1 | 1 | | I |
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2 | 2 | | 119THCONGRESS |
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3 | 3 | | 1 |
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4 | 4 | | STSESSION H. R. 1163 |
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5 | 5 | | To amend title 5, United States Code, to require greater transparency for |
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6 | 6 | | Federal regulatory decisions that impact small businesses, and for other |
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7 | 7 | | purposes. |
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8 | 8 | | IN THE HOUSE OF REPRESENTATIVES |
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9 | 9 | | FEBRUARY10, 2025 |
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10 | 10 | | Mr. F |
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11 | 11 | | INSTAD(for himself, Ms. HAGEMAN, Mr. MORAN, Ms. SALAZAR, Mr. |
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12 | 12 | | M |
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13 | 13 | | EUSER, Mr. NUNNof Iowa, Mr. STEIL, and Mr. STAUBER) introduced |
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14 | 14 | | the following bill; which was referred to the Committee on the Judiciary, |
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15 | 15 | | and in addition to the Committee on Small Business, for a period to be |
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16 | 16 | | subsequently determined by the Speaker, in each case for consideration |
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17 | 17 | | of such provisions as fall within the jurisdiction of the committee con- |
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18 | 18 | | cerned |
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19 | 19 | | A BILL |
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20 | 20 | | To amend title 5, United States Code, to require greater |
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21 | 21 | | transparency for Federal regulatory decisions that impact |
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22 | 22 | | small businesses, and for other purposes. |
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23 | 23 | | Be it enacted by the Senate and House of Representa-1 |
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24 | 24 | | tives of the United States of America in Congress assembled, 2 |
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25 | 25 | | SECTION 1. SHORT TITLE. 3 |
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26 | 26 | | This Act may be cited as the ‘‘Prove It Act of 2025’’. 4 |
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27 | 27 | | SEC. 2. INITIAL REGULATORY FLEXIBILITY ANALYSIS. 5 |
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28 | 28 | | (a) I |
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29 | 29 | | NGENERAL.—Chapter 6 of title 5, United 6 |
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30 | 30 | | States Code, is amended— 7 |
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32 | 32 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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33 | 33 | | •HR 1163 IH |
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34 | 34 | | (1) in section 603(b)— 1 |
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35 | 35 | | (A) in paragraph (5), by striking the pe-2 |
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36 | 36 | | riod at the end and inserting ‘‘; and’’; and 3 |
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37 | 37 | | (B) by adding at the end the following: 4 |
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38 | 38 | | ‘‘(6) where feasible, any reasonably foreseeable 5 |
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39 | 39 | | potential indirect costs the proposed rule may im-6 |
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40 | 40 | | pose on small entities, including small entities 7 |
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41 | 41 | | that— 8 |
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42 | 42 | | ‘‘(A) purchase products or services from, 9 |
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43 | 43 | | sell products or services to, or otherwise con-10 |
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44 | 44 | | duct business with entities directly regulated by 11 |
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45 | 45 | | the rule; 12 |
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46 | 46 | | ‘‘(B) are directly regulated by other gov-13 |
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47 | 47 | | ernmental entities as a result of the rule; or 14 |
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48 | 48 | | ‘‘(C) are not directly regulated by the 15 |
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49 | 49 | | agency as a result of the rule but are otherwise 16 |
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50 | 50 | | subject to other agency rules as a result of the 17 |
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51 | 51 | | rule.’’; 18 |
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52 | 52 | | (2) in section 605(b), by striking ‘‘The agency’’ 19 |
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53 | 53 | | and inserting ‘‘Not later than 10 days after com-20 |
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54 | 54 | | pleting the certification described in this subsection, 21 |
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55 | 55 | | the agency’’; and 22 |
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56 | 56 | | (3) by inserting after section 605 the following: 23 |
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58 | 58 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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59 | 59 | | •HR 1163 IH |
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60 | 60 | | ‘‘§ 605A. Review procedures relating to initial regu-1 |
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61 | 61 | | latory flexibility analysis certifications 2 |
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62 | 62 | | ‘‘(a) F |
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63 | 63 | | ILING APETITIONTOREVIEWAGENCYCER-3 |
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64 | 64 | | TIFICATION OF APROPOSEDRULE.— 4 |
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65 | 65 | | ‘‘(1) I |
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66 | 66 | | N GENERAL.—Any small entity, group of 5 |
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67 | 67 | | small entities, or organization representing the inter-6 |
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68 | 68 | | ests of small entities may petition the Chief Counsel 7 |
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69 | 69 | | for Advocacy of the Small Business Administration 8 |
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70 | 70 | | (in this section referred to as the ‘Chief Counsel’) to 9 |
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71 | 71 | | review a certification published under section 605(b) 10 |
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72 | 72 | | that a proposed rule will not, if promulgated, have 11 |
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73 | 73 | | a significant economic impact on a substantial num-12 |
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74 | 74 | | ber of small entities. 13 |
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75 | 75 | | ‘‘(2) F |
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76 | 76 | | ORM.—The Chief Counsel shall— 14 |
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77 | 77 | | ‘‘(A) determine the method, timing, and 15 |
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78 | 78 | | form of disseminating a petition described in 16 |
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79 | 79 | | paragraph (1); and 17 |
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80 | 80 | | ‘‘(B) display the information described in 18 |
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81 | 81 | | subparagraph (A) on the website of the Office 19 |
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82 | 82 | | of Advocacy of the Small Business Administra-20 |
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83 | 83 | | tion in a conspicuous manner. 21 |
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84 | 84 | | ‘‘(3) C |
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85 | 85 | | ONTENTS.—Each petition described in 22 |
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86 | 86 | | paragraph (1) with respect to a certification pub-23 |
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87 | 87 | | lished under section 605(b) for a proposed rule shall 24 |
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88 | 88 | | clearly and concisely— 25 |
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90 | 90 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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91 | 91 | | •HR 1163 IH |
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92 | 92 | | ‘‘(A) specify the name of the petitioner and 1 |
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93 | 93 | | a telephone number, a mailing address, and an 2 |
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94 | 94 | | email address that the Chief Counsel may use 3 |
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95 | 95 | | to communicate with the petitioner; 4 |
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96 | 96 | | ‘‘(B) if the petitioner is an organization, 5 |
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97 | 97 | | provide additional identifying information, as 6 |
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98 | 98 | | applicable, including the organizational or cor-7 |
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99 | 99 | | porate status of the petitioner, the State of in-8 |
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100 | 100 | | corporation of the petitioner, the registered 9 |
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101 | 101 | | agent of the petitioner, the interest of the peti-10 |
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102 | 102 | | tioner in representing small entities affected by 11 |
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103 | 103 | | the proposed rule and the certification at issue, 12 |
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104 | 104 | | and the name and authority of the individual 13 |
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105 | 105 | | who signed the petition on behalf of the organi-14 |
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106 | 106 | | zational or corporate petitioner; 15 |
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107 | 107 | | ‘‘(C) present the specific problems or 16 |
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108 | 108 | | issues that the petitioner believes should be ad-17 |
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109 | 109 | | dressed or considered through a review of the 18 |
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110 | 110 | | certification, such as— 19 |
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111 | 111 | | ‘‘(i) any specific circumstances in 20 |
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112 | 112 | | which the determination of the certification 21 |
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113 | 113 | | that the proposed rule will not, if promul-22 |
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114 | 114 | | gated, have a significant economic impact 23 |
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115 | 115 | | on a substantial number of small entities is 24 |
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116 | 116 | | incorrect, incomplete, or inadequate; or 25 |
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118 | 118 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
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119 | 119 | | •HR 1163 IH |
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120 | 120 | | ‘‘(ii) why the proposed rule would, if 1 |
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121 | 121 | | promulgated, have a significant economic 2 |
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122 | 122 | | impact on a substantial number of small 3 |
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123 | 123 | | entities; 4 |
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124 | 124 | | ‘‘(D) cite, enclose, or reference any rel-5 |
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125 | 125 | | evant and non-protected or confidential tech-6 |
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126 | 126 | | nical, scientific, or other data or information 7 |
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127 | 127 | | supporting any assertion of the problems or 8 |
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128 | 128 | | issues with the certification; 9 |
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129 | 129 | | ‘‘(E) present a proposed solution to the 10 |
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130 | 130 | | problems or issues raised in the petition, includ-11 |
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131 | 131 | | ing potential regulatory or compliance alter-12 |
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132 | 132 | | natives to the proposed rule; 13 |
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133 | 133 | | ‘‘(F) provide an analysis, discussion, or ar-14 |
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134 | 134 | | gument that explains how the proposed solution 15 |
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135 | 135 | | described in subparagraph (E) solves the prob-16 |
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136 | 136 | | lems or issues raised in the petition; and 17 |
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137 | 137 | | ‘‘(G) cite, enclose, or reference any other 18 |
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138 | 138 | | publicly available data or information sup-19 |
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139 | 139 | | porting the proposed solution described in sub-20 |
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140 | 140 | | paragraph (E). 21 |
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141 | 141 | | ‘‘(b) C |
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142 | 142 | | ONSULTATION.— 22 |
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143 | 143 | | ‘‘(1) I |
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144 | 144 | | N GENERAL.—Any entity or organization 23 |
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145 | 145 | | desiring to file a petition under subsection (a) may 24 |
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147 | 147 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
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148 | 148 | | •HR 1163 IH |
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149 | 149 | | request a consultation with the Chief Counsel before 1 |
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150 | 150 | | or after filing the petition. 2 |
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151 | 151 | | ‘‘(2) F |
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152 | 152 | | ORM.—The Chief Counsel shall— 3 |
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153 | 153 | | ‘‘(A) determine the method, timing, and 4 |
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154 | 154 | | form of requesting a consultation with the Chief 5 |
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155 | 155 | | Counsel under paragraph (1); and 6 |
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156 | 156 | | ‘‘(B) display the information described in 7 |
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157 | 157 | | subparagraph (A) on the website of the Office 8 |
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158 | 158 | | of Advocacy of the Small Business Administra-9 |
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159 | 159 | | tion in a conspicuous manner. 10 |
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160 | 160 | | ‘‘(3) L |
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161 | 161 | | IMITATIONS ON ASSISTANCE .—In any 11 |
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162 | 162 | | consultation regarding a petition under paragraph 12 |
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163 | 163 | | (1), the Chief Counsel— 13 |
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164 | 164 | | ‘‘(A) may only— 14 |
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165 | 165 | | ‘‘(i) describe the process for filing, 15 |
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166 | 166 | | docketing, tracking, closing, amending, 16 |
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167 | 167 | | withdrawing, and resolving the petition; 17 |
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168 | 168 | | and 18 |
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169 | 169 | | ‘‘(ii) assist the petitioner to clarify the 19 |
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170 | 170 | | petition so that the Chief Counsel is able 20 |
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171 | 171 | | to understand the issues of concern to the 21 |
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172 | 172 | | petitioner; and 22 |
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173 | 173 | | ‘‘(B) may not advise a petitioner on wheth-23 |
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174 | 174 | | er the petition should be amended or with-24 |
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175 | 175 | | drawn. 25 |
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177 | 177 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
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178 | 178 | | •HR 1163 IH |
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179 | 179 | | ‘‘(c) PRIMAFACIEREVIEW.— 1 |
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180 | 180 | | ‘‘(1) I |
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181 | 181 | | N GENERAL.—Upon receipt of a petition 2 |
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182 | 182 | | filed under this section with respect to the certifi-3 |
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183 | 183 | | cation of a proposed rule, the Chief Counsel shall 4 |
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184 | 184 | | make an initial prima facie determination on the 5 |
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185 | 185 | | merit of the issues raised in the petition as to the 6 |
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186 | 186 | | properness of the certification and whether the pro-7 |
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187 | 187 | | posed rule in question would, if promulgated, have 8 |
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188 | 188 | | a significant economic impact on a substantial num-9 |
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189 | 189 | | ber of small entities. 10 |
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190 | 190 | | ‘‘(2) N |
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191 | 191 | | O FURTHER REVIEW .—If, following the 11 |
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192 | 192 | | prima facie review of a petition under paragraph (1), 12 |
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193 | 193 | | the Chief Counsel determines that the issues raised 13 |
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194 | 194 | | in the petition do not merit further review by the 14 |
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195 | 195 | | Chief Counsel, the Chief Counsel shall, not later 15 |
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196 | 196 | | than 10 days after receipt of the petition, inform the 16 |
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197 | 197 | | petitioner of that determination and the matter shall 17 |
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198 | 198 | | be closed. 18 |
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199 | 199 | | ‘‘(3) F |
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200 | 200 | | URTHER REVIEW .—If, following the 19 |
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201 | 201 | | prima facie review of a petition under paragraph (1), 20 |
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202 | 202 | | the Chief Counsel determines that the issues raised 21 |
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203 | 203 | | in the petition do merit further review by the Chief 22 |
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204 | 204 | | Counsel, the Chief Counsel shall, not later than 10 23 |
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205 | 205 | | days after receipt of the petition, inform the peti-24 |
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206 | 206 | | tioner and the agency that promulgated the pro-25 |
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208 | 208 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 |
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209 | 209 | | •HR 1163 IH |
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210 | 210 | | posed rule that the Chief Counsel shall conduct a 1 |
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211 | 211 | | full review of the certification and proposed rule to 2 |
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212 | 212 | | which the petition relates under subsection (d). 3 |
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213 | 213 | | ‘‘(d) F |
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214 | 214 | | ULLREVIEW.— 4 |
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215 | 215 | | ‘‘(1) C |
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216 | 216 | | ONSIDERATIONS; MEETING.—In con-5 |
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217 | 217 | | ducting a full review under this subsection with re-6 |
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218 | 218 | | spect to the certification made under section 605(b), 7 |
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219 | 219 | | the Chief Counsel shall— 8 |
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220 | 220 | | ‘‘(A) consider— 9 |
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221 | 221 | | ‘‘(i) whether the agency that promul-10 |
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222 | 222 | | gated the proposed rule correctly deter-11 |
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223 | 223 | | mined which small entities will be affected 12 |
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224 | 224 | | by the proposed rule; 13 |
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225 | 225 | | ‘‘(ii) whether the agency considered 14 |
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226 | 226 | | adequate economic data to assess whether 15 |
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227 | 227 | | the proposed rule will have a significant 16 |
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228 | 228 | | impact on a substantial number of small 17 |
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229 | 229 | | entities; and 18 |
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230 | 230 | | ‘‘(iii) the economic implications of the 19 |
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231 | 231 | | proposed rule; and 20 |
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232 | 232 | | ‘‘(B) convene a virtual or in-person meet-21 |
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233 | 233 | | ing between the Chief Counsel, the petitioner, 22 |
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234 | 234 | | representatives of the agency that promulgated 23 |
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235 | 235 | | the proposed rule who are determined appro-24 |
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236 | 236 | | priate by the Chief Counsel, and the Adminis-25 |
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238 | 238 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
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239 | 239 | | •HR 1163 IH |
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240 | 240 | | trator of the Office of Information and Regu-1 |
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241 | 241 | | latory Affairs to— 2 |
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242 | 242 | | ‘‘(i) provide positions and support for 3 |
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243 | 243 | | those positions regarding the certification 4 |
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244 | 244 | | of the proposed rule; and 5 |
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245 | 245 | | ‘‘(ii) allow the Chief Counsel to ask 6 |
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246 | 246 | | questions as the Chief Counsel determines 7 |
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247 | 247 | | necessary to make a final determination as 8 |
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248 | 248 | | to the validity of the certification. 9 |
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249 | 249 | | ‘‘(2) P |
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250 | 250 | | UBLICATION.—Not later than 30 days 10 |
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251 | 251 | | after the date on which the Chief Counsel begins a 11 |
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252 | 252 | | full review of a certification made with respect to a 12 |
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253 | 253 | | proposed rule under paragraph (1), the Chief Coun-13 |
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254 | 254 | | sel shall submit to the petitioner and the agency that 14 |
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255 | 255 | | promulgated the proposed rule, and publish in the 15 |
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256 | 256 | | Federal Register and on the website of the Office of 16 |
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257 | 257 | | Advocacy of the Small Business Administration, the 17 |
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258 | 258 | | results of the review conducted under paragraph (1). 18 |
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259 | 259 | | ‘‘(3) R |
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260 | 260 | | EQUIREMENT TO PERFORM ANALYSES .— 19 |
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261 | 261 | | If, after a full review of a certification made with re-20 |
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262 | 262 | | spect to a proposed rule under paragraph (1), the 21 |
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263 | 263 | | Chief Counsel determines that the proposed rule 22 |
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264 | 264 | | will, if promulgated, have a significant economic im-23 |
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265 | 265 | | pact on a substantial number of small entities, the 24 |
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266 | 266 | | agency that promulgated the proposed rule shall per-25 |
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268 | 268 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
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269 | 269 | | •HR 1163 IH |
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270 | 270 | | form an initial regulatory flexibility analysis and a 1 |
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271 | 271 | | final regulatory flexibility analysis for the proposed 2 |
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272 | 272 | | rule under sections 603 and 604, respectively. 3 |
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273 | 273 | | ‘‘(4) P |
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274 | 274 | | ENALTY.—If an agency fails to attend 4 |
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275 | 275 | | the required meeting under paragraph (1)(B) or in 5 |
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276 | 276 | | any other way fails to assist the Chief Counsel in a 6 |
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277 | 277 | | full review under paragraph (1) with respect to a 7 |
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278 | 278 | | proposed rule of the agency, as determined by the 8 |
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279 | 279 | | Chief Counsel, the final rule shall not apply to small 9 |
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280 | 280 | | entities. 10 |
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281 | 281 | | ‘‘(5) J |
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282 | 282 | | UDICIAL REVIEW.—For purposes of judi-11 |
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283 | 283 | | cial review under chapter 7 of this title, a certifi-12 |
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284 | 284 | | cation made by an agency under section 605(b) for 13 |
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285 | 285 | | which a petition is filed under subsection (a) shall 14 |
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286 | 286 | | be considered final agency action as of the date on 15 |
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287 | 287 | | which the Chief Counsel— 16 |
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288 | 288 | | ‘‘(A) makes a determination under sub-17 |
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289 | 289 | | section (c)(2) that the issues raised in the peti-18 |
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290 | 290 | | tion do not merit further review; or 19 |
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291 | 291 | | ‘‘(B) publishes the results of a full review 20 |
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292 | 292 | | of the certification under paragraph (1).’’. 21 |
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293 | 293 | | (b) T |
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294 | 294 | | ECHNICAL AND CONFORMINGAMENDMENT.— 22 |
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295 | 295 | | The table of sections for chapter 6 of title 5, United States 23 |
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296 | 296 | | Code, is amended by inserting after the item relating to 24 |
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297 | 297 | | section 605 the following: 25 |
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300 | 300 | | •HR 1163 IH |
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301 | 301 | | ‘‘605A. Review procedures relating to initial regulatory flexibility analysis certifi- |
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302 | 302 | | cations.’’. |
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303 | 303 | | SEC. 3. PUBLICATION OF GUIDANCE. |
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304 | 304 | | 1 |
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305 | 305 | | Section 609 of title 5, United States Code, is amend-2 |
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306 | 306 | | ed by adding at the end the following: 3 |
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307 | 307 | | ‘‘(f) With respect to any rule that an agency deter-4 |
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308 | 308 | | mines is likely to have a significant economic impact on 5 |
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309 | 309 | | a substantial number of small entities, the head of the 6 |
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310 | 310 | | agency shall, on regulations.gov or any similar internet 7 |
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311 | 311 | | website— 8 |
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312 | 312 | | ‘‘(1) publish all guidance documents and other 9 |
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313 | 313 | | relevant documents, as determined by the agency, 10 |
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314 | 314 | | including any updated guidance documents that set 11 |
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315 | 315 | | forth interpretations of the rule; and 12 |
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316 | 316 | | ‘‘(2) allow for comments on the documents de-13 |
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317 | 317 | | scribed in paragraph (1) to ensure that small enti-14 |
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318 | 318 | | ties may access and provide feedback on those docu-15 |
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319 | 319 | | ments.’’. 16 |
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320 | 320 | | SEC. 4. REVIEW PROCEDURES FOR SECTION 610 PERIODIC 17 |
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321 | 321 | | REVIEW OF RULES. 18 |
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322 | 322 | | (a) I |
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323 | 323 | | NGENERAL.—Section 610 of title 5, United 19 |
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324 | 324 | | States Code, is amended— 20 |
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325 | 325 | | (1) in subsection (b)— 21 |
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326 | 326 | | (A) in the matter preceding paragraph (1), 22 |
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327 | 327 | | by striking ‘‘the following factors’’; 23 |
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330 | 330 | | •HR 1163 IH |
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331 | 331 | | (B) in paragraph (4), by striking ‘‘and’’ at 1 |
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332 | 332 | | the end; 2 |
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333 | 333 | | (C) in paragraph (5), by striking the pe-3 |
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334 | 334 | | riod at the end and inserting ‘‘; and’’; and 4 |
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335 | 335 | | (D) by adding at the end the following: 5 |
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336 | 336 | | ‘‘(6) any indirect costs described in the initial 6 |
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337 | 337 | | regulatory flexibility analysis under section 7 |
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338 | 338 | | 603(b)(6), and any other indirect costs that may 8 |
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339 | 339 | | have arisen during the 10-year period described in 9 |
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340 | 340 | | subsection (a).’’; and 10 |
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341 | 341 | | (2) by adding at the end the following: 11 |
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342 | 342 | | ‘‘(d) If an agency fails to conduct a review of a rule 12 |
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343 | 343 | | as required under this section within the 10-year period 13 |
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344 | 344 | | described in subsection (a)— 14 |
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345 | 345 | | ‘‘(1) the Chief Counsel for Advocacy of the 15 |
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346 | 346 | | Small Business Administration shall notify the agen-16 |
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347 | 347 | | cy that the rule has ceased to be effective; 17 |
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348 | 348 | | ‘‘(2) the agency shall publish in the Federal 18 |
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349 | 349 | | Register a notification that the rule has ceased to be 19 |
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350 | 350 | | effective, and solicit comments for why the rule 20 |
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351 | 351 | | should be reinstated; and 21 |
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352 | 352 | | ‘‘(3) if, based on the comments received under 22 |
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353 | 353 | | paragraph (2), the agency determines that the rule 23 |
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354 | 354 | | should be reinstated— 24 |
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357 | 357 | | •HR 1163 IH |
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358 | 358 | | ‘‘(A) the agency shall have 180 days begin-1 |
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359 | 359 | | ning on the date of that determination to com-2 |
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360 | 360 | | plete the review of the rule under this section; 3 |
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361 | 361 | | and 4 |
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362 | 362 | | ‘‘(B) upon completion of the review under 5 |
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363 | 363 | | subparagraph (A), the rule shall be reinstated, 6 |
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364 | 364 | | notwithstanding the notice and comment rule-7 |
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365 | 365 | | making procedures under section 553 of this 8 |
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366 | 366 | | title.’’. 9 |
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367 | 367 | | (b) A |
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368 | 368 | | PPLICATION.—The amendment made by sub-10 |
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369 | 369 | | section (a)(2) shall apply with respect to any final rule 11 |
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370 | 370 | | issued by an agency— 12 |
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371 | 371 | | (1) during the 5-year period preceding the date 13 |
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372 | 372 | | of enactment of this Act; or 14 |
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373 | 373 | | (2) on or after the date of enactment of this 15 |
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374 | 374 | | Act. 16 |
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375 | 375 | | SEC. 5. NO ADDITIONAL FUNDS. 17 |
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376 | 376 | | No additional funds are authorized to be appro-18 |
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377 | 377 | | priated for the purpose of carrying out this Act or the 19 |
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378 | 378 | | amendments made by this Act. 20 |
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379 | 379 | | Æ |
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380 | 380 | | VerDate Sep 11 2014 17:18 Mar 08, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6301 E:\BILLS\H1163.IH H1163 |
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381 | 381 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
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