The House Small Business Committee passed legislation that requires federal agencies to analyze and limit the impact of their regulatory action for small businesses.
Specifically, the Prove It Act (H.R. 7198) would do several things, including, create a way for small businesses to raise concerns when regulators do not consider both the direct and indirect costs their regulations place on them. In addition, it would allow small businesses to ask their chief advocate in government to review agencies’ work and make the government prove they are fully compliant with already existing laws.
Further, if regulators fail to comply with this review process, then small businesses will be exempt from the agency’s regulations altogether. Finally, it would ensure that small businesses can easily access preexisting guidance documents online and create a way for small businesses to directly raise questions or concerns with their regulators.
The bipartisan bill was originally introduced by U.S. Reps. Brad Finstad (R-MN), Yadira Caraveo (D-CO), and Nathaniel Moran (R-TX).
“I have heard from entrepreneurs and small business owners around southern Minnesota about the unprecedented challenges they are facing due to burdensome federal regulations,” Finstad said. “The Prove It Act would give hard-working American small business owners a voice in the process by preventing future executive overreach and requiring government agencies to assess the impact that proposed regulations would have on the business community. I thank my colleagues in the House Small Business Committee for supporting this bipartisan legislation, and I look forward to its consideration on the House Floor.”
U.S. Sen. Joni Ernst (R-IA) introduced companion legislation in the U.S. Senate.