Treasury Extends Comment Period for Regulations Review
The impetus for the Department of the Treasury’s request for comments and information comes from two Executive Orders issued by President Trump earlier this year. On January 30, 2017, President Trump issued Executive Order 13771, “Reducing Regulation and Controlling Regulatory Costs,” which notes that the policy of the Executive Branch is to be prudent and financially responsible in the expenditure of funds, from both public and private sources, and that it is essential to manage the costs associated with complying with federal regulations. Further, on February 24, 2017, President Trump issued Executive Order 13777, “Enforcing the Regulatory Reform Agenda,” which is intended to alleviate unnecessary regulatory burdens placed on the American people. Executive Order 13777 directs each Agency to establish a Regulatory Reform Task Force (RRTF) to evaluate existing regulations and identify those that may merit repeal, replacement, or modification. Section 3(d) of the Executive Order provides that, at a minimum, each RRTF must attempt to identify regulations that:
- Eliminate jobs or inhibit job creation;
- Are outdated, unnecessary, or ineffective;
- Impose costs that exceed benefits;
- Create a serious inconsistency or otherwise interfere with regulatory reform initiatives and policies;
- Are inconsistent with the requirements of the Information Quality Act or the guidance issued pursuant to that Act; or
- Derive from or implement Executive Orders or other Presidential directives that have been subsequently rescinded or substantially modified.
It is still too early to gauge what will result from the Department of the Treasury’s initiative to review existing regulations to identify those that may be modified, repealed, or replaced. However, the RFI clearly presents an opportunity for alcohol beverage industry members to make their case to the Department for changing onerous regulations before what will be a newly established venue – i.e., the Department’s Regulatory Reform Task Force, which could very well be inclined to act in addressing burdensome regulations and other regulatory inequities of concern to industry. Further, as noted above, we anticipate that various members of the alcohol beverage industry will be submitting substantive comments in support of reducing regulatory burdens before the comment period closes on October 31, 2017.
Arent Fox's Alcohol Beverage group will continue to monitor developments involving the Treasury’s request for comments and information to help identify existing regulations that may be appropriate to modify, repeal, or replace. If you have any questions, please contact James Ravitz, Michael Kelly, James Hartten, or the Arent Fox professional who usually handles your matters.