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Bill — H.R. 1163, Prove It Act of 2025 (House, February 10, 2025)

Summary

H.R. 1163, the Prove It Act of 2025, was introduced on February 10, 2025, by Mr. Finstad for himself and others, and referred to the Committee on the Judiciary and, in addition, to the Committee on Small Business. It amends title 5, United States Code, to require greater transparency for Federal regulatory decisions that impact small businesses. Section 2 changes the initial regulatory flexibility analysis and adds review procedures for certifications; Section 3 requires publishing guidance documents on regulations.gov; Section 4 adds review procedures for the periodic review of rules under section 610. Section 5 states that no additional funds are authorized to be appropriated.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
407200 2025 04 29 Icymi House Committee On Small Business To Hold Fu Att0
Date
2025-04-29
Case
407200 2025 04 29 Icymi House Committee On Small Business To Hold Fu Att0

Cite this document

“Bill — H.R. 1163, Prove It Act of 2025 (House, February 10, 2025).” Dated 2025-04-29. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-04-29-407200-2025-04-29-icymi-house-committee-on-small-business-to-hold-fu-att0/, SHA-256 8e04194e44b0733f1e67c5bf3cdf5cee769b7469dc5d0a15bcf07f681c39b1b2.

Full text

                                                                                                                                                                           I




                                                                        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 con-
                                                                            cerned




                                                                                                                  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.

                                                                          1              Be it enacted by the Senate and House of Representa-
                                                                          2 tives of the United States of America in Congress assembled,
                                                                          3     SECTION 1. SHORT TITLE.

                                                                          4              This Act may be cited as the ‘‘Prove It Act of 2025’’.




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                                                                          5     SEC. 2. INITIAL REGULATORY FLEXIBILITY ANALYSIS.

                                                                          6              (a) IN GENERAL.—Chapter 6 of title 5, United
                                                                          7 States Code, is amended—

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                                                                          1                        (1) in section 603(b)—
                                                                          2                                 (A) in paragraph (5), by striking the pe-
                                                                          3                        riod at the end and inserting ‘‘; and’’; and
                                                                          4                                 (B) by adding at the end the following:
                                                                          5                        ‘‘(6) where feasible, any reasonably foreseeable
                                                                          6              potential indirect costs the proposed rule may im-
                                                                          7              pose on small entities, including small entities
                                                                          8              that—
                                                                          9                                 ‘‘(A) purchase products or services from,
                                                                        10                         sell products or services to, or otherwise con-
                                                                        11                         duct business with entities directly regulated by
                                                                        12                         the rule;
                                                                        13                                  ‘‘(B) are directly regulated by other gov-
                                                                        14                         ernmental entities as a result of the rule; or
                                                                        15                                  ‘‘(C) are not directly regulated by the
                                                                        16                         agency as a result of the rule but are otherwise
                                                                        17                         subject to other agency rules as a result of the
                                                                        18                         rule.’’;
                                                                        19                         (2) in section 605(b), by striking ‘‘The agency’’
                                                                        20               and inserting ‘‘Not later than 10 days after com-
                                                                        21               pleting the certification described in this subsection,
                                                                        22               the agency’’; and
                                                                        23                         (3) by inserting after section 605 the following:




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                                                                          1 ‘‘§ 605A. Review procedures relating to initial regu-
                                                                          2                            latory flexibility analysis certifications

                                                                          3              ‘‘(a) FILING A PETITION TO REVIEW AGENCY CER-
                                                                          4     TIFICATION OF A PROPOSED RULE.—

                                                                          5                        ‘‘(1) IN GENERAL.—Any small entity, group of
                                                                          6              small entities, or organization representing the inter-
                                                                          7              ests of small entities may petition the Chief Counsel
                                                                          8              for Advocacy of the Small Business Administration
                                                                          9              (in this section referred to as the ‘Chief Counsel’) to
                                                                        10               review a certification published under section 605(b)
                                                                        11               that a proposed rule will not, if promulgated, have
                                                                        12               a significant economic impact on a substantial num-
                                                                        13               ber of small entities.
                                                                        14                         ‘‘(2) FORM.—The Chief Counsel shall—
                                                                        15                                  ‘‘(A) determine the method, timing, and
                                                                        16                         form of disseminating a petition described in
                                                                        17                         paragraph (1); and
                                                                        18                                  ‘‘(B) display the information described in
                                                                        19                         subparagraph (A) on the website of the Office
                                                                        20                         of Advocacy of the Small Business Administra-
                                                                        21                         tion in a conspicuous manner.
                                                                        22                         ‘‘(3) CONTENTS.—Each petition described in
                                                                        23               paragraph (1) with respect to a certification pub-




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                                                                        24               lished under section 605(b) for a proposed rule shall
                                                                        25               clearly and concisely—


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                                                                          1                                 ‘‘(A) specify the name of the petitioner and
                                                                          2                        a telephone number, a mailing address, and an
                                                                          3                        email address that the Chief Counsel may use
                                                                          4                        to communicate with the petitioner;
                                                                          5                                 ‘‘(B) if the petitioner is an organization,
                                                                          6                        provide additional identifying information, as
                                                                          7                        applicable, including the organizational or cor-
                                                                          8                        porate status of the petitioner, the State of in-
                                                                          9                        corporation of the petitioner, the registered
                                                                        10                         agent of the petitioner, the interest of the peti-
                                                                        11                         tioner in representing small entities affected by
                                                                        12                         the proposed rule and the certification at issue,
                                                                        13                         and the name and authority of the individual
                                                                        14                         who signed the petition on behalf of the organi-
                                                                        15                         zational or corporate petitioner;
                                                                        16                                  ‘‘(C) present the specific problems or
                                                                        17                         issues that the petitioner believes should be ad-
                                                                        18                         dressed or considered through a review of the
                                                                        19                         certification, such as—
                                                                        20                                         ‘‘(i) any specific circumstances in
                                                                        21                                  which the determination of the certification
                                                                        22                                  that the proposed rule will not, if promul-
                                                                        23                                  gated, have a significant economic impact




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                                                                        24                                  on a substantial number of small entities is
                                                                        25                                  incorrect, incomplete, or inadequate; or


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                                                                          1                                        ‘‘(ii) why the proposed rule would, if
                                                                          2                                 promulgated, have a significant economic
                                                                          3                                 impact on a substantial number of small
                                                                          4                                 entities;
                                                                          5                                 ‘‘(D) cite, enclose, or reference any rel-
                                                                          6                        evant and non-protected or confidential tech-
                                                                          7                        nical, scientific, or other data or information
                                                                          8                        supporting any assertion of the problems or
                                                                          9                        issues with the certification;
                                                                        10                                  ‘‘(E) present a proposed solution to the
                                                                        11                         problems or issues raised in the petition, includ-
                                                                        12                         ing potential regulatory or compliance alter-
                                                                        13                         natives to the proposed rule;
                                                                        14                                  ‘‘(F) provide an analysis, discussion, or ar-
                                                                        15                         gument that explains how the proposed solution
                                                                        16                         described in subparagraph (E) solves the prob-
                                                                        17                         lems or issues raised in the petition; and
                                                                        18                                  ‘‘(G) cite, enclose, or reference any other
                                                                        19                         publicly available data or information sup-
                                                                        20                         porting the proposed solution described in sub-
                                                                        21                         paragraph (E).
                                                                        22               ‘‘(b) CONSULTATION.—
                                                                        23                         ‘‘(1) IN GENERAL.—Any entity or organization




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                                                                        24               desiring to file a petition under subsection (a) may




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                                                                          1              request a consultation with the Chief Counsel before
                                                                          2              or after filing the petition.
                                                                          3                        ‘‘(2) FORM.—The Chief Counsel shall—
                                                                          4                                 ‘‘(A) determine the method, timing, and
                                                                          5                        form of requesting a consultation with the Chief
                                                                          6                        Counsel under paragraph (1); and
                                                                          7                                 ‘‘(B) display the information described in
                                                                          8                        subparagraph (A) on the website of the Office
                                                                          9                        of Advocacy of the Small Business Administra-
                                                                        10                         tion in a conspicuous manner.
                                                                        11                         ‘‘(3) LIMITATIONS                     ON       ASSISTANCE.—In           any
                                                                        12               consultation regarding a petition under paragraph
                                                                        13               (1), the Chief Counsel—
                                                                        14                                  ‘‘(A) may only—
                                                                        15                                         ‘‘(i) describe the process for filing,
                                                                        16                                  docketing, tracking, closing, amending,
                                                                        17                                  withdrawing, and resolving the petition;
                                                                        18                                  and
                                                                        19                                         ‘‘(ii) assist the petitioner to clarify the
                                                                        20                                  petition so that the Chief Counsel is able
                                                                        21                                  to understand the issues of concern to the
                                                                        22                                  petitioner; and
                                                                        23                                  ‘‘(B) may not advise a petitioner on wheth-




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                                                                        24                         er the petition should be amended or with-
                                                                        25                         drawn.


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                                                                          1              ‘‘(c) PRIMA FACIE REVIEW.—
                                                                          2                        ‘‘(1) IN GENERAL.—Upon receipt of a petition
                                                                          3              filed under this section with respect to the certifi-
                                                                          4              cation of a proposed rule, the Chief Counsel shall
                                                                          5              make an initial prima facie determination on the
                                                                          6              merit of the issues raised in the petition as to the
                                                                          7              properness of the certification and whether the pro-
                                                                          8              posed rule in question would, if promulgated, have
                                                                          9              a significant economic impact on a substantial num-
                                                                        10               ber of small entities.
                                                                        11                         ‘‘(2) NO FURTHER REVIEW.—If, following the
                                                                        12               prima facie review of a petition under paragraph (1),
                                                                        13               the Chief Counsel determines that the issues raised
                                                                        14               in the petition do not merit further review by the
                                                                        15               Chief Counsel, the Chief Counsel shall, not later
                                                                        16               than 10 days after receipt of the petition, inform the
                                                                        17               petitioner of that determination and the matter shall
                                                                        18               be closed.
                                                                        19                         ‘‘(3) FURTHER                       REVIEW.—If,                 following the
                                                                        20               prima facie review of a petition under paragraph (1),
                                                                        21               the Chief Counsel determines that the issues raised
                                                                        22               in the petition do merit further review by the Chief
                                                                        23               Counsel, the Chief Counsel shall, not later than 10




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                                                                        24               days after receipt of the petition, inform the peti-
                                                                        25               tioner and the agency that promulgated the pro-


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                                                                          1              posed rule that the Chief Counsel shall conduct a
                                                                          2              full review of the certification and proposed rule to
                                                                          3              which the petition relates under subsection (d).
                                                                          4              ‘‘(d) FULL REVIEW.—
                                                                          5                        ‘‘(1)      CONSIDERATIONS;                        MEETING.—In           con-
                                                                          6              ducting a full review under this subsection with re-
                                                                          7              spect to the certification made under section 605(b),
                                                                          8              the Chief Counsel shall—
                                                                          9                                 ‘‘(A) consider—
                                                                        10                                         ‘‘(i) whether the agency that promul-
                                                                        11                                  gated the proposed rule correctly deter-
                                                                        12                                  mined which small entities will be affected
                                                                        13                                  by the proposed rule;
                                                                        14                                         ‘‘(ii) whether the agency considered
                                                                        15                                  adequate economic data to assess whether
                                                                        16                                  the proposed rule will have a significant
                                                                        17                                  impact on a substantial number of small
                                                                        18                                  entities; and
                                                                        19                                         ‘‘(iii) the economic implications of the
                                                                        20                                  proposed rule; and
                                                                        21                                  ‘‘(B) convene a virtual or in-person meet-
                                                                        22                         ing between the Chief Counsel, the petitioner,
                                                                        23                         representatives of the agency that promulgated




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                                                                        24                         the proposed rule who are determined appro-
                                                                        25                         priate by the Chief Counsel, and the Adminis-


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                                                                          1                        trator of the Office of Information and Regu-
                                                                          2                        latory Affairs to—
                                                                          3                                        ‘‘(i) provide positions and support for
                                                                          4                                 those positions regarding the certification
                                                                          5                                 of the proposed rule; and
                                                                          6                                        ‘‘(ii) allow the Chief Counsel to ask
                                                                          7                                 questions as the Chief Counsel determines
                                                                          8                                 necessary to make a final determination as
                                                                          9                                 to the validity of the certification.
                                                                        10                         ‘‘(2) PUBLICATION.—Not later than 30 days
                                                                        11               after the date on which the Chief Counsel begins a
                                                                        12               full review of a certification made with respect to a
                                                                        13               proposed rule under paragraph (1), the Chief Coun-
                                                                        14               sel shall submit to the petitioner and the agency that
                                                                        15               promulgated the proposed rule, and publish in the
                                                                        16               Federal Register and on the website of the Office of
                                                                        17               Advocacy of the Small Business Administration, the
                                                                        18               results of the review conducted under paragraph (1).
                                                                        19                         ‘‘(3) REQUIREMENT TO PERFORM ANALYSES.—
                                                                        20               If, after a full review of a certification made with re-
                                                                        21               spect to a proposed rule under paragraph (1), the
                                                                        22               Chief Counsel determines that the proposed rule
                                                                        23               will, if promulgated, have a significant economic im-




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                                                                        24               pact on a substantial number of small entities, the
                                                                        25               agency that promulgated the proposed rule shall per-


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                                                                          1              form an initial regulatory flexibility analysis and a
                                                                          2              final regulatory flexibility analysis for the proposed
                                                                          3              rule under sections 603 and 604, respectively.
                                                                          4                        ‘‘(4) PENALTY.—If an agency fails to attend
                                                                          5              the required meeting under paragraph (1)(B) or in
                                                                          6              any other way fails to assist the Chief Counsel in a
                                                                          7              full review under paragraph (1) with respect to a
                                                                          8              proposed rule of the agency, as determined by the
                                                                          9              Chief Counsel, the final rule shall not apply to small
                                                                        10               entities.
                                                                        11                         ‘‘(5) JUDICIAL REVIEW.—For purposes of judi-
                                                                        12               cial review under chapter 7 of this title, a certifi-
                                                                        13               cation made by an agency under section 605(b) for
                                                                        14               which a petition is filed under subsection (a) shall
                                                                        15               be considered final agency action as of the date on
                                                                        16               which the Chief Counsel—
                                                                        17                                  ‘‘(A) makes a determination under sub-
                                                                        18                         section (c)(2) that the issues raised in the peti-
                                                                        19                         tion do not merit further review; or
                                                                        20                                  ‘‘(B) publishes the results of a full review
                                                                        21                         of the certification under paragraph (1).’’.
                                                                        22               (b) TECHNICAL AND CONFORMING AMENDMENT.—
                                                                        23 The table of sections for chapter 6 of title 5, United States




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                                                                        24 Code, is amended by inserting after the item relating to
                                                                        25 section 605 the following:


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                                                                                ‘‘605A. Review procedures relating to initial regulatory flexibility analysis certifi-
                                                                                                cations.’’.

                                                                          1     SEC. 3. PUBLICATION OF GUIDANCE.

                                                                          2              Section 609 of title 5, United States Code, is amend-
                                                                          3 ed by adding at the end the following:
                                                                          4              ‘‘(f) With respect to any rule that an agency deter-
                                                                          5 mines is likely to have a significant economic impact on
                                                                          6 a substantial number of small entities, the head of the
                                                                          7 agency shall, on regulations.gov or any similar internet
                                                                          8 website—
                                                                          9                        ‘‘(1) publish all guidance documents and other
                                                                        10               relevant documents, as determined by the agency,
                                                                        11               including any updated guidance documents that set
                                                                        12               forth interpretations of the rule; and
                                                                        13                         ‘‘(2) allow for comments on the documents de-
                                                                        14               scribed in paragraph (1) to ensure that small enti-
                                                                        15               ties may access and provide feedback on those docu-
                                                                        16               ments.’’.
                                                                        17      SEC. 4. REVIEW PROCEDURES FOR SECTION 610 PERIODIC

                                                                        18                              REVIEW OF RULES.

                                                                        19               (a) IN GENERAL.—Section 610 of title 5, United
                                                                        20 States Code, is amended—
                                                                        21                         (1) in subsection (b)—
                                                                        22                                  (A) in the matter preceding paragraph (1),




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                                                                        23                         by striking ‘‘the following factors’’;



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                                                                          1                                 (B) in paragraph (4), by striking ‘‘and’’ at
                                                                          2                        the end;
                                                                          3                                 (C) in paragraph (5), by striking the pe-
                                                                          4                        riod at the end and inserting ‘‘; and’’; and
                                                                          5                                 (D) by adding at the end the following:
                                                                          6                        ‘‘(6) any indirect costs described in the initial
                                                                          7              regulatory               flexibility            analysis             under        section
                                                                          8              603(b)(6), and any other indirect costs that may
                                                                          9              have arisen during the 10-year period described in
                                                                        10               subsection (a).’’; and
                                                                        11                         (2) by adding at the end the following:
                                                                        12               ‘‘(d) If an agency fails to conduct a review of a rule
                                                                        13 as required under this section within the 10-year period
                                                                        14 described in subsection (a)—
                                                                        15                         ‘‘(1) the Chief Counsel for Advocacy of the
                                                                        16               Small Business Administration shall notify the agen-
                                                                        17               cy that the rule has ceased to be effective;
                                                                        18                         ‘‘(2) the agency shall publish in the Federal
                                                                        19               Register a notification that the rule has ceased to be
                                                                        20               effective, and solicit comments for why the rule
                                                                        21               should be reinstated; and
                                                                        22                         ‘‘(3) if, based on the comments received under
                                                                        23               paragraph (2), the agency determines that the rule




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                                                                        24               should be reinstated—




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                                                                          1                                 ‘‘(A) the agency shall have 180 days begin-
                                                                          2                        ning on the date of that determination to com-
                                                                          3                        plete the review of the rule under this section;
                                                                          4                        and
                                                                          5                                 ‘‘(B) upon completion of the review under
                                                                          6                        subparagraph (A), the rule shall be reinstated,
                                                                          7                        notwithstanding the notice and comment rule-
                                                                          8                        making procedures under section 553 of this
                                                                          9                        title.’’.
                                                                        10               (b) APPLICATION.—The amendment made by sub-
                                                                        11 section (a)(2) shall apply with respect to any final rule
                                                                        12 issued by an agency—
                                                                        13                         (1) during the 5-year period preceding the date
                                                                        14               of enactment of this Act; or
                                                                        15                         (2) on or after the date of enactment of this
                                                                        16               Act.
                                                                        17      SEC. 5. NO ADDITIONAL FUNDS.

                                                                        18               No additional funds are authorized to be appro-
                                                                        19 priated for the purpose of carrying out this Act or the
                                                                        20 amendments made by this Act.
                                                                                                                                   Æ




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