Statutory authority: Overview, definition, and example
What is statutory authority?
Statutory authority refers to the legal power or authority granted to an individual, organization, or government body by a specific statute or law. Statutes are laws passed by a legislative body, such as a parliament or congress, and statutory authority is the official permission or mandate to act in certain ways or make decisions within the framework of that law. This authority ensures that the entity has the legal right to perform certain actions or regulate certain activities within the jurisdiction granted by the statute.
For example, a government agency may have statutory authority to regulate the financial industry, based on laws passed by the legislature.
Why is statutory authority important?
Statutory authority is important because it provides a clear legal basis for actions taken by individuals, organizations, or government bodies. Without statutory authority, actions or decisions could be considered illegal or unauthorized, potentially leading to legal disputes, fines, or other consequences. This authority helps maintain accountability and ensures that actions are carried out within the limits of the law.
For businesses, understanding statutory authority is essential for ensuring compliance with regulatory requirements. For government agencies, it provides the legitimacy needed to enforce laws, regulate industries, and ensure public safety and fairness.
Understanding statutory authority through an example
Imagine a government agency, the Environmental Protection Agency (EPA), which has statutory authority to regulate pollution and enforce environmental laws in the United States. This authority is granted by various environmental statutes, such as the Clean Air Act and the Clean Water Act. The EPA uses its statutory authority to set pollution standards, monitor industries, and take enforcement actions against violators.
In another example, a state-level building department may have statutory authority under state law to enforce building codes and inspect construction projects. This authority ensures that the department can issue permits, conduct inspections, and ensure compliance with safety standards for new buildings.
Example of statutory authority clause
Here’s how a statutory authority clause might look in a legal document or contract:
“The Agency shall exercise its powers and duties under the statutory authority granted by the Environmental Protection Act, and shall be responsible for the enforcement of all regulations concerning air and water quality within the jurisdiction.”
Conclusion
Statutory authority refers to the legal power granted by a specific statute or law to carry out certain actions, make decisions, or enforce regulations. It is crucial for ensuring that actions taken by individuals, businesses, or government bodies are legally supported and authorized. Statutory authority helps maintain order, accountability, and compliance with the law, whether in government operations, business regulations, or enforcement actions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.