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From Ballotpedia
The correct answer was False.
Agency use of formal rulemaking has drastically declined since the U.S. Supreme Court's 1973 decision in United States v. Florida East Coast Railway. The case held that formal rulemaking is only required when a governing statute calls for a hearing, in its words, "on the record." Since the Florida East Coast Railway decision, agencies have increased the use of informal adjudication, which now makes up nearly 90 percent of adjudication proceedings.
