Under Rule 553 of the Administrative Procedure Act, formal rulemaking procedures are triggered when the statute requires:

Under Rule 553 of the Administrative Procedure Act, formal rulemaking procedures are triggered when the statute requires:

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

Answer: (B)

Formal rulemaking under the Administrative Procedure Act is triggered only when the statute requires a hearing and that the rulemaking be on the record. The “on the record” aspect means there is a trial-like process with a transcript and evidence evaluated, which allows the agency’s decision to be reviewed based on that record. If the statute only calls for a hearing or for due process but does not require the proceedings to be on the record, the process remains informal notice-and-comment under the general rulemaking provisions. Therefore, the phrase that the rulemaking must be made after a hearing and on the record correctly identifies the dual requirement that defines formal rulemaking. The other formulations miss one element or misattribute the nature of the procedure: relying on the general scope of Rule 553 points to informal rulemaking, a date deadline is unrelated to formality, and merely requiring a hearing without an on-the-record process does not meet formal rulemaking.

Formal rulemaking under the Administrative Procedure Act is triggered only when the statute requires a hearing and that the rulemaking be on the record. The “on the record” aspect means there is a trial-like process with a transcript and evidence evaluated, which allows the agency’s decision to be reviewed based on that record. If the statute only calls for a hearing or for due process but does not require the proceedings to be on the record, the process remains informal notice-and-comment under the general rulemaking provisions. Therefore, the phrase that the rulemaking must be made after a hearing and on the record correctly identifies the dual requirement that defines formal rulemaking. The other formulations miss one element or misattribute the nature of the procedure: relying on the general scope of Rule 553 points to informal rulemaking, a date deadline is unrelated to formality, and merely requiring a hearing without an on-the-record process does not meet formal rulemaking.