This week, the House passed the Prove It Act - legislation to protect Small Business from unchecked, imbalanced rules and regulations.
This week, the House passed the Prove It Act (H.R. 7198) – an NSBA-endorsed bill that creates a process to review federal regulations and their effects on small businesses.
The legislation passed largely along party lines by a vote of 208 to 196.
H.R. 7198 is a bill that allows small businesses and their representative organizations, including groups like NSBA, to petition the Small Business Administration to examine whether a federal regulation would have significant economic effects on a large number of small businesses under H.R. 7198. The bill would also allow the SBA’s Advocacy Office to throw out rules if the issuing agency does not reevaluate them at least once a decade.
The legislation further requires the SBA’s Advocacy Office overturn rules if an agency fails to evaluate them or attend required meetings. Supporters argue it ensures agencies fully consider regulations’ economic effects on small businesses, while critics say it could create an unworkable review process.
Despite passage in the House, the bill, backed by small-business groups, including NSBA, still faces opposition from those concerned about delaying vital regulations for public health and safety.
The House Judiciary Committee approved the measure by a 17-10 vote on March 21, and the House Small Business panel approved the measure by a 13-11 vote on Sept. 10.
Follow NSBA as we continue tracking this legislation and its impacts on small business.
