U.S. Sen. Joni Ernst (R-IA) introduced legislation on Feb. 10 that would require federal agencies to demonstrate that new regulations comply with existing laws, while considering the costs they put on small businesses.
The legislation, the Prove It Act, would direct federal agencies to prove that new regulations are legal, and not harmful, Ernst said. Aimed at regulations enacted during the administration of President Joe Biden, the legislation is geared to disrupt the “bloated bureaucracy,” she said.
“As chair of the Senate Committee on Small Business and Entrepreneurship, unleashing Main Street by slashing red tape is a top priority,” Ernst said. “We are curbing the bloated bureaucracy and empowering job creators to innovate and lead us forward. If Washington thinks more regulations are needed, it will have to prove it.”
The bill, S. 495, would create a way for small businesses to raise concerns over regulations’ direct and indirect costs to them, as well as allow them to ask their advocates in government to make sure that government regulators are fully compliant with existing laws. Additionally, the legislation would exempt small businesses from regulations if the regulators fail to comply with the review process and allow small business to access pre-existing guidance documents online.
Companion legislation is being introduced in the U.S. House of Representatives by U.S. Rep. Brad Finstad (R-MN).
“As a member of the House Committee on Small Business, I am committed to protecting Main Street business owners in southern Minnesota from costly and burdensome regulations,” Finstad said. “The Prove It Act, which passed the House of Representatives in the 118th Congress with bipartisan support, is commonsense legislation that gives small business owners a seat at the regulatory table and holds federal agencies accountable for the impacts of their regulations.”