CSG Law Alert: Will Loper Impact New Jersey Administrative Law?
From 1984 – 2024, federal courts have deferred to federal agency interpretations of federal laws when the text of those laws was silent or ambiguous regarding the question at issue. Such deference was referred to as Chevron deference, based on the Supreme Court’s decision in Chevron v. Natural Resources Defense Council. The Chevron deference standard was recently overturned in Loper Bright Enterprises v. Raimondo. As a result, federal courts are no longer required to defer to agency interpretation of ambiguous statutes.
In Loper, the Court held that Chevron deference contravenes the Federal Administrative Procedure Act (“Federal APA”), which mandates that a reviewing court “shall decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action.” The decision also found that agencies have no special competence in resolving statutory ambiguities, even when an ambiguity involves a technical matter. However, federal courts will still defer to factual premises within an agency’s expertise.
While Loper is already frustrating the ability of federal agencies to interpret ambiguous statutes, the decision does not directly impact state agencies interpreting New Jersey statutes. New Jersey courts apply substantial deference to state agencies in a manner similar to Chevron. Additionally, the New Jersey Administrative Procedures Act (“New Jersey APA”) does not contain language prescribing the role of the court to review agency action.
As many commentators have previously observed, the concurring opinions in Loper may provide a roadmap to the erosion of agency deference in New Jersey based on separation of powers arguments. At present, there does not seem to be an appetite in the NJ Courts to take on the significant additional work necessary to independently interpret the New Jersey Administrative Code. Given the differences in the Federal APA and New Jersey APA, and the fact that the separation of power argument was not adopted by the majority opinion, Loper will not have an immediate effect on challenges to agency interpretation of New Jersey regulations.