An administrative agency as defined by the Texas Administrative Procedure Act means a state officer, board, commission or department with statewide jurisdiction that makes rules or determines contested cases. The definition does not include a state agency financed wholly with federal money, the legislature, the courts or institutes of higher learning. Thus localized school boards are not administrative agencies under the Act.
An administrative agency is supposed to bring expertise to a specific regulatory scheme. For example the Texas Medical Board is charged with the regulation of the practice of medicine. Its board members include 12 doctors to better tailor the regulation to the exigencies of a specialized occupation.
An administrative agency can also make rules, conduct hearings to determine violations of those rules and grant licenses to permit entry into the field the agency is regulating. It is also responsible for disciplining and renewing established licensees.
