| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 495 |
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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 SENATE OF THE UNITED STATES |
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| 9 | 9 | | FEBRUARY10, 2025 |
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| 10 | 10 | | Ms. E |
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| 11 | 11 | | RNSTintroduced the following bill; which was read twice and referred |
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| 12 | 12 | | to the Committee on Homeland Security and Governmental Affairs |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend title 5, United States Code, to require greater |
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| 15 | 15 | | transparency for Federal regulatory decisions that impact |
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| 16 | 16 | | small businesses, and for other purposes. |
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| 17 | 17 | | Be it enacted by the Senate and House of Representa-1 |
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| 18 | 18 | | tives of the United States of America in Congress assembled, 2 |
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| 19 | 19 | | SECTION 1. SHORT TITLE. 3 |
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| 20 | 20 | | This Act may be cited as the ‘‘Prove It Act of 2025’’. 4 |
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| 21 | 21 | | SEC. 2. INITIAL REGULATORY FLEXIBILITY ANALYSIS. 5 |
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| 22 | 22 | | (a) I |
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| 23 | 23 | | NGENERAL.—Chapter 6 of title 5, United 6 |
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| 24 | 24 | | States Code, is amended— 7 |
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| 25 | 25 | | (1) in section 603(b)— 8 |
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| 28 | 28 | | •S 495 IS |
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| 29 | 29 | | (A) in paragraph (5), by striking the pe-1 |
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| 30 | 30 | | riod at the end and inserting ‘‘; and’’; and 2 |
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| 31 | 31 | | (B) by adding at the end the following: 3 |
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| 32 | 32 | | ‘‘(6) where feasible, any reasonably foreseeable 4 |
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| 33 | 33 | | potential indirect costs the proposed rule may im-5 |
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| 34 | 34 | | pose on small entities, including small entities 6 |
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| 35 | 35 | | that— 7 |
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| 36 | 36 | | ‘‘(A) purchase products or services from, 8 |
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| 37 | 37 | | sell products or services to, or otherwise con-9 |
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| 38 | 38 | | duct business with entities directly regulated by 10 |
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| 39 | 39 | | the rule; 11 |
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| 40 | 40 | | ‘‘(B) are directly regulated by other gov-12 |
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| 41 | 41 | | ernmental entities as a result of the rule; or 13 |
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| 42 | 42 | | ‘‘(C) are not directly regulated by the 14 |
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| 43 | 43 | | agency as a result of the rule but are otherwise 15 |
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| 44 | 44 | | subject to other agency rules as a result of the 16 |
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| 45 | 45 | | rule.’’; 17 |
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| 46 | 46 | | (2) in section 605(b), by striking ‘‘The agency’’ 18 |
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| 47 | 47 | | and inserting ‘‘Not later than 10 days after com-19 |
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| 48 | 48 | | pleting the certification described in this subsection, 20 |
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| 49 | 49 | | the agency’’; and 21 |
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| 50 | 50 | | (3) by inserting after section 605 the following: 22 |
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| 53 | 53 | | •S 495 IS |
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| 54 | 54 | | ‘‘§ 605A. Review procedures relating to initial regu-1 |
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| 55 | 55 | | latory flexibility analysis certifications 2 |
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| 56 | 56 | | ‘‘(a) F |
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| 57 | 57 | | ILING APETITIONTOREVIEWAGENCYCER-3 |
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| 58 | 58 | | TIFICATION OF APROPOSEDRULE.— 4 |
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| 59 | 59 | | ‘‘(1) I |
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| 60 | 60 | | N GENERAL.—Any small entity, group of 5 |
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| 61 | 61 | | small entities, or organization representing the inter-6 |
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| 62 | 62 | | ests of small entities may petition the Chief Counsel 7 |
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| 63 | 63 | | for Advocacy of the Small Business Administration 8 |
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| 64 | 64 | | (in this section referred to as the ‘Chief Counsel’) to 9 |
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| 65 | 65 | | review a certification published under section 605(b) 10 |
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| 66 | 66 | | that a proposed rule will not, if promulgated, have 11 |
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| 67 | 67 | | a significant economic impact on a substantial num-12 |
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| 68 | 68 | | ber of small entities. 13 |
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| 69 | 69 | | ‘‘(2) F |
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| 70 | 70 | | ORM.—The Chief Counsel shall— 14 |
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| 71 | 71 | | ‘‘(A) determine the method, timing, and 15 |
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| 72 | 72 | | form of disseminating a petition described in 16 |
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| 73 | 73 | | paragraph (1); and 17 |
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| 74 | 74 | | ‘‘(B) display the information described in 18 |
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| 75 | 75 | | subparagraph (A) on the website of the Office 19 |
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| 76 | 76 | | of Advocacy of the Small Business Administra-20 |
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| 77 | 77 | | tion in a conspicuous manner. 21 |
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| 78 | 78 | | ‘‘(3) C |
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| 79 | 79 | | ONTENTS.—Each petition described in 22 |
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| 80 | 80 | | paragraph (1) with respect to a certification pub-23 |
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| 81 | 81 | | lished under section 605(b) for a proposed rule shall 24 |
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| 82 | 82 | | clearly and concisely— 25 |
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| 85 | 85 | | •S 495 IS |
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| 86 | 86 | | ‘‘(A) specify the name of the petitioner and 1 |
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| 87 | 87 | | a telephone number, a mailing address, and an 2 |
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| 88 | 88 | | email address that the Chief Counsel may use 3 |
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| 89 | 89 | | to communicate with the petitioner; 4 |
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| 90 | 90 | | ‘‘(B) if the petitioner is an organization, 5 |
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| 91 | 91 | | provide additional identifying information, as 6 |
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| 92 | 92 | | applicable, including the organizational or cor-7 |
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| 93 | 93 | | porate status of the petitioner, the State of in-8 |
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| 94 | 94 | | corporation of the petitioner, the registered 9 |
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| 95 | 95 | | agent of the petitioner, the interest of the peti-10 |
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| 96 | 96 | | tioner in representing small entities affected by 11 |
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| 97 | 97 | | the proposed rule and the certification at issue, 12 |
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| 98 | 98 | | and the name and authority of the individual 13 |
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| 99 | 99 | | who signed the petition on behalf of the organi-14 |
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| 100 | 100 | | zational or corporate petitioner; 15 |
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| 101 | 101 | | ‘‘(C) present the specific problems or 16 |
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| 102 | 102 | | issues that the petitioner believes should be ad-17 |
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| 103 | 103 | | dressed or considered through a review of the 18 |
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| 104 | 104 | | certification, such as— 19 |
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| 105 | 105 | | ‘‘(i) any specific circumstances in 20 |
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| 106 | 106 | | which the determination of the certification 21 |
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| 107 | 107 | | that the proposed rule will not, if promul-22 |
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| 108 | 108 | | gated, have a significant economic impact 23 |
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| 109 | 109 | | on a substantial number of small entities is 24 |
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| 110 | 110 | | incorrect, incomplete, or inadequate; or 25 |
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| 113 | 113 | | •S 495 IS |
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| 114 | 114 | | ‘‘(ii) why the proposed rule would, if 1 |
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| 115 | 115 | | promulgated, have a significant economic 2 |
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| 116 | 116 | | impact on a substantial number of small 3 |
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| 117 | 117 | | entities; 4 |
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| 118 | 118 | | ‘‘(D) cite, enclose, or reference any rel-5 |
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| 119 | 119 | | evant and non-protected or confidential tech-6 |
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| 120 | 120 | | nical, scientific, or other data or information 7 |
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| 121 | 121 | | supporting any assertion of the problems or 8 |
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| 122 | 122 | | issues with the certification; 9 |
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| 123 | 123 | | ‘‘(E) present a proposed solution to the 10 |
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| 124 | 124 | | problems or issues raised in the petition, includ-11 |
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| 125 | 125 | | ing potential regulatory or compliance alter-12 |
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| 126 | 126 | | natives to the proposed rule; 13 |
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| 127 | 127 | | ‘‘(F) provide an analysis, discussion, or ar-14 |
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| 128 | 128 | | gument that explains how the proposed solution 15 |
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| 129 | 129 | | described in subparagraph (E) solves the prob-16 |
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| 130 | 130 | | lems or issues raised in the petition; and 17 |
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| 131 | 131 | | ‘‘(G) cite, enclose, or reference any other 18 |
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| 132 | 132 | | publicly available data or information sup-19 |
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| 133 | 133 | | porting the proposed solution described in sub-20 |
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| 134 | 134 | | paragraph (E). 21 |
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| 135 | 135 | | ‘‘(b) C |
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| 136 | 136 | | ONSULTATION.— 22 |
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| 137 | 137 | | ‘‘(1) I |
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| 138 | 138 | | N GENERAL.—Any entity or organization 23 |
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| 139 | 139 | | desiring to file a petition under subsection (a) may 24 |
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| 141 | 141 | | ssavage on LAPJG3WLY3PROD with BILLS 6 |
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| 142 | 142 | | •S 495 IS |
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| 143 | 143 | | request a consultation with the Chief Counsel before 1 |
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| 144 | 144 | | or after filing the petition. 2 |
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| 145 | 145 | | ‘‘(2) F |
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| 146 | 146 | | ORM.—The Chief Counsel shall— 3 |
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| 147 | 147 | | ‘‘(A) determine the method, timing, and 4 |
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| 148 | 148 | | form of requesting a consultation with the Chief 5 |
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| 149 | 149 | | Counsel under paragraph (1); and 6 |
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| 150 | 150 | | ‘‘(B) display the information described in 7 |
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| 151 | 151 | | subparagraph (A) on the website of the Office 8 |
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| 152 | 152 | | of Advocacy of the Small Business Administra-9 |
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| 153 | 153 | | tion in a conspicuous manner. 10 |
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| 154 | 154 | | ‘‘(3) L |
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| 155 | 155 | | IMITATIONS ON ASSISTANCE .—In any 11 |
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| 156 | 156 | | consultation regarding a petition under paragraph 12 |
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| 157 | 157 | | (1), the Chief Counsel— 13 |
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| 158 | 158 | | ‘‘(A) may only— 14 |
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| 159 | 159 | | ‘‘(i) describe the process for filing, 15 |
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| 160 | 160 | | docketing, tracking, closing, amending, 16 |
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| 161 | 161 | | withdrawing, and resolving the petition; 17 |
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| 162 | 162 | | and 18 |
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| 163 | 163 | | ‘‘(ii) assist the petitioner to clarify the 19 |
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| 164 | 164 | | petition so that the Chief Counsel is able 20 |
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| 165 | 165 | | to understand the issues of concern to the 21 |
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| 166 | 166 | | petitioner; and 22 |
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| 167 | 167 | | ‘‘(B) may not advise a petitioner on wheth-23 |
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| 168 | 168 | | er the petition should be amended or with-24 |
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| 169 | 169 | | drawn. 25 |
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| 172 | 172 | | •S 495 IS |
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| 173 | 173 | | ‘‘(c) PRIMAFACIEREVIEW.— 1 |
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| 174 | 174 | | ‘‘(1) I |
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| 175 | 175 | | N GENERAL.—Upon receipt of a petition 2 |
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| 176 | 176 | | filed under this section with respect to the certifi-3 |
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| 177 | 177 | | cation of a proposed rule, the Chief Counsel shall 4 |
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| 178 | 178 | | make an initial prima facie determination on the 5 |
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| 179 | 179 | | merit of the issues raised in the petition as to the 6 |
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| 180 | 180 | | properness of the certification and whether the pro-7 |
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| 181 | 181 | | posed rule in question would, if promulgated, have 8 |
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| 182 | 182 | | a significant economic impact on a substantial num-9 |
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| 183 | 183 | | ber of small entities. 10 |
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| 184 | 184 | | ‘‘(2) N |
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| 185 | 185 | | O FURTHER REVIEW .—If, following the 11 |
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| 186 | 186 | | prima facie review of a petition under paragraph (1), 12 |
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| 187 | 187 | | the Chief Counsel determines that the issues raised 13 |
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| 188 | 188 | | in the petition do not merit further review by the 14 |
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| 189 | 189 | | Chief Counsel, the Chief Counsel shall, not later 15 |
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| 190 | 190 | | than 10 days after receipt of the petition, inform the 16 |
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| 191 | 191 | | petitioner of that determination and the matter shall 17 |
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| 192 | 192 | | be closed. 18 |
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| 193 | 193 | | ‘‘(3) F |
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| 194 | 194 | | URTHER REVIEW .—If, following the 19 |
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| 195 | 195 | | prima facie review of a petition under paragraph (1), 20 |
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| 196 | 196 | | the Chief Counsel determines that the issues raised 21 |
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| 197 | 197 | | in the petition do merit further review by the Chief 22 |
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| 198 | 198 | | Counsel, the Chief Counsel shall, not later than 10 23 |
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| 199 | 199 | | days after receipt of the petition, inform the peti-24 |
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| 200 | 200 | | tioner and the agency that promulgated the pro-25 |
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| 202 | 202 | | ssavage on LAPJG3WLY3PROD with BILLS 8 |
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| 203 | 203 | | •S 495 IS |
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| 204 | 204 | | posed rule that the Chief Counsel shall conduct a 1 |
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| 205 | 205 | | full review of the certification and proposed rule to 2 |
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| 206 | 206 | | which the petition relates under subsection (d). 3 |
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| 207 | 207 | | ‘‘(d) F |
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| 208 | 208 | | ULLREVIEW.— 4 |
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| 209 | 209 | | ‘‘(1) C |
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| 210 | 210 | | ONSIDERATIONS; MEETING.—In con-5 |
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| 211 | 211 | | ducting a full review under this subsection with re-6 |
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| 212 | 212 | | spect to the certification made under section 605(b), 7 |
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| 213 | 213 | | the Chief Counsel shall— 8 |
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| 214 | 214 | | ‘‘(A) consider— 9 |
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| 215 | 215 | | ‘‘(i) whether the agency that promul-10 |
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| 216 | 216 | | gated the proposed rule correctly deter-11 |
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| 217 | 217 | | mined which small entities will be affected 12 |
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| 218 | 218 | | by the proposed rule; 13 |
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| 219 | 219 | | ‘‘(ii) whether the agency considered 14 |
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| 220 | 220 | | adequate economic data to assess whether 15 |
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| 221 | 221 | | the proposed rule will have a significant 16 |
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| 222 | 222 | | impact on a substantial number of small 17 |
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| 223 | 223 | | entities; and 18 |
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| 224 | 224 | | ‘‘(iii) the economic implications of the 19 |
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| 225 | 225 | | proposed rule; and 20 |
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| 226 | 226 | | ‘‘(B) convene a virtual or in-person meet-21 |
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| 227 | 227 | | ing between the Chief Counsel, the petitioner, 22 |
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| 228 | 228 | | representatives of the agency that promulgated 23 |
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| 229 | 229 | | the proposed rule who are determined appro-24 |
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| 230 | 230 | | priate by the Chief Counsel, and the Adminis-25 |
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| 232 | 232 | | ssavage on LAPJG3WLY3PROD with BILLS 9 |
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| 233 | 233 | | •S 495 IS |
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| 234 | 234 | | trator of the Office of Information and Regu-1 |
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| 235 | 235 | | latory Affairs to— 2 |
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| 236 | 236 | | ‘‘(i) provide positions and support for 3 |
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| 237 | 237 | | those positions regarding the certification 4 |
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| 238 | 238 | | of the proposed rule; and 5 |
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| 239 | 239 | | ‘‘(ii) allow the Chief Counsel to ask 6 |
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| 240 | 240 | | questions as the Chief Counsel determines 7 |
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| 241 | 241 | | necessary to make a final determination as 8 |
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| 242 | 242 | | to the validity of the certification. 9 |
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| 243 | 243 | | ‘‘(2) P |
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| 244 | 244 | | UBLICATION.—Not later than 30 days 10 |
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| 245 | 245 | | after the date on which the Chief Counsel begins a 11 |
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| 246 | 246 | | full review of a certification made with respect to a 12 |
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| 247 | 247 | | proposed rule under paragraph (1), the Chief Coun-13 |
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| 248 | 248 | | sel shall submit to the petitioner and the agency that 14 |
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| 249 | 249 | | promulgated the proposed rule, and publish in the 15 |
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| 250 | 250 | | Federal Register and on the website of the Office of 16 |
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| 251 | 251 | | Advocacy of the Small Business Administration, the 17 |
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| 252 | 252 | | results of the review conducted under paragraph (1). 18 |
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| 253 | 253 | | ‘‘(3) R |
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| 254 | 254 | | EQUIREMENT TO PERFORM ANALYSES .— 19 |
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| 255 | 255 | | If, after a full review of a certification made with re-20 |
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| 256 | 256 | | spect to a proposed rule under paragraph (1), the 21 |
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| 257 | 257 | | Chief Counsel determines that the proposed rule 22 |
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| 258 | 258 | | will, if promulgated, have a significant economic im-23 |
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| 259 | 259 | | pact on a substantial number of small entities, the 24 |
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| 260 | 260 | | agency that promulgated the proposed rule shall per-25 |
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| 263 | 263 | | •S 495 IS |
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| 264 | 264 | | form an initial regulatory flexibility analysis and a 1 |
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| 265 | 265 | | final regulatory flexibility analysis for the proposed 2 |
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| 266 | 266 | | rule under sections 603 and 604, respectively. 3 |
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| 267 | 267 | | ‘‘(4) P |
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| 268 | 268 | | ENALTY.—If an agency fails to attend 4 |
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| 269 | 269 | | the required meeting under paragraph (1)(B) or in 5 |
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| 270 | 270 | | any other way fails to assist the Chief Counsel in a 6 |
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| 271 | 271 | | full review under paragraph (1) with respect to a 7 |
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| 272 | 272 | | proposed rule of the agency, as determined by the 8 |
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| 273 | 273 | | Chief Counsel, the final rule shall not apply to small 9 |
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| 274 | 274 | | entities. 10 |
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| 275 | 275 | | ‘‘(5) J |
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| 276 | 276 | | UDICIAL REVIEW.—For purposes of judi-11 |
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| 277 | 277 | | cial review under chapter 7 of this title, a certifi-12 |
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| 278 | 278 | | cation made by an agency under section 605(b) for 13 |
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| 279 | 279 | | which a petition is filed under subsection (a) shall 14 |
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| 280 | 280 | | be considered final agency action as of the date on 15 |
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| 281 | 281 | | which the Chief Counsel— 16 |
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| 282 | 282 | | ‘‘(A) makes a determination under sub-17 |
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| 283 | 283 | | section (c)(2) that the issues raised in the peti-18 |
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| 284 | 284 | | tion do not merit further review; or 19 |
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| 285 | 285 | | ‘‘(B) publishes the results of a full review 20 |
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| 286 | 286 | | of the certification under paragraph (1).’’. 21 |
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| 287 | 287 | | (b) T |
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| 288 | 288 | | ECHNICAL AND CONFORMINGAMENDMENT.— 22 |
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| 289 | 289 | | The table of sections for chapter 6 of title 5, United States 23 |
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| 290 | 290 | | Code, is amended by inserting after the item relating to 24 |
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| 291 | 291 | | section 605 the following: 25 |
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| 294 | 294 | | •S 495 IS |
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| 295 | 295 | | ‘‘605A. Review procedures relating to initial regulatory flexibility analysis certifi- |
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| 296 | 296 | | cations.’’. |
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| 297 | 297 | | SEC. 3. PUBLICATION OF GUIDANCE. |
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| 298 | 298 | | 1 |
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| 299 | 299 | | Section 609 of title 5, United States Code, is amend-2 |
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| 300 | 300 | | ed by adding at the end the following: 3 |
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| 301 | 301 | | ‘‘(f) With respect to any rule that an agency deter-4 |
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| 302 | 302 | | mines is likely to have a significant economic impact on 5 |
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| 303 | 303 | | a substantial number of small entities, the head of the 6 |
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| 304 | 304 | | agency shall, on regulations.gov or any similar internet 7 |
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| 305 | 305 | | website— 8 |
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| 306 | 306 | | ‘‘(1) publish all guidance documents and other 9 |
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| 307 | 307 | | relevant documents, as determined by the agency, 10 |
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| 308 | 308 | | including any updated guidance documents that set 11 |
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| 309 | 309 | | forth interpretations of the rule; and 12 |
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| 310 | 310 | | ‘‘(2) allow for comments on the documents de-13 |
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| 311 | 311 | | scribed in paragraph (1) to ensure that small enti-14 |
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| 312 | 312 | | ties may access and provide feedback on those docu-15 |
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| 313 | 313 | | ments.’’. 16 |
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| 314 | 314 | | SEC. 4. REVIEW PROCEDURES FOR SECTION 610 PERIODIC 17 |
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| 315 | 315 | | REVIEW OF RULES. 18 |
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| 316 | 316 | | (a) I |
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| 317 | 317 | | NGENERAL.—Section 610 of title 5, United 19 |
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| 318 | 318 | | States Code, is amended— 20 |
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| 319 | 319 | | (1) in subsection (b)— 21 |
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| 320 | 320 | | (A) in the matter preceding paragraph (1), 22 |
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| 321 | 321 | | by striking ‘‘the following factors’’; 23 |
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| 323 | 323 | | ssavage on LAPJG3WLY3PROD with BILLS 12 |
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| 324 | 324 | | •S 495 IS |
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| 325 | 325 | | (B) in paragraph (4), by striking ‘‘and’’ at 1 |
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| 326 | 326 | | the end; 2 |
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| 327 | 327 | | (C) in paragraph (5), by striking the pe-3 |
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| 328 | 328 | | riod at the end and inserting ‘‘; and’’; and 4 |
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| 329 | 329 | | (D) by adding at the end the following: 5 |
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| 330 | 330 | | ‘‘(6) any indirect costs described in the initial 6 |
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| 331 | 331 | | regulatory flexibility analysis under section 7 |
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| 332 | 332 | | 603(b)(6), and any other indirect costs that may 8 |
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| 333 | 333 | | have arisen during the 10-year period described in 9 |
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| 334 | 334 | | subsection (a).’’; and 10 |
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| 335 | 335 | | (2) by adding at the end the following: 11 |
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| 336 | 336 | | ‘‘(d) If an agency fails to conduct a review of a rule 12 |
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| 337 | 337 | | as required under this section within the 10-year period 13 |
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| 338 | 338 | | described in subsection (a)— 14 |
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| 339 | 339 | | ‘‘(1) the Chief Counsel for Advocacy of the 15 |
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| 340 | 340 | | Small Business Administration shall notify the agen-16 |
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| 341 | 341 | | cy that the rule has ceased to be effective; 17 |
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| 342 | 342 | | ‘‘(2) the agency shall publish in the Federal 18 |
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| 343 | 343 | | Register a notification that the rule has ceased to be 19 |
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| 344 | 344 | | effective, and solicit comments for why the rule 20 |
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| 345 | 345 | | should be reinstated; and 21 |
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| 346 | 346 | | ‘‘(3) if, based on the comments received under 22 |
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| 347 | 347 | | paragraph (2), the agency determines that the rule 23 |
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| 348 | 348 | | should be reinstated— 24 |
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| 350 | 350 | | ssavage on LAPJG3WLY3PROD with BILLS 13 |
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| 351 | 351 | | •S 495 IS |
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| 352 | 352 | | ‘‘(A) the agency shall have 180 days begin-1 |
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| 353 | 353 | | ning on the date of that determination to com-2 |
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| 354 | 354 | | plete the review of the rule under this section; 3 |
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| 355 | 355 | | and 4 |
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| 356 | 356 | | ‘‘(B) upon completion of the review under 5 |
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| 357 | 357 | | subparagraph (A), the rule shall be reinstated, 6 |
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| 358 | 358 | | notwithstanding the notice and comment rule-7 |
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| 359 | 359 | | making procedures under section 553 of this 8 |
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| 360 | 360 | | title.’’. 9 |
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| 361 | 361 | | (b) A |
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| 362 | 362 | | PPLICATION.—The amendment made by sub-10 |
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| 363 | 363 | | section (a)(2) shall apply with respect to any final rule 11 |
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| 364 | 364 | | issued by an agency— 12 |
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| 365 | 365 | | (1) during the 5-year period preceding the date 13 |
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| 366 | 366 | | of enactment of this Act; or 14 |
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| 367 | 367 | | (2) on or after the date of enactment of this 15 |
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| 368 | 368 | | Act. 16 |
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| 369 | 369 | | SEC. 5. NO ADDITIONAL FUNDS. 17 |
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| 370 | 370 | | No additional funds are authorized to be appro-18 |
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| 371 | 371 | | priated for the purpose of carrying out this Act or the 19 |
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| 372 | 372 | | amendments made by this Act. 20 |
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| 373 | 373 | | Æ |
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