I am not sure what is a better alternative. Laws can set the broad guidelines, but the people in those administrative roles have to make explicit decisions when gray areas inevitably arise. The legislature is free to codify the exact rules it wants when they disagree with the current setup.
They are free to do it but don't. That's exactly the problem. They also don't respond to overreach in rulemaking by revising the grants they have made, so it has been a cumulative process.