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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1163 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1163
To amend title 5, United States Code, to require greater transparency
for Federal regulatory decisions that impact small businesses, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2025
Mr. Finstad (for himself, Ms. Hageman, Mr. Moran, Ms. Salazar, Mr.
Meuser, Mr. Nunn of Iowa, Mr. Steil, and Mr. Stauber) introduced the
following bill; which was referred to the Committee on the Judiciary,
and in addition to the Committee on Small Business, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to require greater transparency
for Federal regulatory decisions that impact small businesses, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Prove It Act of 2025''.
SEC. 2. INITIAL REGULATORY FLEXIBILITY ANALYSIS.
(a) In General.--Chapter 6 of title 5, United States Code, is
amended--
(1) in section 603(b)--
(A) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(B) by adding at the end the following:
``(6) where feasible, any reasonably foreseeable potential
indirect costs the proposed rule may impose on small entities,
including small entities that--
``(A) purchase products or services from, sell
products or services to, or otherwise conduct business
with entities directly regulated by the rule;
``(B) are directly regulated by other governmental
entities as a result of the rule; or
``(C) are not directly regulated by the agency as a
result of the rule but are otherwise subject to other
agency rules as a result of the rule.'';
(2) in section 605(b), by striking ``The agency'' and
inserting ``Not later than 10 days after completing the
certification described in this subsection, the agency''; and
(3) by inserting after section 605 the following:
``Sec. 605A. Review procedures relating to initial regulatory
flexibility analysis certifications
``(a) Filing a Petition To Review Agency Certification of a
Proposed Rule.--
``(1) In general.--Any small entity, group of small
entities, or organization representing the interests of small
entities may petition the Chief Counsel for Advocacy of the
Small Business Administration (in this section referred to as
the `Chief Counsel') to review a certification published under
section 605(b) that a proposed rule will not, if promulgated,
have a significant economic impact on a substantial number of
small entities.
``(2) Form.--The Chief Counsel shall--
``(A) determine the method, timing, and form of
disseminating a petition described in paragraph (1);
and
``(B) display the information described in
subparagraph (A) on the website of the Office of
Advocacy of the Small Business Administration in a
conspicuous manner.
``(3) Contents.--Each petition described in paragraph (1)
with respect to a certification published under section 605(b)
for a proposed rule shall clearly and concisely--
``(A) specify the name of the petitioner and a
telephone number, a mailing address, and an email
address that the Chief Counsel may use to communicate
with the petitioner;
``(B) if the petitioner is an organization, provide
additional identifying information, as applicable,
including the organizational or corporate status of the
petitioner, the State of incorporation of the
petitioner, the registered agent of the petitioner, the
interest of the petitioner in representing small
entities affected by the proposed rule and the
certification at issue, and the name and authority of
the individual who signed the petition on behalf of the
organizational or corporate petitioner;
``(C) present the specific problems or issues that
the petitioner believes should be addressed or
considered through a review of the certification, such
as--
``(i) any specific circumstances in which
the determination of the certification that the
proposed rule will not, if promulgated, have a
significant economic impact on a substantial
number of small entities is incorrect,
incomplete, or inadequate; or
``(ii) why the proposed rule would, if
promulgated, have a significant economic impact
on a substantial number of small entities;
``(D) cite, enclose, or reference any relevant and
non-protected or confidential technical, scientific, or
other data or information supporting any assertion of
the problems or issues with the certification;
``(E) present a proposed solution to the problems
or issues raised in the petition, including potential
regulatory or compliance alternatives to the proposed
rule;
``(F) provide an analysis, discussion, or argument
that explains how the proposed solution described in
subparagraph (E) solves the problems or issues raised
in the petition; and
``(G) cite, enclose, or reference any other
publicly available data or information supporting the
proposed solution described in subparagraph (E).
``(b) Consultation.--
``(1) In general.--Any entity or organization desiring to
file a petition under subsection (a) may request a consultation
with the Chief Counsel before or after filing the petition.
``(2) Form.--The Chief Counsel shall--
``(A) determine the method, timing, and form of
requesting a consultation with the Chief Counsel under
paragraph (1); and
``(B) display the information described in
subparagraph (A) on the website of the Office of
Advocacy of the Small Business Administration in a
conspicuous manner.
``(3) Limitations on assistance.--In any consultation
regarding a petition under paragraph (1), the Chief Counsel--
``(A) may only--
``(i) describe the process for filing,
docketing, tracking, closing, amending,
withdrawing, and resolving the petition; and
``(ii) assist the petitioner to clarify the
petition so that the Chief Counsel is able to
understand the issues of concern to the
petitioner; and
``(B) may not advise a petitioner on whether the
petition should be amended or withdrawn.
``(c) Prima Facie Review.--
``(1) In general.--Upon receipt of a petition filed under
this section with respect to the certification of a proposed
rule, the Chief Counsel shall make an initial prima facie
determination on the merit of the issues raised in the petition
as to the properness of the certification and whether the
proposed rule in question would, if promulgated, have a
significant economic impact on a substantial number of small
entities.
``(2) No further review.--If, following the prima facie
review of a petition under paragraph (1), the Chief Counsel
determines that the issues raised in the petition do not merit
further review by the Chief Counsel, the Chief Counsel shall,
not later than 10 days after receipt of the petition, inform
the petitioner of that determination and the matter shall be
closed.
``(3) Further review.--If, following the prima facie review
of a petition under paragraph (1), the Chief Counsel determines
that the issues raised in the petition do merit further review
by the Chief Counsel, the Chief Counsel shall, not later than
10 days after receipt of the petition, inform the petitioner
and the agency that promulgated the proposed rule that the
Chief Counsel shall conduct a full review of the certification
and proposed rule to which the petition relates under
subsection (d).
``(d) Full Review.--
``(1) Considerations; meeting.--In conducting a full review
under this subsection with respect to the certification made
under section 605(b), the Chief Counsel shall--
``(A) consider--
``(i) whether the agency that promulgated
the proposed rule correctly determined which
small entities will be affected by the proposed
rule;
``(ii) whether the agency considered
adequate economic data to assess whether the
proposed rule will have a significant impact on
a substantial number of small entities; and
``(iii) the economic implications of the
proposed rule; and
``(B) convene a virtual or in-person meeting
between the Chief Counsel, the petitioner,
representatives of the agency that promulgated the
proposed rule who are determined appropriate by the
Chief Counsel, and the Administrator of the Office of
Information and Regulatory Affairs to--
``(i) provide positions and support for
those positions regarding the certification of
the proposed rule; and
``(ii) allow the Chief Counsel to ask
questions as the Chief Counsel determines
necessary to make a final determination as to
the validity of the certification.
``(2) Publication.--Not later than 30 days after the date
on which the Chief Counsel begins a full review of a
certification made with respect to a proposed rule under
paragraph (1), the Chief Counsel shall submit to the petitioner
and the agency that promulgated the proposed rule, and publish
in the Federal Register and on the website of the Office of
Advocacy of the Small Business Administration, the results of
the review conducted under paragraph (1).
``(3) Requirement to perform analyses.--If, after a full
review of a certification made with respect to a proposed rule
under paragraph (1), the Chief Counsel determines that the
proposed rule will, if promulgated, have a significant economic
impact on a substantial number of small entities, the agency
that promulgated the proposed rule shall perform an initial
regulatory flexibility analysis and a final regulatory
flexibility analysis for the proposed rule under sections 603
and 604, respectively.
``(4) Penalty.--If an agency fails to attend the required
meeting under paragraph (1)(B) or in any other way fails to
assist the Chief Counsel in a full review under paragraph (1)
with respect to a proposed rule of the agency, as determined by
the Chief Counsel, the final rule shall not apply to small
entities.
``(5) Judicial review.--For purposes of judicial review
under chapter 7 of this title, a certification made by an
agency under section 605(b) for which a petition is filed under
subsection (a) shall be considered final agency action as of
the date on which the Chief Counsel--
``(A) makes a determination under subsection (c)(2)
that the issues raised in the petition do not merit
further review; or
``(B) publishes the results of a full review of the
certification under paragraph (1).''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 6 of title 5, United States Code, is amended by inserting after
the item relating to section 605 the following:
``605A. Review procedures relating to initial regulatory flexibility
analysis certifications.''.
SEC. 3. PUBLICATION OF GUIDANCE.
Section 609 of title 5, United States Code, is amended by adding at
the end the following:
``(f) With respect to any rule that an agency determines is likely
to have a significant economic impact on a substantial number of small
entities, the head of the agency shall, on regulations.gov or any
similar internet website--
``(1) publish all guidance documents and other relevant
documents, as determined by the agency, including any updated
guidance documents that set forth interpretations of the rule;
and
``(2) allow for comments on the documents described in
paragraph (1) to ensure that small entities may access and
provide feedback on those documents.''.
SEC. 4. REVIEW PROCEDURES FOR SECTION 610 PERIODIC REVIEW OF RULES.
(a) In General.--Section 610 of title 5, United States Code, is
amended--
(1) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``the following factors'';
(B) in paragraph (4), by striking ``and'' at the
end;
(C) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(6) any indirect costs described in the initial
regulatory flexibility analysis under section 603(b)(6), and
any other indirect costs that may have arisen during the 10-
year period described in subsection (a).''; and
(2) by adding at the end the following:
``(d) If an agency fails to conduct a review of a rule as required
under this section within the 10-year period described in subsection
(a)--
``(1) the Chief Counsel for Advocacy of the Small Business
Administration shall notify the agency that the rule has ceased
to be effective;
``(2) the agency shall publish in the Federal Register a
notification that the rule has ceased to be effective, and
solicit comments for why the rule should be reinstated; and
``(3) if, based on the comments received under paragraph
(2), the agency determines that the rule should be reinstated--
``(A) the agency shall have 180 days beginning on
the date of that determination to complete the review
of the rule under this section; and
``(B) upon completion of the review under
subparagraph (A), the rule shall be reinstated,
notwithstanding the notice and comment rulemaking
procedures under section 553 of this title.''.
(b) Application.--The amendment made by subsection (a)(2) shall
apply with respect to any final rule issued by an agency--
(1) during the 5-year period preceding the date of
enactment of this Act; or
(2) on or after the date of enactment of this Act.
SEC. 5. NO ADDITIONAL FUNDS.
No additional funds are authorized to be appropriated for the
purpose of carrying out this Act or the amendments made by this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 15 - 11.
Committee Consideration and Mark-up Session Held
Reported (Amended) by the Committee on Small Business. H. Rept. 119-108, Part I.
Reported (Amended) by the Committee on Small Business. H. Rept. 119-108, Part I.
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 14 - 12.
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