Formal rulemaking procedures under Rule 553 of the Administrative Procedure Act are triggered when the statute commanding rulemaking requires:

Formal rulemaking procedures under Rule 553 of the Administrative Procedure Act are triggered when the statute commanding rulemaking requires:

• A. That the rulemaking must be made after opportunity for hearing.
• B. That the rulemaking must be completed by a date certain.
• C. That the rulemaking must be made on the record and after hearing.
• D. That the rulemaking must be governed by Rule 553 of the Administrative Procedure Act.

Answer: (C)

The key idea is that formal rulemaking is invoked only when the statute requires the rule to be issued on the record after a hearing. That phrasing signals a trial‑type process: the agency must hold a hearing, allow the presentation of evidence (often including cross‑examination), create a transcript, and base the final rule solely on the evidence and arguments that appear in that record. Because the rule must be shaped from that on‑the‑record proceeding, the agency’s findings and final rule are then reviewed on the record for substantial support. If the statute only demands a hearing without requiring the rule to be made on the record, or imposes a deadline, or contemplates informal notice‑and‑comment procedures, those do not trigger formal rulemaking. In short, the trigger is the statute’s requirement that the rule be made on the record after an opportunity for hearing.

The key idea is that formal rulemaking is invoked only when the statute requires the rule to be issued on the record after a hearing. That phrasing signals a trial‑type process: the agency must hold a hearing, allow the presentation of evidence (often including cross‑examination), create a transcript, and base the final rule solely on the evidence and arguments that appear in that record. Because the rule must be shaped from that on‑the‑record proceeding, the agency’s findings and final rule are then reviewed on the record for substantial support. If the statute only demands a hearing without requiring the rule to be made on the record, or imposes a deadline, or contemplates informal notice‑and‑comment procedures, those do not trigger formal rulemaking. In short, the trigger is the statute’s requirement that the rule be made on the record after an opportunity for hearing.