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35 Clearinghouse Rev. 546 (2001-2002)
Privatized Welfare and the Nondelegation Doctrine

handle is hein.journals/clear35 and id is 546 raw text is: Privatized Welfare and the
Nondelegation Doctrine
By Dru Stevenson

In many states the administrative agencies
that operate the panoply of welfare ser-
vices have begun to contract with private,
for-profit corporations to administer various
programs.1 Although the term privatiza-
tion can have a wide range of meanings,
in this article it refers to the wholesale del-
egation of eligibility determinations for wel-
fare programs. These arrangements may
be with national firms such as Maximus
Inc. or small, local providers such as
Colonial Cooperative Care in Connecticut.
When the government privatizes eligibili-
ty decisions for government programs, it
implicates a venerable, though seldom-
used, doctrine of American constitutional
jurisprudence: the nondelegation doctrine,
which places constitutional limits on the
extent to which the branches of govern-
ment may delegate their vested authority
to others.2 The doctrine can apply to del-
egation from the legislature to administra-
tive agencies, from one level of govern-
ment to another (such as state-municipal),
or delegation to private parties.

In this article I survey the nondelega-
tion doctrine historically and attempt to dis-
tinguish between general categories of
cases and their respective treatment by the
courts. I should note at the outset that, to
date, delegation of government welfare ser-
vices to private corporations apparently has
not been challenged under the nondele-
gation doctrine, and in this article I attempt
to advocate a new theory for such a chal-
lenge. The discussion will then focus on a
few modem cases that seem particularly
relevant to the privatization of welfare ser-
vices and that could be woven together
into a coherent analysis for use by the
courts. I finally examine the issues of the
private contractors' financial conflicts of
interest in light of cases addressing finan-
cially interested adjudicators in general.
I. Nondelegation Doctrines
Governmental delegation falls into three
basic categories: delegation from one
branch of government to another, typi-
cally through an agency or commission;

Dru Stevenson is an attorney,
Greater Hartford Legal
Assistance, 80 Jefferson St.,
Hartford, CT 06106;
860.541.5017;
dstevenson @ghla.org.

Nonprofit corporations have also received some of these contracts, but the discussion in
this article focuses entirely on the conflicts of interest created by contracting with for-
profit corporations.
2 The origin of the nondelegation doctrine or concept is generally credited to John Locke:
The Legislature cannot transfer the Power of Making Laws to any other hands. JOHN
LOCKE, SECOND TREATISE OF GOVERNMENT 380-81 (Cambridge University Press 1981). For
discussion of the doctrine, see Peter H. Aranson et al., A Theory of Legislative Delegation,
68 CORNELL L. REV. 1, 4 (1983); Jim Rossi, Institutional Design and the Lingering Legacy
of Antifederalist Separation of Powers Ideals in the States, 52 VAND. L. REV. 1167, 1174
(Oct. 1999); David Schoenbrod, The Delegation Doctrine: Could the Court Give It
Substance?, 83 MICH. L. REV. 1223, 1267 (1985).

CLEARINGHOUSE REVIEW I JANUARY-FEBRUARY 2002

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