In what the U.S. House of Representatives called protective measures for small business owners, last week the House passed the Prove It Act.
According to its summary, HB 7198 expands the requirements for federal agency rulemaking with respect to small businesses, organizations, and governmental jurisdictions.
Specifically, when conducting an initial regulatory flexibility analysis, agencies must include, where feasible, any reasonably foreseeable potential indirect costs the proposed rule may impose on such small entities.
The bill also states that if an agency certifies that an initial regulatory flexibility analysis is not required because the rule will not have a significant economic impact on a substantial number of small entities, the agency must provide such certification within 10 days to the Office of Advocacy of the Small Business Administration. A small entity or group of small entities may petition the Office of Advocacy to review such certification. The petition must include specified information, such as the issues the petitioner believes should be addressed and a proposed solution to the issues raised.
If the Office of Advocacy ultimately determines, upon a full review of the petition, that the proposed rule would have a significant economic impact on a substantial number of small entities, the agency promulgating the rule must perform an initial and final regulatory flexibility analysis for the rule. Additionally, if the agency does not participate or assist in the full review process, the finalized rule shall not apply to small entities.
The bill also requires agencies to publish, and allow for comments on, all guidance documents with respect to any rule an agency determines is likely to have a significant economic impact on a substantial number of small entities.
In lamens’ terms, the bill would strengthen protections for small businesses from federal regulatory overreach. The Prove It Act (HR 7198) would require federal agencies to take into consideration the direct and indirect costs placed on small businesses through their regulations.
In an email sent to The Trucker, the Owner-Operator Independent Drivers’ Association expressed its staunch support of the bill.
“Not only are small businesses the backbone of America’s economy, they’re the backbone of America’s supply chain,” said OOIDA President Todd Spencer. “Over 70% of American freight is transported exclusively by truck and 96% of trucking is made up of small business carriers. OOIDA and the 150,000 small business truckers we represent support the bipartisan Prove It Act to keep government overreach and burdensome overregulation off of the backs of the men and women behind the wheel who keep our economy moving. We thank the bipartisan coalition in the House of Representatives that got this bill over the line and especially Representative Finstad, Representative Caraveo, and Representative Moran for their leadership on this commonsense legislation.”
“Small businesses are concerned with the unprecedented pace of regulations coming from Washington,” OOIDA’s letter stated. “Over the last three and a half years, more than $1.6 trillion in new regulatory costs and almost 300 million new paperwork hours have been imposed on the private sector.1 These new burdens fall disproportionately on small businesses that do not have lawyers and compliance officers to navigate complex regulatory issues.”
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
