Administrative Discretion

The authority given by the legislature to an agency to make a choice or judgment about how to implement a program or statute. Among the details left to administrative discretion is the promulgation of regulations. The agency is free to issue regulations “in accordance with the sound exercise of discretion” (U.S. General Accounting Office, 2004). When the legislature leaves the details of implementation to the agency, “there is an express delegation of authority to the agency to elucidate a specific provision of the statute by regulation” (Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 1984), and “any ensuing regulation is binding in the courts unless procedurally defective, arbitrary or capricious in substance, or manifestly contrary to the statute” (Flynn John J. v. CmsnrIRS, 2001):

Most exercises of administrative discretion are subject to judicial review under the Administrative Procedure Act (APA) or the state equivalent. Sometimes, however, an action that, according to the APA, is “committed to agency discretion by law” is not subject to judicial review: In “rare instances statutes are drawn in such broad terms that in a given case there is no law to apply” (Senate Report No. 752, 1945).

Under federalism, conflicts between the different levels and courts may arise when state administrative agencies are required to apply the provisions of federal law to particular issues. For more information, see Chevron U.S.A., Inc. v. Natural Resources Defense Council, [Page 11]Inc. (1984), Flynn John J. v. Cmsnr IRS (2001), Senate Report No. 752 (1945), and U.S. General Accounting Office (2004).