Administrative agencies frequently conduct inspections and tests. As is the case with recordkeeping and reporting requirements, the APA does not specifically authorize inspections. Tests and inspections are made important by another pro-vision of the APA, which states that no hearing is necessary when adjudicative decisions rest solely on tests, inspections, or elections.

Thus, an agency need not conduct a hearing if it relies only on tests, inspections, or elections when making a decision in a case. If any other evidence is relied on, standard notice and hearing requirements must be satisfied. Most administrative inspections are to discover administrative violations. The Fourth Amendment to the U.S. Constitution must be considered.

The most fundamental requirement of the Fourth Amendment is that searches and seizures be reasonable. This applies to all searches and seizures by government authorities, including administrative searches. In the area of administrative inspections, one important exception to the warrant requirement of the Fourth Amendment has been recognized. Closely regulated businesses may be inspected without a warrant being obtained first. The rationale for the exception is that owners and operators of closely regulated businesses have a reduced expectation of privacy.

To require the government to obtain a warrant in these extreme circumstances would disable the agency’s attempts to protect the public. Without subpoena power, agencies would have no method of enforcing compliance with reporting or other production-of-information requirements. It has been determined that administrative subpoenas for information do come within the domain of the Fourth Amendment.