IB 

Union Calendar No. 631 

118TH CONGRESS 

2D SESSION H. R. 7198 

[Report No. 118–761, Part I] 

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 1, 2024 

Mr. FINSTAD (for himself, Ms. CARAVEO, and Mr. MORAN) 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 

NOVEMBER 22, 2024 

Additional sponsors: Mr. GALLAGHER, Ms. HAGEMAN, Ms. SALAZAR, Mr. 

VALADAO, Mrs. MILLER of West Virginia, Mr. STAUBER, Mr. BACON, 

Mrs. FISCHBACH, Mr. FLOOD, Mr. STEIL, Mr. CAREY, Mr. MOONEY, Mr. 

D’ESPOSITO, Mr. BEAN of Florida, and Mr. LAMBORN

NOVEMBER 22, 2024 

Reported from the Committee on the Judiciary with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

NOVEMBER 22, 2024 

Committee on Small Business discharged; committed to the Committee of the 

Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on February 1, 2024] 


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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. 


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1 Be it enacted by the Senate and House of Representa2 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 2024’’. 

5 SEC. 2. INITIAL REGULATORY FLEXIBILITY ANALYSIS. 

6 (a) IN GENERAL.—Chapter 6 of title 5, United States 

7 Code, is amended— 

8 (1) in section 603(b)— 

9 (A) in paragraph (5), by striking the period 

10 at the end and inserting ‘‘; and’’; and 

11 (B) by adding at the end the following: 

12 ‘‘(6) where feasible, any reasonably foreseeable 

13 potential indirect costs the proposed rule may impose 

14 on small entities, including small entities that— 

15 ‘‘(A) purchase products or services from, sell 

16 products or services to, or otherwise conduct 

17 business with entities directly regulated by the 

18 rule; 

19 ‘‘(B) are directly regulated by other govern20 mental entities as a result of the rule; or 

21 ‘‘(C) are not directly regulated by the agen22 cy as a result of the rule but are otherwise sub23 ject to other agency rules as a result of the rule.’’; 

24 (2) in section 605(b), by striking ‘‘The agency’’ 

25 and inserting ‘‘Not later than 10 days after comVerDate Sep 11 2014 21:35 Nov 22, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H7198.RH H7198

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1 pleting the certification described in this subsection, 

2 the agency’’; and 

3 (3) by inserting after section 605 the following: 

4 ‘‘§ 605A. Review procedures relating to initial regu5 latory flexibility analysis certifications 

6 ‘‘(a) FILING A PETITION TO REVIEW AGENCY CERTIFI7 CATION OF A PROPOSED RULE.— 

8 ‘‘(1) IN GENERAL.—Any small entity, group of 

9 small entities, or organization representing the inter10 ests of small entities may petition the Chief Counsel 

11 for Advocacy of the Small Business Administration 

12 (in this section referred to as the ‘Chief Counsel’) to 

13 review a certification published under section 605(b) 

14 that a proposed rule will not, if promulgated, have a 

15 significant economic impact on a substantial number 

16 of small entities. 

17 ‘‘(2) FORM.—The Chief Counsel shall— 

18 ‘‘(A) determine the method, timing, and 

19 form of disseminating a petition described in 

20 paragraph (1); and 

21 ‘‘(B) display the information described in 

22 subparagraph (A) on the website of the Office of 

23 Advocacy of the Small Business Administration 

24 in a conspicuous manner. 


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1 ‘‘(3) CONTENTS.—Each petition described in 

2 paragraph (1) with respect to a certification pub3 lished under section 605(b) for a proposed rule shall 

4 clearly and concisely— 

5 ‘‘(A) specify the name of the petitioner and 

6 a telephone number, a mailing address, and an 

7 email address that the Chief Counsel may use to 

8 communicate with the petitioner; 

9 ‘‘(B) if the petitioner is an organization, 

10 provide additional identifying information, as 

11 applicable, including the organizational or cor12 porate status of the petitioner, the State of incor13 poration of the petitioner, the registered agent of 

14 the petitioner, the interest of the petitioner in 

15 representing small entities affected by the pro16 posed rule and the certification at issue, and the 

17 name and authority of the individual who signed 

18 the petition on behalf of the organizational or 

19 corporate petitioner; 

20 ‘‘(C) present the specific problems or issues 

21 that the petitioner believes should be addressed or 

22 considered through a review of the certification, 

23 such as— 

24 ‘‘(i) any specific circumstances in 

25 which the determination of the certification 


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1 that the proposed rule will not, if promul2 gated, have a significant economic impact 

3 on a substantial number of small entities is 

4 incorrect, incomplete, or inadequate; or 

5 ‘‘(ii) why the proposed rule would, if 

6 promulgated, have a significant economic 

7 impact on a substantial number of small 

8 entities; 

9 ‘‘(D) cite, enclose, or reference any relevant 

10 and non-protected or confidential technical, sci11 entific, or other data or information supporting 

12 any assertion of the problems or issues with the 

13 certification; 

14 ‘‘(E) present a proposed solution to the 

15 problems or issues raised in the petition, includ16 ing potential regulatory or compliance alter17 natives to the proposed rule; 

18 ‘‘(F) provide an analysis, discussion, or ar19 gument that explains how the proposed solution 

20 described in subparagraph (E) solves the prob21 lems or issues raised in the petition; and 

22 ‘‘(G) cite, enclose, or reference any other 

23 publicly available data or information sup24 porting the proposed solution described in sub25 paragraph (E). 


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1 ‘‘(b) CONSULTATION.— 

2 ‘‘(1) IN GENERAL.—Any entity or organization 

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

4 request a consultation with the Chief Counsel before 

5 or after filing the petition. 

6 ‘‘(2) FORM.—The Chief Counsel shall— 

7 ‘‘(A) determine the method, timing, and 

8 form of requesting a consultation with the Chief 

9 Counsel under paragraph (1); and 

10 ‘‘(B) display the information described in 

11 subparagraph (A) on the website of the Office of 

12 Advocacy of the Small Business Administration 

13 in a conspicuous manner. 

14 ‘‘(3) LIMITATIONS ON ASSISTANCE.—In any con15 sultation regarding a petition under paragraph (1), 

16 the Chief Counsel— 

17 ‘‘(A) may only— 

18 ‘‘(i) describe the process for filing, 

19 docketing, tracking, closing, amending, 

20 withdrawing, and resolving the petition; 

21 and 

22 ‘‘(ii) assist the petitioner to clarify the 

23 petition so that the Chief Counsel is able to 

24 understand the issues of concern to the peti25 tioner; and 


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1 ‘‘(B) may not advise a petitioner on wheth2 er the petition should be amended or withdrawn. 

3 ‘‘(c) PRIMA FACIE REVIEW.— 

4 ‘‘(1) IN GENERAL.—Upon receipt of a petition 

5 filed under this section with respect to the certifi6 cation of a proposed rule, the Chief Counsel shall 

7 make an initial prima facie determination on the 

8 merit of the issues raised in petition as to the 

9 properness of the certification and whether the pro10 posed rule in question would, if promulgated, have a 

11 significant economic impact on a substantial number 

12 of small entities. 

13 ‘‘(2) NO FURTHER REVIEW.—If, following the 

14 prima facie review of a petition under paragraph (1), 

15 the Chief Counsel determines that the issues raised in 

16 the petition do not merit further review by the Chief 

17 Counsel, the Chief Counsel shall, not later than 10 

18 days after receipt of the petition, inform the peti19 tioner of that determination and the matter shall be 

20 closed. 

21 ‘‘(3) FURTHER REVIEW.—If, following the prima 

22 facie review of a petition under paragraph (1), the 

23 Chief Counsel determines that the issues raised in the 

24 petition do merit further review by the Chief Counsel, 

25 the Chief Counsel shall, not later than 10 days after 


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1 receipt of the petition, inform the petitioner and the 

2 agency that promulgated the proposed rule that the 

3 Chief Counsel shall conduct a full review of the cer4 tification and proposed rule to which the petition re5 lates under subsection (d). 

6 ‘‘(d) FULL REVIEW.— 

7 ‘‘(1) CONSIDERATIONS; MEETING.—In con8 ducting a full review under this subsection with re9 spect to the certification made under section 605(b), 

10 the Chief Counsel shall— 

11 ‘‘(A) consider— 

12 ‘‘(i) whether the agency that promul13 gated the proposed rule correctly determined 

14 which small entities will be affected by the 

15 proposed rule; 

16 ‘‘(ii) whether the agency considered 

17 adequate economic data to assess whether 

18 the proposed rule will have a significant 

19 impact on a substantial number of small 

20 entities; and 

21 ‘‘(iii) the economic implications of the 

22 proposed rule; and 

23 ‘‘(B) convene a virtual or in-person meeting 

24 between the Chief Counsel, the petitioner, rep25 resentatives of the agency that promulgated the 


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1 proposed rule who are determined appropriate 

2 by the Chief Counsel, and the Administrator of 

3 the Office of Information and Regulatory affairs 

4 to— 

5 ‘‘(i) provide positions and support for 

6 those positions regarding the certification of 

7 the proposed rule; and 

8 ‘‘(ii) allow the Chief Counsel to ask 

9 questions as the Chief Counsel determines 

10 necessary to make a final determination as 

11 to the validity of the certification. 

12 ‘‘(2) PUBLICATION.—Not later than 30 days 

13 after the date on which the Chief Counsel begins a full 

14 review of a certification made with respect to a pro15 posed rule under paragraph (1), the Chief Counsel 

16 shall submit to the petitioner and the agency that 

17 promulgated the proposed rule, and publish in the 

18 Federal Register and on the website of the Office of 

19 Advocacy of the Small Business Administration, the 

20 results of the review conducted under paragraph (1). 

21 ‘‘(3) REQUIREMENT TO PERFORM ANALYSES.—If, 

22 after a full review of a certification made with respect 

23 to a proposed rule under paragraph (1), the Chief 

24 Counsel determines that the proposed rule will, if pro25 mulgated, have a significant economic impact on a 


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1 substantial number of small entities, the agency that 

2 promulgated the proposed rule shall perform an ini3 tial regulatory flexibility analysis and a final regu4 latory flexibility analysis for the proposed rule under 

5 sections 603 and 604, respectively. 

6 ‘‘(4) PENALTY.—If an agency fails to attend the 

7 required meeting under paragraph (1)(B) or in any 

8 other way fails to assist the Chief Counsel in a full 

9 review under paragraph (1) with respect to a pro10 posed rule of the agency, as determined by the Chief 

11 Counsel, the final rule shall not apply to small enti12 ties. 

13 ‘‘(5) JUDICIAL REVIEW.—For purposes of judi14 cial review under chapter 7 of this title, a certifi15 cation made by an agency under section 605(b) for 

16 which a petition is filed under subsection (a) shall be 

17 considered final agency action as of the date on which 

18 the Chief Counsel— 

19 ‘‘(A) makes a determination under sub20 section (c)(2) that the issues raised in the peti21 tion do not merit further review; or 

22 ‘‘(B) publishes the results of a full review of 

23 the certification under paragraph (1).’’. 

24 (b) TECHNICAL AND CONFORMING AMENDMENT.—The 

25 table of sections for chapter 6 of title 5, United States Code, 


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1 is amended by inserting after the item relating to section 

2 605 the following: 

‘‘605A. Review procedures relating to initial regulatory flexibility analysis certifications.’’. 

3 SEC. 3. PUBLICATION OF GUIDANCE. 

4 Section 609 of title 5, United States Code, is amended 

5 by adding at the end the following: 

6 ‘‘(f) With respect to any rule that an agency deter7 mines is likely to have a significant economic impact on 

8 a substantial number of small entities, the head of the agen9 cy shall, on regulations.gov or any similar internet 

10 website— 

11 ‘‘(1) publish all guidance documents and other 

12 relevant documents, as determined by the agency, in13 cluding any updated guidance documents that set 

14 forth interpretations of the rule; and 

15 ‘‘(2) allow for comments on the documents de16 scribed in paragraph (1) to ensure that small entities 

17 may access and provide feedback on those docu18 ments.’’. 

19 SEC. 4. REVIEW PROCEDURES FOR SECTION 610 PERIODIC 

20 REVIEW OF RULES. 

21 (a) IN GENERAL.—Section 610 of title 5, United 

22 States Code, is amended— 

23 (1) in subsection (b)— 


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1 (A) in the matter preceding paragraph (1), 

2 by striking ‘‘the following factors’’; 

3 (B) in paragraph (4), by striking ‘‘and’’ at 

4 the end; 

5 (C) in paragraph (5), by striking the period 

6 at the end and inserting ‘‘; and’’; and 

7 (D) by adding at the end the following: 

8 ‘‘(6) any indirect costs described in the initial 

9 regulatory flexibility analysis under section 603(b)(6), 

10 and any other indirect costs that may have arisen 

11 during the 10-year period described in subsection 

12 (a).’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(d) If an agency fails to conduct a review of a rule 

15 as required under this section within the 10-year period 

16 described in subsection (a)— 

17 ‘‘(1) the Chief Counsel for Advocacy of the Small 

18 Business Administration shall notify the agency that 

19 the rule has ceased to be effective; 

20 ‘‘(2) the agency shall publish in the Federal Reg21 ister a notification that the rule has ceased to be effec22 tive, and solicit comments for why the rule should be 

23 reinstated; and 


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1 ‘‘(3) if, based on the comments received under 

2 paragraph (2), the agency determines that the rule 

3 should be reinstated— 

4 ‘‘(A) the agency shall have 180 days begin5 ning on the date of that determination to com6 plete the review of the rule under this section; 

7 and 

8 ‘‘(B) upon completion of the review under 

9 subparagraph (A), the rule shall be reinstated, 

10 notwithstanding the notice and comment rule11 making procedures under section 553 of this 

12 title.’’. 

13 (b) APPLICATION.—The amendment made by sub14 section (a)(2) shall apply with respect to any final rule 

15 issued by an agency— 

16 (1) during the 5-year period preceding the date 

17 of enactment of this Act; or 

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


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ssavage on LAPJG3WLY3PROD with BILLS
Union Calendar No. 631 

118TH CONGRESS 

2D SESSION H. R. 7198 

[Report No. 118–761, Part I] 

A BILL 

To amend title 5, United States Code, to require 

purposes. sions that impact small businesses, and for other greater transparency for Federal regulatory deciNOVEMBER 22, 2024 

Reported from the Committee on the Judiciary with an 

amendment 

NOVEMBER 22, 2024 

Committee on Small Business discharged; committed to 

Union and ordered to be printed the Committee of the Whole House on the State of the 


ssavage on LAPJG3WLY3PROD with BILLS