What is the purpose of a basis in the basis-and-purpose statement?

• A. To identify the factual and policy rationale and the statutory authority for the rule.
• B. To provide the public with a detailed budget.
• C. To outline the agency's internal staff assignments.
• D. To describe unrelated legislative history.

Answer: (A)

The basis-and-purpose statement is meant to tie the rule to its real-world justification and legal grounding. It explains the facts or conditions that prompt the rule (the factual basis) and the policy aims the rule intends to achieve (the policy rationale), and it identifies the statutory authority authorizing the rule. This combination shows why the rule is needed and that the agency is acting within its legal powers, providing a clear basis for public understanding and for judicial review. Other options would focus on budgeting, internal staffing, or unrelated legislative history, none of which explain why the rule is necessary or what authority supports it.