H.R. 1163 — Prove It Act

This section establishes the short title of the Act as the “Prove It Act of 2025.”

This section revises the Regulatory Flexibility Act procedures for initial regulatory flexibility analyses and certifications under chapter 6 of title 5, United States Code, by requiring agencies, where feasible, to consider reasonably foreseeable indirect costs of proposed rules on small entities, including small entities that do business with directly regulated entities, are regulated by other governmental entities because of the rule, or are otherwise subject to other agency rules because of the rule. This section also requires an agency to publish a certification under 5 U.S.C. § 605(b) not later than 10 days after completing the certification, rather than without a specified deadline. This section establishes a new 5 U.S.C. § 605A process allowing small entities, groups of small entities, or organizations representing small entities to petition the Small Business Administration’s Chief Counsel for Advocacy to review a certification that a proposed rule will not have a significant economic impact on a substantial number of small entities. As background, a section 605(b) certification is an agency determination that a proposed rule does not require an initial regulatory flexibility analysis because it will not significantly affect a substantial number of small entities. This section requires the Chief Counsel to set and publicly post the method, timing, and form for filing petitions and consultation requests on the Office of Advocacy website, and limits consultation assistance to explaining the filing and review process and clarifying petition issues, while prohibiting advice on whether to amend or withdraw a petition. This section requires the Chief Counsel to make an initial prima facie review of each petition and, if no further review is warranted, to notify the petitioner and close the matter not later than 10 days after receipt of the petition.

This section directs agencies, for any rule they determine is likely to have a significant economic impact on a substantial number of small entities, to publish all guidance documents and other relevant documents on regulations.gov or a similar website and to allow comments on those documents. (Thus, small entities would have online access to agency guidance and an opportunity to provide feedback on updated interpretations of the rule.)

This section revises the small entity rule review requirements under 5 U.S.C. § 610 by directing agencies, when reviewing rules, to consider not only the five existing factors but also any indirect costs described in the initial regulatory flexibility analysis under 5 U.S.C. § 603(b)(6) and any other indirect costs that may have arisen during the 10-year review period. It also establishes a new enforcement process if an agency fails to complete a required review within 10 years: the Chief Counsel for Advocacy of the Small Business Administration must notify the agency that the rule has ceased to be effective; the agency must publish a Federal Register notice stating that the rule has ceased to be effective and solicit comments on whether it should be reinstated; and, if the agency decides to reinstate the rule based on those comments, it has 180 days to complete the review, after which the rule is reinstated notwithstanding the notice-and-comment procedures in 5 U.S.C. § 553. The new failure-to-review provision applies to final rules issued during the 5-year period before enactment and to final rules issued on or after enactment.

This section prohibits additional appropriations for carrying out this Act and the amendments made by this Act.