Prove It Act of 2021
Bill: S.2074 | Sponsor: Sen. Ernst, Joni (R-IA)
Policy area: Commerce

Summary:
Prove It Act of 2021
This bill authorizes the Small Business Administration (SBA) to request a review of any federal agency certification that a proposed rule will not have a significant economic impact on a substantial number of small entities. The request must explain why the SBA disagreed with the certification and provide a factual basis for the statement. If it is determined, after agency review and reconsideration, that the proposed rule will have a significant economic impact on a substantial number of small entities, the agency shall then perform an initial regulatory flexibility analysis for the rule.
An initial regulatory flexibility analysis is prepared to ensure the agency has considered all reasonable regulatory alternatives that would minimize the rule's economic burdens or increase its benefits for the affected small entities, while achieving the objectives of the rule or statute.

To require greater transparency for Federal regulatory decisions that 
                        impact small businesses.

    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 2021''.

SEC. 2. REVIEW PROCEDURES RELATED TO THE CERTIFICATION.

    (a) In General.--Section 605(b) of title 5, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``Sections 603'';
            (2) in paragraph (1), as so designated--
                    (A) by striking ``the preceding sentence'' and 
                inserting ``this subsection''; and
                    (B) by striking ``statement to the Chief Counsel 
                for Advocacy of the Small Business Administration'' and 
                inserting ``statement providing the factual basis to 
                the Chief Counsel for Advocacy of the Small Business 
                Administration (in this subsection referred to as the 
                `Chief Counsel')''; and
            (3) by adding at the end the following:
    ``(2)(A) If the Chief Counsel disagrees with a certification and 
statement providing the factual basis for the certification published 
in the Federal Register under paragraph (1) with respect to a proposed 
rule, the Chief Counsel may, not later than 14 days after the date on 
which the statement and factual basis were published in the Federal 
Register, submit to the head of the Federal agency proposing the rule a 
letter (in this subsection referred to as an `advisement letter') 
advising the head of the Federal agency to--
            ``(i) review the certification and the detailed statement 
        submitted by the Chief Counsel under subparagraph (B); and
            ``(ii) reconsider the certification.
    ``(B) An advisement letter submitted by the Chief Counsel under 
subparagraph (A) shall--
            ``(i) include a detailed statement of why the Chief Counsel 
        disagreed with the certification or the statement providing the 
        factual basis received under paragraph (1); and
            ``(ii) be published on the website of the Office of 
        Advocacy of the Small Business Administration.
    ``(C) Not later than 7 days after the date on which the head of a 
Federal agency receives an advisement letter under subparagraph (A) 
with respect to a proposed rule, the head of the Federal agency shall--
            ``(i) publish in the Federal Register and on the website of 
        the Federal agency an acknowledgment of receipt of the 
        advisement letter;
            ``(ii) allow the public comment period for the rule to 
        remain open for a period of not less than 30 days; and
            ``(iii) if, during the 30-day period described in clause 
        (ii), the head of the Federal agency determines that the 
        certification and statement providing the factual basis should 
        be modified, shorten or eliminate the 30-day period.
    ``(D)(i) Not later than 30 days after the date on which the Chief 
Counsel submits to the head of a Federal agency an advisement letter 
under subparagraph (A), the Federal agency shall submit to the Chief 
Counsel and publish in the Federal Register and on the website of the 
Federal agency the results of the review and reconsideration.
    ``(ii) If, after conducting the review and reconsideration under 
subparagraph (A), the head of the Federal agency determines--
            ``(I) that there was not a sufficient factual basis to 
        support the certification, the Federal agency shall perform and 
        publish in the Federal Register an initial regulatory 
        flexibility analysis under section 603, with an opportunity for 
        public comment, before promulgating the final rule;
            ``(II) that the certification was appropriate but the 
        factual basis was inadequate to support the certification, the 
        Federal agency shall revise the factual basis to support the 
        certification; or
            ``(III) that the certification was appropriate and the 
        factual basis was adequate to support the certification, the 
        Federal agency may continue with the rule making.''.

SEC. 3. JUDICIAL REVIEW.

    Section 611(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``605(b)'' and inserting 
        ``605(b)(1)''; and
            (2) in paragraph (2), by striking ``605(b)'' and inserting 
        ``605(b)(1)''.
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