Administrative agencies are sometimes described as the fourth branch of government. There are federal and local and state administrative agencies.

Federal administrative agencies are created by either Congress or the executive branch, and have broad regulatory powers. An example of a federal administrative agency is the US Department of Homeland Security. This agency was created under landmark law. This Act placed 22 existing federal agencies under a single umbrella of the Cabinet-level Department of Homeland Security. Its mission is to prevent domestic terrorist attacks, reduce vulnerability to these attacks and minimize the harm that they could cause, as well as assisting in recovery after an attack.

State administrative agencies have a profound effect on business. State administrative agencies are empowered to enforce state statutes. They have the power to adopt rules and regulations to interpret the statutes they are empowered to administer. Local governments such as cities, municipalities, and counties create local administrative agencies to administer local regulatory law. List and explain the functions of administrative agencies. Discuss the role of a federal administrative agency and a state administrative agency.