Congress gives small businesses a veto over federal rules—with hidden costs.
H.R. 1163 — Prove It Act of 2025 · Filed by Brad Finstad (R-MN) · 30 cosponsors · Introduced Feb 10, 2025 · Reported out
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What it does
This bill strengthens small-business input into federal rulemaking by requiring agencies to analyze indirect costs on small entities, allowing small businesses to petition the Small Business Administration's Chief Counsel to challenge agency certifications that a rule won't harm them, and mandating that agencies review rules every 10 years or lose their effect. It also requires agencies to publish guidance documents on regulations.gov for public comment.
Why we flagged it
The bill's core mechanism is procedural: it creates a formal review pathway for small-business challenges to agency regulatory certifications and mandates periodic rule review. It does not deregulate or exempt industries; it adds oversight and transparency requirements.
What the text implies
- The 10-year rule-review requirement with automatic expiration may create administrative chaos if agencies fail to comply, potentially causing rules to lapse unintentionally and then require expedited reinstatement—creating uncertainty for regulated entities and the public.
- The Chief Counsel's prima facie review (10-day turnaround) may become a bottleneck if petition volume is high, potentially delaying agency rulemaking or creating backlogs that undermine the transparency goal.
The full analysis lists 5 implications of this text.
Who stands to gain
small businesses and small-business advocacy organizations; trade associations representing small entities; law firms specializing in administrative law and regulatory compliance