, 519 F.2d
935 (1975).
[ Footnote
8 ]
NLRB v. Robbins Tire & Rubber Co., 437 U.S. 214 (1978);
Department of Air Force v. Rose, 425 U.S. 352 (1976); FAA
Administrator v. Robertson, 422 U.S. 255 (1975); NLRB v.
Sears, Roebuck & Co., 421 U.S. 132 (1975);
Renegotiation Bd. v. Grumman Aircraft Engineering Corp., 421 U.S. 168 (1975); Renegotiation
Bd. v. Bannercraft Clothing Co., 415 U.S. 1 (1974); EPA v.
Mink, 410 U.S. 73 (1973).
[ Footnote
9 ]
"Subsection (b) of the Act creates nine exemptions from compelled
disclosures. These exemptions are explicitly made exclusive, 5 U.S.C. 552 (c),
and are plainly intended to set up concrete, workable standards for determining
whether particular material may be withheld or must be disclosed." EPA v.
Mink, supra, at 79 (emphasis added).
[ Footnote
10 ]
We observed in Department of Air Force v. Rose, supra, at 361, that
"disclosure, not secrecy, is the dominant objective of the Act." The
legislative history is replete with references to Congress' desire to loosen
the agency's grip on the data underlying governmental decisionmaking.
"A
democratic society requires an informed, intelligent electorate, and the
intelligence of the electorate varies as the quantity and quality of its
information varies. . . .
"[The
FOIA] provides the necessary machinery to assure the availability of Government
information necessary to an informed electorate." H. R.
Rep. No. 1497, 89th Cong., 2d Sess., 12 (1966).
"Although
the theory of an informed electorate is vital to the proper operation of a
democracy, there is nowhere in our present law a statute [441 U.S. 281, 291]
which
affirmatively provides for that information." S. Rep.
No. 813, 89th Cong., 1st Sess., 3 (1965).
[ Footnote
11 ]
See, e. g., H. R. Rep. No. 1497, supra, at 10 (emphasis added; footnote
omitted):
"[Exemption
4] would assure the confidentiality of information obtained by the Government
through questionnaires or through material submitted and disclosures made in
procedures such as the mediation of labor-management controversies. It exempts
such material if it would not customarily be made public by the person from
whom it was obtained by the Government. . . . It would . . . include
information which is given to an agency in confidence, since a citizen must be
able to confide in his Government. Moreover, where the Government has obligated
itself in good faith not to disclose documents or information which it
receives, it should be able to honor such obligations."
The
italicized passage is obviously consistent with Exemption 4's being an
exception to the disclosure mandate of the FOIA and not a limitation on agency
discretion.
[ Footnote
12 ]
See S. Rep. No. 813, supra, at 3:
"It
is not an easy task to balance the opposing interests, but it is not an
impossible one either. It is not necessary to conclude that to protect one of
the interests, the other must, of necessity, either be abrogated or
substantially subordinated. Success lies in providing a workable formula which
encompasses, balances, and protects all interests, yet places emphasis on the
fullest responsible disclosure."
[ Footnote
13 ]
Id., at 9; n. 11, supra.
[ Footnote
14 ]
It is informative in this regard to compare the FOIA with the Privacy Act of
1974, 5 U.S.C. 552a. In the latter Act, Congress explicitly requires agencies
to withhold records about an individual from most third parties unless the
subject gives his permission. Even more telling is 49 U.S.C. 1357, a section
which authorizes the Administrator of the FAA to take antihijacking
measures, including research and development of protection devices.
"Notwithstanding
[the FOIA], the Administrator shall prescribe such regulations as he may deem
necessary to prohibit disclosure of any information obtained or developed in
the conduct of research and development activities under this subsection if, in
the opinion of the Administrator, the disclosure of such information -
.
. . . .
"(B)
would reveal trade secrets or privileged or confidential commercial or
financial information obtained from any person . . . ." 1357
(d) (2) (B).
[ Footnote
15 ]
Section 3 of the original APA provided that an agency should generally publish
or make available organizational data, general statements of policy, rules, and
final orders. Exception was made for matters "requiring secrecy in the
public interest" or "relating solely to the internal management of an
agency." This original version of 3 was repealed with passage of the FOIA.
See EPA v. Mink, 410 U.S. 73 (1973).
[ Footnote
16 ]
H. R. Rep. No. 1497, 89th Cong., 2d Sess., 2, 5, 7 (1966) (emphasis added). See
also S. Rep. No. 813, 89th Cong., 1st Sess., 10 (1965). Congressman Moss, the
House sponsor of the FOIA, described the exemptions on the House floor as
indicating what documents "may be withheld." 112
Cong. Rec. 13641 (1966).
[ Footnote
17 ]
41 CFR 60.40-1 to 60.40-4 (1978).
[ Footnote
18 ]
E. g., Batterton v. Francis, 432 U.S. 416, 425 n. 9 (1977); Foti v. INS, 375 U.S. 217, 223 (1963); United
States v. Mersky, 361 U.S. 431, 437 -438 (1960);
Atchison, T. & S. F. R. Co. v. Scarlett, 300 U.S. 471, 474 (1937).
[ Footnote
19 ]
Paul v. United States, 371 U.S. 245 (1963);
Free v. Bland, 369 U.S. 663 (1962);
Public Utilities Comm'n of California v. United
States, 355 U.S. 534 (1958).
[ Footnote
20 ]
Revenue Act of 1864, 38, 13 Stat. 238.
[ Footnote
21 ]
The last version was codified as 18 U.S.C. 216 (1940 ed.):
"It
shall be unlawful for any collector, deputy collector, agent, clerk, or other
officer or employee of the United States to divulge or to make known in any
manner whatever not provided by law to any person the operations, style of
work, or apparatus of any manufacturer or producer visited by him in the
discharge of his official duties, or the amount or source of income, profits,
losses, expenditures, or any particular thereof, set forth or disclosed in any
income return, or to permit any income return or copy thereof or any book
containing any abstract or particulars thereof to be seen or examined by any
person except as provided by law; and it shall be unlawful for any person to
print or publish in any manner whatever not provided by law any income return,
or any part thereof or source of income, profits, losses, or expenditures
appearing in any income return; and any offense against the foregoing provision
shall be a misdemeanor and be punished by a fine not exceeding $1,000 or by
imprisonment not exceeding one year, or both, at the discretion of the court;
and if the offender be an officer or employee of the United States he shall be
dismissed from office or discharged from employment."
[ Footnote
22 ] See, e. g., 26
Cong. Rec. 6893 (1894) (Sen. Aldrich) (expressing [441
U.S. 281, 297] concern that taxpayer's
confidential information is "to be turned over to the tender mercies of
poorly paid revenue agents"); id., at 6924 (Sen. Teller) (exposing records
to the "idle curiosity of a revenue officer"). See also Cong. Globe,
38th Cong., 1st Sess., 2997 (1864) (Rep. Brown) (expressing concern that 1864
revenue provisions would allow "every little petty officer" to
investigate the affairs of private citizens).
[ Footnote
23 ]
There was
virtually no Washington bureaucracy created by the Act of July 1, 1862, ch. 119, 12 Stat. 432, the statute to which the present Internal
Revenue Service can be traced. Researchers report that during the Civil
War 85% of the operations of the Bureau of Internal Revenue were carried out in
the field - "including the assessing and collection of taxes, the handling
of appeals, and punishment for frauds" - and this balance of
responsibility was not generally upset until the 20th century. L. Schmeckebier & F. Eble, The Bureau of Internal Revenue 8, 40-43 (1923). Agents had
the power to enter any home or business establishment to look for taxable
property and examine books of accounts. Information was collected and processed
in the field. It is, therefore, not surprising to find that congressional
comments during this period focused on potential abuses by agents in the field
and not on breaches of confidentiality by a Washington-based bureaucracy.
[ Footnote
24 ]
See H. R. Rep. No. 304, 80th Cong., 1st Sess., A127-A128 (1947).
[ Footnote
25 ]
The Tariff Commission statute, last codified as 19
U.S.C. 1335 (1940 ed.), provided:
"It
shall be unlawful for any member of the commission, or for any employee, agent,
or clerk of the commission, or any other officer or employee of the United
States, to divulge, or to make known in any manner whatever not provided for by
law, to any person, the trade secrets or processes of any person, firm, copartnership,
corporation, or association embraced in any examination or investigation
conducted by the commission, [441 U.S. 281, 298]
or
by order of the commission, or by order of any member thereof. Any offense
against the provisions of this section shall be a misdemeanor and be punished
by a fine not exceeding $1,000, or by imprisonment not exceeding one year, or
both, in the discretion of the court, and such offender shall also be dismissed
from office or discharged from employment."
[ Footnote
26 ]
15 U.S.C. 176a (1940 ed.):
"Any
statistical information furnished in confidence to the Bureau of Foreign and
Domestic Commerce by individuals, corporations, and firms shall be held to be
confidential, and shall be used only for the statistical purposes for which it
is supplied. The Director of the Bureau of Foreign and Domestic Commerce shall
not permit anyone other than the sworn employees of the Bureau to examine such
individual reports, nor shall he permit any statistics of domestic commerce to
be published in such manner as to reveal the identity of the individual,
corporation, or firm furnishing such data."
[ Footnote
27 ]
H. R. Rep. No. 304, supra n. 24, at A127.
[ Footnote
28 ]
In a December 1, 1953, opinion, the Attorney General advised the Secretary of
the Treasury that he should regard himself as bound by 1905. The Attorney
General noted:
"The
reviser of the Criminal Code describes the provision as a consolidation of
three other sections formerly appearing in the United States Code. Of the
three, two expressly operated as prohibitions on the heads of agencies." 41 Op. Atty. Gen. 166, 167 (footnote omitted).
See also id., at 221 (Atty. Gen. Brownell advising
Federal Communications Commission Chairman to regard himself as bound).
[ Footnote
29 ]
If we accepted the respondents' position, 18 U.S.C. 1905 would simply be
irrelevant to the issue of public access to agency information. The FOIA and
other such "access" legislation are concerned with formal agency
action - to what extent can an agency or department or, put differently, the
head of an agency or department withhold information contained within the
governmental unit's files. It is all but inconceivable that a Government
employee would withhold information which his superiors had directed him to
release; and these Acts are simply not addressed to disclosure by a Government employee
that is not sanctioned by the employing agency. This is not to say that the
actions of individual employees might not be inconsistent with the access
legislation. But such actions are only inconsistent insofar as they are imputed
to the agencies themselves. Therefore, if 1905 is not addressed to formal
agency action - i. e., action approved by the agency
or department head - there should have been no concern in Congress regarding
the interrelationship of 1905 and the access legislation, for they would then
address totally different types of disclosure.
In
fact, the legislative history of all the significant access legislation of the
last 20 years evinces a concern with this relationship and a [441 U.S. 281, 300]
concomitant
universal assumption that 1905 embraces formal agency action. Congress was
assured that the 1958 amendment to 5 U.S.C. 301, the housekeeping statute that
affords department heads custodial responsibility for department records, would
not circumscribe the confidentiality mandated by 1905. The 1958 amendment
simply clarified that 301 itself was not substantive
authority to withhold information. See infra, at 310-312. Also in 1958 the
Subcommittee on Constitutional Rights of the Senate Committee on the Judiciary
conducted hearings on the power of the President to withhold information from
Congress. As part of the investigative effort, a list was compiled of all
statutes restricting disclosure of Government information. Section 1905 was
listed among them. Hearings before the Subcommittee on
Constitutional Rights of the Senate Committee on the Judiciary on S. 921, 85th
Cong., 2d Sess., pt. 2, p. 986 (1958). Two years later, the House
Committee on Government Operations conducted a study on statutory authorities
restricting or requiring the release of information under the control of
executive departments or independent agencies, and again prominent among the
statutes "affecting the availability of information to the public"
was 18 U.S.C. 1905. House Committee on Government Operations, Federal Statutes
on the Availability of Information 262 (Comm. Print. 1960) (
1905 denominated as statute prohibiting the disclosure of certain
information).
In
FAA Administrator v. Robertson, 422 U.S., at 264 -265, we
recognized the importance of these lists in Congress' later deliberations
concerning the FOIA, particularly in the consideration of the original
Exemption 3. That Exemption excepted from the
operation of the FOIA matters "specifically exempted from disclosure by
statute." As we noted in Robertson:
"When
the House Committee on Government Operations focused on Exemption 3, it took
note that there are `nearly 100 statutes or parts of statutes which restrict
public access to specific Government records. These would not be modified by
the public records provisions of [the FOIA].' H. R. Rep. No.
1497, 89th Cong., 2d Sess., 10 (1966). (Emphasis added.)" Id., at 265.
In
determining that the statute at issue in Robertson, 49 U.S.C. 1504, was within
Exemption 3, we observed that the statute was on these prior lists and that the
Civil Aeronautics Board had brought the statute to the attention of both the
House and Senate Committees as an exempting statute during the hearings on the
FOIA. 422 U.S., at 264
, and n. 11. In [441
U.S. 281, 301] fact, during those hearings 18
U.S.C. 1905 was the most frequently cited restriction on agency or department
disclosure of information. Hearings before the Subcommittee of the House
Committee on Government Operations on H. R. 5012 et al., 89th Cong., 1st Sess.,
283 (1965) (cited by 28 agencies as authority for withholding information).
Among those citing the statute was the Department of Justice. Id., at 386
("commercial information received or assembled in connection with
departmental functions must be withheld pursuant to these requirements"). See also id., at 20 (colloquy between Rep. Moss and Asst. Atty.
Gen. Schlei); Attorney General's Memorandum on the
Public Information Section of the Administrative Procedure Act 31-32 (June
1967) (18 U.S.C. 1905 among the "nearly 100 statutes" mentioned in
the House Report).
Most
recently, in its Report on the Government in the Sunshine Act, the House
Committee on Government Operations observed:
"[T]he
Trade Secrets Act, 18 U.S.C. 1905, which relates only to the disclosure of
information where disclosure is `not authorized by law,' would not permit the
withholding of information otherwise required to be disclosed by the Freedom of
Information Act, since the disclosure is there authorized by law. Thus, for
example, if material did not come within the broad trade secrets exemption
contained in the Freedom of Information Act, section 1905 would not justify
withholding; on the other hand, if material is within the trade secrets
exemption of the Freedom of Information Act and therefore subject to disclosure
if the agency determines that disclosure is in the public interest, section
1905 must be considered to ascertain whether the agency is forbidden from
disclosing the information." H. R. Rep. No. 94-880, pt. 1, p. 23 (1976).
[ Footnote
30 ]
5 U.S.C. 553 (b), (d).
[ Footnote
31 ]
Neither the House nor Senate Report attempted to expound on the distinction. In
prior cases, we have given some weight to the Attorney General's Manual on the
Administrative Procedure Act (1947), since the Justice Department was heavily
involved in the legislative process that resulted in the Act's enactment in
1946. See Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense
Council, Inc., 435 U.S. 519, 546 (1978); Power
Reactor Co. v. Electricians, 367 U.S. 396, 408 (1961); United
States v. Zucca, 351 U.S. 91, 96 (1956).
The
Manual refers to substantive rules as rules that "implement" the
statute. "Such rules have the force and effect of law." Manual, supra, at 30 n. 3. In contrast it suggests that
"interpretive rules" and "general statements of policy" do
not have the force and effect of law. Interpretive rules are "issued by an
agency to advise the public of the agency's construction of the statutes and
rules which it administers." Ibid. General statements
of policy are "statements issued by an agency to advise the public
prospectively of the manner in which the agency proposes to exercise a
discretionary power." Ibid. See also Final Report
of Attorney General's Committee on Administrative Procedure 27 (1941).
[ Footnote
32 ]
Quoting Attorney General's Manual on the Administrative Procedure Act, supra,
at 30 n. 3.
[ Footnote
33 ]
See, e. g., Contractors Assn. of Eastern Pa. v. Secretary of Labor, 442 F.2d
159 (CA3), cert. denied, 404 U.S. 854 (1971); Hearings
before the Subcommittee on Separation of Powers of the Senate Committee on the
Judiciary on the Philadelphia Plan and S. 931, 91st Cong., 1st Sess. (1969);
Jones, The Bugaboo of Employment Quotas, 1970 Wis. L. Rev. 341; Leiken, Preferential Treatment in the Skilled Building
Trades: An Analysis of the Philadelphia Plan, 56 Cornell L. Rev. 84 (1970);
Comment, The Philadelphia Plan: A Study in the Dynamics of Executive Power, 39
U. Chi. L. Rev. 723 (1972); Note, Executive Order 11246: Anti-Discrimination
Obligations in Government Contracts, 44 N. Y. U. L. Rev. 590 (1969).
The
Executive Order itself merely states that it is promulgated "[u]nder and by virtue of the authority vested in [the]
President of the United States by the Constitution and statutes of the United
States." 3 CFR 339 (1964-1965 Comp.).
[ Footnote
34 ]
63 Stat. 377, as amended, 40 U.S.C. 471 et seq. The Act as amended is prefaced
with the following declaration of policy:
"It
is the intent of the Congress in enacting this legislation to provide for the Government
an economical and efficient system for (a) the procurement and supply of
personal property and nonpersonal
services, including related functions such as contracting, inspection, storage,
issue, [441 U.S. 281, 305]
specifications
property identification and classification, transportation and traffic
management, establishment of pools or systems for transportation of Government
personnel and property by motor vehicle within specific areas, management of
public utility services, repairing and converting, establishment of inventory
levels, establishment of forms and procedures, and representation before
Federal and State regulatory bodies; (b) the utilization of available property;
(c) the disposal of surplus property; and (d) records management." 40 U.S.C. 471.
The
Act explicitly authorizes Executive Orders "necessary to effectuate [its]
provisions." 486 (a). However, nowhere in the Act
is there a specific reference to employment discrimination.
Lower
courts have suggested that 486 (a) was the authority for predecessors of
Executive Order 11246. Farmer v. Philadelphia Electric Co.,
329 F.2d 3 (CA3 1964); Farkas v. Texas Instrument,
Inc., 375 F.2d 629 (CA5), cert. denied, 389 U.S. 977 (1967).
But as the Third Circuit noted in Contractors Assn. of Eastern Pa. v. Secretary
of Labor, supra, at 167, these suggestions were dicta and made without any
analysis of the nexus between the Federal Property and Administrative Services
Act and the Executive Orders. It went on to hold, however, that 486 (a) was
authority for at least some aspects of Executive Order 11246 on the ground that
"it is in the interest of the United States in all procurement to see that
its suppliers are not over the long run increasing its costs and delaying its
programs by excluding from the labor pool available minority workmen." 442 F.2d, at 170.
[ Footnote
35 ]
42 U.S.C. 2000d to 2000d-4, 2000e to 2000e-17. Significantly, the question has
usually been put in terms of whether Executive Order 11246 is inconsistent with
these titles of the Civil Rights Act of 1964. See, e. g., Contractors Assn. of
Eastern Pa. v. Secretary of Labor, supra, at 171-174.
Title
VI grants federal agencies that are "empowered to extend Federal financial
assistance to any program or activity, by way of grant, loan, or
contract," the authority to promulgate rules "which shall be
consistent with achievement of the objectives of the statute authorizing the
financial assistance in connection with which the action is taken." Such
rules must be approved by the President, and their enforcement is subject to
congressional review. "In the case of any action terminating, or refusing
to [441 U.S. 281, 306]
grant
or continue, assistance because of failure to comply with a requirement imposed
pursuant to this section, the head of the Federal department or agency shall
file with the committees of the House and Senate having legislative
jurisdiction over the program or activity involved a full written report of the
circumstances and the grounds for such action." 602 of
the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d-1. Executive
Order 11246 contains no provision for congressional review, and therefore is
not promulgated pursuant to 602. Cf. Exec. Order No. 11247, 3 CFR 348
(1964-1965 Comp.). Titles VI and VII contain no other express substantive
delegation to the President.
[ Footnote
36 ]
This is an argument that Congress ratified Executive Order 11246 as amended,
when it rejected a series of amendments to the Equal Employment Opportunity Act
that were designed to cut back on affirmative-action efforts under the
Executive Order.
[ Footnote
37 ]
See Farkas v. Texas Instrument, Inc., supra; Farmer
v. Philadelphia Electric Co., supra; cf. Perkins v. Lukens Steel Co., 310 U.S. 113 (1940);
Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579, 637 (1952) (Jackson,
J., concurring).
[ Footnote
38 ]
The respondents cite Jones v. Rath Packing Co., 430 U.S. 519, 536 (1977),
for the proposition that "it has long been acknowledged that
administrative regulations consistent with the agencies' substantive statutes
have the force and effect of law." Brief for Respondents 38, and n. 24.
The legislative delegation in that case, however, was quite explicit. The issue
was whether state regulation of the labeling of meats and flour was pre-empted
by the Federal Meat Inspection Act (FMIA), the Federal [441
U.S. 281, 307] Food, Drug, and Cosmetic Act
(FDCA), and the Fair Packaging and Labeling Act. The FMIA provides that meat or
a meat product is misbranded
"(5)
if in a package or other container unless it bears a
label showing . . .
(B)
an accurate statement of the quantity of the contents in terms of weight,
measure, or numerical count: Provided, That . . . reasonable variations may be
permitted, and exemptions as to small packages may be established, by
regulations prescribed by the Secretary." 1 (n) (5) of
the FMIA, 21 U.S.C. 601 (n) (5).
There
is a similar provision in the FDCA.
[ Footnote
39 ]
See H. R. Rep. No. 1461, 85th Cong., 2d Sess., 1 (1958):
"The
law has been called an office `housekeeping' statute, enacted to help General
Washington get his administration underway by spelling out the authority for
executive officials to set up offices and file Government documents. The
documents involved are papers pertaining to the day-to-day business of
Government which are not restricted under other specific laws nor classified as
military information or secrets of state."
The
Secretary of Labor did not cite this statute as authority for the OFCCP
disclosure regulations. 38 Fed. Reg.
3192-3193 (1973).
[ Footnote
40 ]
This does not mean, of course, that disclosure regulations promulgated on the
basis of 301 are "in excess of statutory jurisdiction, authority, or
limitations" for purposes of the APA, 5 U.S.C. 706 (2) (C). It simply
means that disclosure pursuant to them is not "authorized by law"
within the meaning of 1905.
[ Footnote
41 ]
The House Committee on Government Operations cited approvingly an observation
by legal experts that
"[
301] merely gives department heads authority to regulate within their
departments the way in which requests for information are to be dealt with -
for example, by centralizing the authority to deal with such requests in the
department head." H. R. Rep. No. 1461, 85th Cong., 2d
Sess., 7 (1958).
It
noted that the members of its Special Subcommittee on Government Information
"unanimously
agreed that [ 301] originally was adopted in 1789 to provide for the day-to-day
office housekeeping in the Government departments, but through misuse it has
become twisted into a claim of authority to withhold information." Id., at 12.
There
are numerous remarks to similar effect in the Senate Report and the floor
debates. See, e. g., S. Rep. No. 1621, 85th Cong., 2d Sess., 2 (1958); 104
Cong. Rec. 6549 (Rep. Moss), 6560 (Rep. Fascell),
15690-15696 (colloquy between Sens. Hruska and
Johnston) (1958).
[ Footnote
42 ]
Throughout the floor debates references are made to 78 statutes that require
the withholding of information, and assurances are
consistently given that these statutes are not in any way affected by 301. E. g., 104 Cong. Rec. 6548 (Rep. Brown), 6549-6550 (Rep. Moss)
(1958). It is clear from Congressman Moss' comments that 1905 is one of
those statutes. 104 Cong. Rec. 6549-6550 (1958). There
is also frequent reference to trade secrets as not being disclosable
and the confidentiality of that information as not being affected by 301. H. R. Rep. No. 1461, 85th Cong., 2d Sess., 2 (1958); 104 Cong. Rec.
6558 (Rep. Fascell), 6564 (Rep. Wright) (1958).
The following exchange between Congressmen Meader and
Moss is also instructive.
"Mr.
MEADER. Mr. Chairman, I should like the attention of the gentleman from
California [Mr. Moss], the sponsor of the measure. I [441
U.S. 281, 312] would like to read three
paragraphs from the additional views I submitted to the report which appear
upon page 62 of the report. I said:
"I
believe there is unanimous sentiment in the Government Operations Committee on
the following points:
"1.
That departments and agencies of the Government have construed [ 301] to authorize them to withhold information from the
public and to limit the availability of records to the public.
"2.
That this interpretation is a strained and erroneous interpretation of the
intent of Congress in [ 301] which merely authorized department heads to make
regulations governing day-to-day operation of the department - a so-called
housekeeping function; and that [ 301] was not intended to deal with the
authority to release or withhold information or records.
.
. . . .
"I
now yield to the gentleman from California to state whether or not those three
points as I have set them forth in my additional views in the report on this
measure accurately state what he understands to be the consensus of the
judgment of the members of the Government Operations Committee in reporting out
this legislation?
"MR.
MOSS. That is correct as I interpret it." Id., at 6562 (emphasis added).
[ Footnote
43 ]
See, e. g., Morton v. Ruiz, 415 U.S. 199 (1974); United
States v. Allegheny-Ludlum Steel Corp., 406 U.S. 742, 758 (1972).
[ Footnote
44 ] [441 U.S. 281, 313]
U.S.C.
553:
"(a)
This section applies, according to the provisions
thereof, except to the extent that there is involved -
"(1)
a military or foreign affairs function of the United States; or
"(2)
a matter relating to agency management or personnel or
to public property, loans, grants, benefits, or contracts.
"(b)
General notice of proposed rule making shall be published in the Federal
Register, unless persons subject thereto are named and either personally served
or otherwise have actual notice thereof in accordance with law. The notice
shall include -
"(1)
a statement of the time, place, and nature of public rule making proceedings;
"(2)
reference
to the legal authority under which the rule is proposed; and [441 U.S. 281, 314]
"(3)
either the terms or substance of the proposed rule or
a description of the subjects and issues involved.
"Except
when notice or hearing is required by statute, this subsection does not apply -
"(A)
to interpretative rules, general statements of policy, or rules of agency
organization, procedure, or practice; or
"(B)
when the agency for good cause finds (and incorporates
the finding and a brief statement of reasons therefor
in the rules issued) that notice and public procedure thereon are
impracticable, unnecessary, or contrary to the public interest.
"(c)
After notice required by this section, the agency shall give interested persons
an opportunity to participate in the rule making through submission of written
data, views, or arguments with or without opportunity for oral presentation.
After consideration of the relevant matter presented, the agency shall
incorporate in the rules adopted a concise general statement of their basis and
purpose. When rules are required by statute to be made on the record after
opportunity for an agency hearing, sections 556 and 557 of this title apply
instead of this subsection.
"(d)
The required publication or service of a substantive rule shall be made not
less than 30 days before its effective date, except -
"(1)
a substantive rule which grants or recognizes an exemption or relieves a
restriction;
"(2)
interpretative rules and statements of policy; or
"(3)
as otherwise provided by the agency for good cause
found and published with the rule.
"(e)
Each agency shall give an interested person the right to petition for the
issuance, amendment, or repeal of a rule."
[ Footnote
45 ]
The regulations at issue in Jones v. Rath Packing Co., see n. 38, supra, were the product of notice of proposed
rulemaking and comment. 32 Fed. Reg. 10729 (1967); 35
Fed. Reg. 15552 (1970).
We
also note that the respondents' reliance on FCC v. Schreiber, 381 U.S. 279 (1965), is
misplaced. In that case the Court held that a FCC rule - that investigatory
proceedings would be public unless a hearing examiner found that "the
public interest, the proper dispatch of the business . . ., or the ends of
justice" would be served by closed sessions - was consistent with the
pertinent congressional grant of authority and not arbitrary or unreasonable.
This Court held that the District Court impermissibly invaded the province of
the agency when it imposed its own notions of proper procedures. Cf. Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense
Council, Inc., 435 U.S. 519 (1978). There was no question in the case regarding the applicability of
1905. Moreover, the respondents had made a broad request that "all
testimony and [441 U.S. 281, 316] documents to be elicited from them . . .
should be received in camera." 381
U.S., at 295 (emphasis in original). The Court held that when specific
information was requested that might actually injure Schreiber's firm
competitively, "there would be ample opportunity to request that it be
received in confidence, and to seek judicial protection if the request were
denied." Id., at 296.
[
Footnote 46 ] 422
U.S., at 79 , citing Wyandotte Transportation Co. v. United States, 389
U.S. 191 (1967); J. I. Case Co. v. Borak, 377
U.S. 426 (1964); Texas & Pacific R. Co. v. Rigsby,
241
U.S. 33 (1916).
[ Footnote
47 ]
Jurisdiction to review agency action under the APA is found in 28 U.S.C. 1331.
See Califano v. Sanders, 430
U.S. 99 (1977).
Chrysler
does not argue in this Court, as it did below, that private rights of action
are available under 42 U.S.C. 2000e-8 (c) and 44
U.S.C. 3508.
[ Footnote
48 ]
By regulation, the Secretary of Labor also has imposed the standards of 1905 on
OFCCP and its compliance agencies. 29 CFR 70.21 (1978).
[ Footnote
49 ]
Since the Court of Appeals assumed for purposes of argument that the material
in question was within an exemption to the FOIA, that court found it
unnecessary expressly to decide that issue and it is open on remand. We, of
course, do not here attempt to determine the relative ambits of Exemption 4 and
1905, or to determine whether 1905 is an exempting statute within the terms of
the amended Exemption 3, 5 U.S.C. 522 (b) (3). Although there is a theoretical
possibility that material might be outside Exemption 4 yet within the
substantive provisions of 1905, and that therefore the FOIA might provide the
necessary "authoriz[ation] by law" for purposes
of 1905, that possibility is at most of limited practical significance in view
of the similarity of language between Exemption 4 and the substantive
provisions of 1905.
MR. JUSTICE MARSHALL, concurring.
I
agree that respondents' proposed disclosure of information is not
"authorized by law" within the meaning of 18 U.S.C. 1905, and I
therefore join the opinion of the Court. Because the number and complexity of
the issues presented by this case will inevitably tend to obscure the dispositive
conclusions, I wish to emphasize the essential basis for the decision today.
This
case does not require us to determine whether, absent a congressional
directive, federal agencies may reveal information obtained during the exercise
of their functions. For whatever inherent power an agency has in this regard,
1905 forbids agencies from divulging certain types of information unless
disclosure is independently "authorized by law." Thus, the
controlling issue in this case is whether the OFCCP disclosure [441 U.S. 281, 320]
regulations, 41 CFR 60.40-1 to 60.40-4 (1978), provide the requisite
degree of authorization for the agency's proposed release. The Court holds that
they do not, because the regulations are not sanctioned directly or indirectly
by federal legislation. 1 In imposing the authorization requirement of
1905, Congress obviously meant to allow only those disclosures contemplated by
congressional action. Ante, at 298-312. Otherwise, the agencies Congress
intended to control could create their own exceptions to 1905 simply by
promulgating valid disclosure regulations. Finally, the Court holds that since
10 (e) of the Administrative Procedure Act requires agency action to be
"in accordance with law," 5 U.S.C. 706 (2) (A), a reviewing court can
prevent any disclosure that would violate 1905. 2
Our
conclusion that disclosure pursuant to the OFCCP regulations is not
"authorized by law" for purposes of 1905, however, does not mean the
regulations themselves are "in excess of statutory jurisdiction,
authority, or limitations, or short of statutory right" for purposes of
the Administrative Procedure Act. 5 U.S.C. 706 (2) (C).
As the Court recognizes, ante, at 309 n. 40, that inquiry involves very
different considerations than those presented in the instant case. Accordingly,
we do not question the general validity of these OFCCP regulations or any other
regulations promulgated under 201 of Executive Order No. 11246, 3 CFR 340
(1964-1965 Comp.). Nor do we consider whether such an Executive Order must be
founded on a legislative enactment. The [441
U.S. 281, 321] Court's
holding is only that the OFCCP regulations in issue here do not
"authorize" disclosure within the meaning of 1905.
Based
on this understanding, I join the opinion of the Court.
[ Footnote
1 ]
That the OFCCP regulations were not promulgated in strict compliance with the
Administrative Procedure Act, ante, at 312-316, is an independent reason why
those regulations do not satisfy the requirements of 1905, although the agency
could rectify this shortcoming.
[ Footnote
2 ]
Thus, the courts below must determine on remand whether 1905 covers the types
of information respondents intended to disclose. Disclosure of those documents
not covered by 1905 would, under the Court's holding, be "in accordance
with law." 5 U.S.C. 706 (2) (A). [441 U.S. 281, 322]