Press Releases
Finstad, Caraveo, Moran Introduce the Prove It Act, Protecting Small Businesses from Burdensome Regulations
February 1, 2024
WASHINGTON, D.C. – Today, Congressman Brad Finstad (MN-01), Congresswoman Yadira Caraveo (CO-08), and Congressman Nathaniel Moran (TX-01) introduced the bipartisan Prove It Act, legislation that strengthens protections for small businesses that were established in the Regulatory Flexibility Act, by forcing federal agencies to take into consideration the direct and indirect costs placed on small businesses through their regulations.
Specifically, the Prove It Act requires federal agencies to analyze the impact of their regulatory action and limit these impacts for small entities by:
Specifically, the Prove It Act requires federal agencies to analyze the impact of their regulatory action and limit these impacts for small entities by:
- Creating a way for small businesses to raise concerns when regulators do not consider both the direct and indirect costs their regulations place on them;
- Allowing small businesses to ask their chief advocate in government to review agencies’ work and make the government prove they are fully compliant with already existing laws;
- If regulators fail to comply with this review process, then small businesses will be exempt from the agency’s regulations altogether;
- Ensuring small businesses can easily access preexisting guidance documents online and create a way for small businesses to directly raise questions or concerns with their regulators.
“As a small business owner, I know firsthand that southern Minnesota’s family-owned businesses need less government regulation from Washington bureaucrats, not more,” said Rep. Finstad. “The Prove It Act makes sure our small businesses aren’t saddled with unnecessary and overburdensome regulatory mandates, which is why I am proud to introduce this important, bipartisan legislation with my colleagues today.”
“Colorado is home to more than 600,000 small businesses. Small business owners work hard to put food on their tables and serve our communities, but they need our help,” said Rep. Caraveo. “I am proud to help lead the bipartisan Prove it Act, to defend small entities’ time and money from government overreach and burdensome regulations.”
“The federal overreach imposed on family-owned and small businesses can be crippling,” said Rep. Moran. “East Texas businesses deserve to be heard, and that’s why I have introduced the Prove It Act with Congressman Finstad. The bipartisan Prove It Act of 2024 ensures that small businesses are not crushed by burdensome regulations and gives them a voice in the decisions that can make or break their livelihood.”
Full text of the legislation can be found here.
The Prove It Act is supported by the Job Creators Network, U.S. Chamber of Commerce, National Federation of Independent Business, and the Independent Community Bankers Association.
"Job Creators Network applauds Representatives Finstad, Caraveo, and Moran for introducing this legislation that would provide needed relief to small businesses contending with overregulation. Their bill would protect small businesses from executive overreach by finally meaningfully holding government bureaucrats accountable for considering the small business impact of new regulations before they are imposed. And it would empower small businesses and their defenders to challenge certifications claiming proposed rules don't significantly impact small businesses. Representatives Finstad, Caraveo, and Moran's legislation would fulfill a key pillar of Job Creators Network's American Small Business Prosperity Plan by reducing the regulatory burden on small businesses," said Alfredo Ortiz, President and CEO of Job Creators Network.
“The Prove It Act will close loopholes in the Regulatory Flexibility Act that have allowed federal regulators to shut out small businesses from decision making," said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. “Rep. Finstad, Rep. Moran, and Rep. Caraveo understand that small businesses provide oversized benefits to our economy, from job creation to innovation, and their legislation will prevent hidden regulatory costs and ensure agencies consider small business input before issuing new rules and regulations.”
A letter of support from the National Federation of Independent Business can be found here.
Background:
The Regulatory Flexibility Act (RFA) passed by Congress by unanimous consent and was signed by President Carter in 1980. RFA requires federal agencies to analyze the impact their regulatory actions have on small entities (small businesses, small non-profit organizations, and small jurisdictions of government) and, where the regulatory impact is likely to be "significant", affecting a "substantial number" of these small entities, seek less burdensome alternatives for them.
RFA has been estimated to save small entities more than $200 billion without undermining the broad purposes of the regulations it affects. Unfortunately, in the past decade, federal agencies, in some cases, have not met requirements set out through RFA and some have gotten rid of their RFA policies all together.
“Colorado is home to more than 600,000 small businesses. Small business owners work hard to put food on their tables and serve our communities, but they need our help,” said Rep. Caraveo. “I am proud to help lead the bipartisan Prove it Act, to defend small entities’ time and money from government overreach and burdensome regulations.”
“The federal overreach imposed on family-owned and small businesses can be crippling,” said Rep. Moran. “East Texas businesses deserve to be heard, and that’s why I have introduced the Prove It Act with Congressman Finstad. The bipartisan Prove It Act of 2024 ensures that small businesses are not crushed by burdensome regulations and gives them a voice in the decisions that can make or break their livelihood.”
Full text of the legislation can be found here.
The Prove It Act is supported by the Job Creators Network, U.S. Chamber of Commerce, National Federation of Independent Business, and the Independent Community Bankers Association.
"Job Creators Network applauds Representatives Finstad, Caraveo, and Moran for introducing this legislation that would provide needed relief to small businesses contending with overregulation. Their bill would protect small businesses from executive overreach by finally meaningfully holding government bureaucrats accountable for considering the small business impact of new regulations before they are imposed. And it would empower small businesses and their defenders to challenge certifications claiming proposed rules don't significantly impact small businesses. Representatives Finstad, Caraveo, and Moran's legislation would fulfill a key pillar of Job Creators Network's American Small Business Prosperity Plan by reducing the regulatory burden on small businesses," said Alfredo Ortiz, President and CEO of Job Creators Network.
“The Prove It Act will close loopholes in the Regulatory Flexibility Act that have allowed federal regulators to shut out small businesses from decision making," said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. “Rep. Finstad, Rep. Moran, and Rep. Caraveo understand that small businesses provide oversized benefits to our economy, from job creation to innovation, and their legislation will prevent hidden regulatory costs and ensure agencies consider small business input before issuing new rules and regulations.”
A letter of support from the National Federation of Independent Business can be found here.
Background:
The Regulatory Flexibility Act (RFA) passed by Congress by unanimous consent and was signed by President Carter in 1980. RFA requires federal agencies to analyze the impact their regulatory actions have on small entities (small businesses, small non-profit organizations, and small jurisdictions of government) and, where the regulatory impact is likely to be "significant", affecting a "substantial number" of these small entities, seek less burdensome alternatives for them.
RFA has been estimated to save small entities more than $200 billion without undermining the broad purposes of the regulations it affects. Unfortunately, in the past decade, federal agencies, in some cases, have not met requirements set out through RFA and some have gotten rid of their RFA policies all together.
