Department of Treasury Scolded in Report on UIGEA Regulation
The Center for Regulatory Effectiveness, an independent agency that reviews regulatory actions and submits their findings to congress for review, has found significant concerns in the proposed regulation for the Unlawful Internet Gambling Enforcement Act (UIGEA).
The report sites that the Department of the Treasury is either unwilling or unable to provide an impact report. This report is required by the Paperwork Reduction Act, and needs to be compiled objectively and supported by research. This has not be done specifically surrounding the small businesses and others that will bear the burden of the proposed regulation in connection with the UIGEA.
The report also sites the Treasury Department for not defining what classifies as an illegal transaction. By having such a broad explanation the illegal transactions could be applied to virtually any online transaction creating more than just online gambling concerns. The UIGEA has been hotly debated since its proposal, and then subsequent enactment. This refinement has never been clarified, even into the regulation process.
The conclusion of the report sites the fact that the Department of the Treasury is not in compliance with the Paperwork Reduction Act in the manner in which it needs to reduce the burden of the small business impact to a practical and reasonable manner. This violation puts the regulations in need of revision and correction. Thus without such the regulations for the UIGEA should be considered ineffective and incomplete.
