Panhandle Times

Washington, D.C. – Congressman Nathaniel Moran, Congressman Brad Finstad, and Congresswoman Yadira Caraveo have introduced the bipartisan Prove It Act, a legislation aimed at strengthening protections for small businesses from burdensome regulations. The Prove It Act builds upon the existing Regulatory Flexibility Act by requiring federal agencies to consider the direct and indirect costs imposed on small businesses through their regulations.

The Prove It Act includes several provisions to limit the impact of regulatory actions on small entities. It creates a mechanism for small businesses to raise concerns when regulators overlook the costs of their regulations. Additionally, it allows small businesses to request a review of agencies' work by their chief advocate in government, ensuring compliance with existing laws. If regulators fail to comply with this review process, small businesses will be exempt from the agency's regulations altogether. Furthermore, the Prove It Act ensures easy access to preexisting guidance documents for small businesses and provides a direct channel for them to raise questions or concerns with their regulators.

Congressman Moran emphasized the need to give small businesses a voice in the decision-making process, stating, "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."

Congressman Finstad, a small business owner himself, expressed his support for the legislation, saying, "As a small business owner, I know firsthand that southern Minnesota's family-owned businesses need less government regulation from Washington bureaucrats, not more. 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."

Congresswoman Caraveo highlighted the significance of the Prove It Act in supporting small businesses in Colorado, stating, "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. 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 Prove It Act has garnered support from various organizations, including the Job Creators Network, U.S. Chamber of Commerce, National Federation of Independent Business, and the Independent Community Bankers Association.

The Prove It Act aims to address the recent abandonment of the Regulatory Flexibility Act by federal agencies. The Regulatory Flexibility Act, enacted in 1980, requires federal agencies to analyze the economic impact of regulatory actions on small businesses, small non-profits, and local jurisdictions of government. It has resulted in savings of over $200 billion for these entities and has been instrumental in curbing excessive federal regulation. However, in recent years, federal agencies have neglected to adhere to the requirements of the Regulatory Flexibility Act. The Prove It Act seeks to restore the voice of small businesses in the decision-making process and protect them from burdensome government overreach.

For the full text of the Prove It Act, please refer to the provided link.