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Federal Agencies Ordered to Create Regulatory Reform Teams

Tuesday, February 28, 2017
Sandler, Travis & Rosenberg Trade Report

President Trump issued Feb. 24 an executive order directing federal agencies to take additional actions as part of an effort to lower regulatory burdens on U.S. businesses. This order follows previous directives freezing the issuance of new regulations for 60 days and ordering agencies to eliminate two regulations for every new regulation proposed.

Under the new EO each federal agency will have to designate within 60 days a regulatory reform officer responsible for overseeing the implementation of regulatory reform initiatives and policies, including the termination of programs and activities that derive from or implement EOs, guidance documents, policy memoranda, rule interpretations, and similar documents that have been rescinded.

Each agency will also have to establish a regulatory reform task force to evaluate existing regulations (using input from significantly affected entities including small businesses and trade associations) and make recommendations on whether they should be repealed, replaced, or modified. At a minimum each task force must attempt to identify regulations that (1) eliminate jobs or inhibit job creation, (2) are outdated, unnecessary, or ineffective, (3) impose costs that exceed benefits, (4) create a serious inconsistency or otherwise interfere with regulatory reform initiatives and policies, (5) rely in whole or in part on data, information, or methods that are not publicly available or are insufficiently transparent, or (6) derive from or implement EOs or other presidential directives that have been subsequently rescinded or substantially modified. Each task force must report on its progress within 90 days and at regular intervals thereafter.

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