Minnesota 1st District Rep. Brad Finstad, Rep. Yadira Caraveo of Colorado and Rep. Nathaniel Moran of Texas have introduced the Prove It Act, legislation that aims to strengthen protections for small businesses that were established in the Regulatory Flexibility Act.
The goal is to force 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:
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;
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.
