WASHINGTON, D.C. – Today, Congressman Brad Finstad (MN-01) applauded the House passage of his legislation, the Prove It Act (H.R. 7198), which protects small businesses from government overreach by giving small businesses a larger voice in the regulatory process. The bill passed the House of Representatives on a bipartisan basis by a vote of 208-196.

“Too often, small businesses across America are saddled with unnecessary and burdensome, one-size-fits-all regulations that cost business owners trillions each year. My legislation, the Prove It Act, is a commonsense, bipartisan solution that creates a pathway for business owners to advocate for themselves in the regulatory process,” said Rep. Finstad. “I am proud that my colleagues voted to pass the Prove It Act today, protecting Main Streets everywhere from the harmful overregulation that hinders so many Americans from achieving the dream of starting and owning a business.”

The Prove It Act strengthens protections for small businesses that were established in the Regulatory Flexibility Act, by requiring federal agencies to take into consideration the direct and indirect costs placed on small businesses through their regulations. Rep. Finstad introduced the Prove It Act earlier this year with Congresswoman Yadira Caraveo (CO-08) and Congressman Nathaniel Moran (TX-01).

“Small businesses are the backbone of Colorado’s economy, but burdensome regulations often inhibit their ability to grow and thrive. I’m proud to have worked with Congressman Finstad and Congressman Moran to advance this bipartisan effort on the House floor to cut through federal red tape. This bill will empower the small businesses driving our economy and ensure they have a seat at the table in the regulatory process,” said Rep. Caraveo.

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.

Support for the Prove It Act from the First District:

“Greater Mankato Growth members applaud the passage of the Prove It Act from the U.S. House of Representatives. Businesses are struggling every day to keep up with endless regulations while serving their customers, clients, and communities. Congressman Finstad and the bill’s co-authors understand that small businesses are the backbone of local communities and burdensome regulations stifle economic growth and investment. This legislation gives small businesses a stronger voice in the regulatory process by requiring the hidden costs to be determined when considering new regulations.” – Andy Wilke, Executive Vice President, Greater Mankato Growth

“In a time where small businesses face rising costs and regulatory burdens, the passage of the Prove It Act (H.R. 7198) marks a significant step forward. The Prove It Act brings needed reform to the Regulatory Flexibility Act, strengthens protections for small businesses by ensuring federal agencies assess the impact of regulations, and close loopholes that previously sidelined small business voices in rulemaking. The Rochester Area Chamber of Commerce celebrates the passage of the Prove It Act in the House and commends Congressman Finstad for championing this legislation and standing up for the small business community.” – Jonathon Krull, Public Affairs and Leadership Development Director, Rochester Area Chamber of Commerce

Support for the Prove It Act from the Small Business Community:

“Small business owners have consistently ranked ‘unreasonable government regulations’ as one of the top problems facing their businesses. Unfortunately, the regulatory burdens flowing out of Washington continue to rapidly increase and small businesses are desperate for relief. The Prove It Act is a critical step in minimizing the impact of onerous regulations and red tape small businesses face while increasing their engagement in the regulatory process. Small businesses thank Rep. Finstad for his leadership on the issue and are pleased the House passed this legislation.” – Adam Temple, NFIB Senior Vice President of Advocacy

“Forty-four years ago, Congress passed the Regulatory Flexibility Act to make sure small business has a seat at the table when regulatory decisions are made. The Prove It Act modernizes that law by requiring full disclosure of small business compliance costs for new federal mandates and by reinforcing the need for agencies to consider less burdensome methods. H.R. 7198 will allow small business owners to focus on providing value for their customers and income for their employees instead of digging out from under mountains of red tape." – Tom Sullivan, Vice President for Small Business Policy, U.S. Chamber of Commerce

“Not only are small businesses the backbone of America’s economy, they’re the backbone of America’s supply chain. 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.” – Todd Spencer, President of the Owner-Operator Independent Drivers Association

Watch Rep. Finstad's full remarks during Floor Debate here.