119-hr1163

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1163 Introduced in House

    (IH) ]

<DOC>

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 
 concerned

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Prove It Act of 2025''.

SEC. 2. INITIAL REGULATORY FLEXIBILITY ANALYSIS.

    (a) In General.--Chapter 6 of title 5, United States Code, is 
amended--

    (1) in 

section 603

    (b) --
        (A) in paragraph

    (5) , by striking the period at the 
 end and inserting ``; and''; and
        (B) by adding at the end the following:
 ``

    (6) where feasible, any reasonably foreseeable potential 
 indirect costs the proposed rule may impose on small entities, 
 including small entities that--
 ``
        (A) purchase products or services from, sell 
 products or services to, or otherwise conduct business 
 with entities directly regulated by the rule;
 ``
        (B) are directly regulated by other governmental 
 entities as a result of the rule; or
 ``
            (C) are not directly regulated by the agency as a 
 result of the rule but are otherwise subject to other 
 agency rules as a result of the rule.'';

    (2) in 

section 605

    (b) , by striking ``The agency'' and 
 inserting ``Not later than 10 days after completing the 
 certification described in this subsection, the agency''; and

    (3) by inserting after 

section 605 the following:
``

Sec. 605A. Review procedures relating to initial regulatory 
 flexibility analysis certifications
 ``

    (a) Filing a Petition To Review Agency Certification of a 
Proposed Rule.--
 ``

    (1) In general.--Any small entity, group of small 
 entities, or organization representing the interests of small 
 entities may petition the Chief Counsel for Advocacy of the 
 Small Business Administration (in this section referred to as 
 the `Chief Counsel') to review a certification published under 
 

section 605

    (b) that a proposed rule will not, if promulgated, 
 have a significant economic impact on a substantial number of 
 small entities.
 ``

    (2) Form.--The Chief Counsel shall--
 ``
        (A) determine the method, timing, and form of 
 disseminating a petition described in paragraph

    (1) ; 
 and
 ``
        (B) display the information described in 
 subparagraph
        (A) on the website of the Office of 
 Advocacy of the Small Business Administration in a 
 conspicuous manner.
 ``

    (3) Contents.--Each petition described in paragraph

    (1) with respect to a certification published under 

section 605

    (b) for a proposed rule shall clearly and concisely--
 ``
        (A) specify the name of the petitioner and a 
 telephone number, a mailing address, and an email 
 address that the Chief Counsel may use to communicate 
 with the petitioner;
 ``
        (B) if the petitioner is an organization, provide 
 additional identifying information, as applicable, 
 including the organizational or corporate status of the 
 petitioner, the State of incorporation of the 
 petitioner, the registered agent of the petitioner, the 
 interest of the petitioner in representing small 
 entities affected by the proposed rule and the 
 certification at issue, and the name and authority of 
 the individual who signed the petition on behalf of the 
 organizational or corporate petitioner;
 ``
            (C) present the specific problems or issues that 
 the petitioner believes should be addressed or 
 considered through a review of the certification, such 
 as--
 ``
            (i) any specific circumstances in which 
 the determination of the certification that the 
 proposed rule will not, if promulgated, have a 
 significant economic impact on a substantial 
 number of small entities is incorrect, 
 incomplete, or inadequate; or
 ``
            (ii) why the proposed rule would, if 
 promulgated, have a significant economic impact 
 on a substantial number of small entities;
 ``
            (D) cite, enclose, or reference any relevant and 
 non-protected or confidential technical, scientific, or 
 other data or information supporting any assertion of 
 the problems or issues with the certification;
 ``
        (E) present a proposed solution to the problems 
 or issues raised in the petition, including potential 
 regulatory or compliance alternatives to the proposed 
 rule;
 ``
        (F) provide an analysis, discussion, or argument 
 that explains how the proposed solution described in 
 subparagraph
        (E) solves the problems or issues raised 
 in the petition; and
 ``
        (G) cite, enclose, or reference any other 
 publicly available data or information supporting the 
 proposed solution described in subparagraph
        (E) .
 ``

    (b) Consultation.--
 ``

    (1) In general.--Any entity or organization desiring to 
 file a petition under subsection

    (a) may request a consultation 
 with the Chief Counsel before or after filing the petition.
 ``

    (2) Form.--The Chief Counsel shall--
 ``
        (A) determine the method, timing, and form of 
 requesting a consultation with the Chief Counsel under 
 paragraph

    (1) ; and
 ``
        (B) display the information described in 
 subparagraph
        (A) on the website of the Office of 
 Advocacy of the Small Business Administration in a 
 conspicuous manner.
 ``

    (3) Limitations on assistance.--In any consultation 
 regarding a petition under paragraph

    (1) , the Chief Counsel--
 ``
        (A) may only--
 ``
            (i) describe the process for filing, 
 docketing, tracking, closing, amending, 
 withdrawing, and resolving the petition; and
 ``
            (ii) assist the petitioner to clarify the 
 petition so that the Chief Counsel is able to 
 understand the issues of concern to the 
 petitioner; and
 ``
        (B) may not advise a petitioner on whether the 
 petition should be amended or withdrawn.
 ``
            (c) Prima Facie Review.--
 ``

    (1) In general.--Upon receipt of a petition filed under 
 this section with respect to the certification of a proposed 
 rule, the Chief Counsel shall make an initial prima facie 
 determination on the merit of the issues raised in the petition 
 as to the properness of the certification and whether the 
 proposed rule in question would, if promulgated, have a 
 significant economic impact on a substantial number of small 
 entities.
 ``

    (2) No further review.--If, following the prima facie 
 review of a petition under paragraph

    (1) , the Chief Counsel 
 determines that the issues raised in the petition do not merit 
 further review by the Chief Counsel, the Chief Counsel shall, 
 not later than 10 days after receipt of the petition, inform 
 the petitioner of that determination and the matter shall be 
 closed.
 ``

    (3) Further review.--If, following the prima facie review 
 of a petition under paragraph

    (1) , the Chief Counsel determines 
 that the issues raised in the petition do merit further review 
 by the Chief Counsel, the Chief Counsel shall, not later than 
 10 days after receipt of the petition, inform the petitioner 
 and the agency that promulgated the proposed rule that the 
 Chief Counsel shall conduct a full review of the certification 
 and proposed rule to which the petition relates under 
 subsection
            (d) .
 ``
            (d) Full Review.--
 ``

    (1) Considerations; meeting.--In conducting a full review 
 under this subsection with respect to the certification made 
 under 

section 605

    (b) , the Chief Counsel shall--
 ``
        (A) consider--
 ``
            (i) whether the agency that promulgated 
 the proposed rule correctly determined which 
 small entities will be affected by the proposed 
 rule;
 ``
            (ii) whether the agency considered 
 adequate economic data to assess whether the 
 proposed rule will have a significant impact on 
 a substantial number of small entities; and
 ``
            (iii) the economic implications of the 
 proposed rule; and
 ``
        (B) convene a virtual or in-person meeting 
 between the Chief Counsel, the petitioner, 
 representatives of the agency that promulgated the 
 proposed rule who are determined appropriate by the 
 Chief Counsel, and the Administrator of the Office of 
 Information and Regulatory Affairs to--
 ``
            (i) provide positions and support for 
 those positions regarding the certification of 
 the proposed rule; and
 ``
            (ii) allow the Chief Counsel to ask 
 questions as the Chief Counsel determines 
 necessary to make a final determination as to 
 the validity of the certification.
 ``

    (2) Publication.--Not later than 30 days after the date 
 on which the Chief Counsel begins a full review of a 
 certification made with respect to a proposed rule under 
 paragraph

    (1) , the Chief Counsel shall submit to the petitioner 
 and the agency that promulgated the proposed rule, and publish 
 in the Federal Register and on the website of the Office of 
 Advocacy of the Small Business Administration, the results of 
 the review conducted under paragraph

    (1) .
 ``

    (3) Requirement to perform analyses.--If, after a full 
 review of a certification made with respect to a proposed rule 
 under paragraph

    (1) , the Chief Counsel determines that the 
 proposed rule will, if promulgated, have a significant economic 
 impact on a substantial number of small entities, the agency 
 that promulgated the proposed rule shall perform an initial 
 regulatory flexibility analysis and a final regulatory 
 flexibility analysis for the proposed rule under sections 603 
 and 604, respectively.
 ``

    (4) Penalty.--If an agency fails to attend the required 
 meeting under paragraph

    (1)
        (B) or in any other way fails to 
 assist the Chief Counsel in a full review under paragraph

    (1) with respect to a proposed rule of the agency, as determined by 
 the Chief Counsel, the final rule shall not apply to small 
 entities.
 ``

    (5) Judicial review.--For purposes of judicial review 
 under chapter 7 of this title, a certification made by an 
 agency under 

section 605

    (b) for which a petition is filed under 
 subsection

    (a) shall be considered final agency action as of 
 the date on which the Chief Counsel--
 ``
        (A) makes a determination under subsection
            (c) (2) that the issues raised in the petition do not merit 
 further review; or
 ``
        (B) publishes the results of a full review of the 
 certification under paragraph

    (1) .''.

    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 6 of title 5, United States Code, is amended by inserting after 
the item relating to 

section 605 the following:

``605A. Review procedures relating to initial regulatory flexibility 
 analysis certifications.''.

SEC. 3. PUBLICATION OF GUIDANCE.

 

Section 609 of title 5, United States Code, is amended by adding at 
the end the following:
 ``

    (f) With respect to any rule that an agency determines is likely 
to have a significant economic impact on a substantial number of small 
entities, the head of the agency shall, on regulations.gov or any 
similar internet website--
 ``

    (1) publish all guidance documents and other relevant 
 documents, as determined by the agency, including any updated 
 guidance documents that set forth interpretations of the rule; 
 and
 ``

    (2) allow for comments on the documents described in 
 paragraph

    (1) to ensure that small entities may access and 
 provide feedback on those documents.''.

SEC. 4. REVIEW PROCEDURES FOR 

SECTION 610 PERIODIC REVIEW OF RULES.

    (a) In General.--

Section 610 of title 5, United States Code, is 
amended--

    (1) in subsection

    (b) --
        (A) in the matter preceding paragraph

    (1) , by 
 striking ``the following factors'';
        (B) in paragraph

    (4) , by striking ``and'' at the 
 end;
            (C) in paragraph

    (5) , by striking the period at the 
 end and inserting ``; and''; and
            (D) by adding at the end the following:
 ``

    (6) any indirect costs described in the initial 
 regulatory flexibility analysis under 

section 603

    (b)

    (6) , and 
 any other indirect costs that may have arisen during the 10-
 year period described in subsection

    (a) .''; and

    (2) by adding at the end the following:
 ``
            (d) If an agency fails to conduct a review of a rule as required 
under this section within the 10-year period described in subsection

    (a) --
 ``

    (1) the Chief Counsel for Advocacy of the Small Business 
 Administration shall notify the agency that the rule has ceased 
 to be effective;
 ``

    (2) the agency shall publish in the Federal Register a 
 notification that the rule has ceased to be effective, and 
 solicit comments for why the rule should be reinstated; and
 ``

    (3) if, based on the comments received under paragraph

    (2) , the agency determines that the rule should be reinstated--
 ``
        (A) the agency shall have 180 days beginning on 
 the date of that determination to complete the review 
 of the rule under this section; and
 ``
        (B) upon completion of the review under 
 subparagraph
        (A) , the rule shall be reinstated, 
 notwithstanding the notice and comment rulemaking 
 procedures under 

section 553 of this title.''.

    (b) Application.--The amendment made by subsection

    (a)

    (2) shall 
apply with respect to any final rule issued by an agency--

    (1) during the 5-year period preceding the date of 
 enactment of this Act; or

    (2) on or after the date of enactment of this Act.

SEC. 5. NO ADDITIONAL FUNDS.

 No additional funds are authorized to be appropriated for the 
purpose of carrying out this Act or the amendments made by this Act.
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