House Republicans Block "Prove It Act" Aimed at Supporting Small Businesses

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21 days ago - Politics

In a recent event in the House of Representatives, there was an important decision about a bill known as the "Prove It Act of 2024." This bill was designed to make sure that when the government makes new rules, the effects on small businesses are clear and well understood. The bill aimed to do two main things: first, it would require government agencies to provide more detailed analyses of how new rules might indirectly affect small businesses. For example, if a new rule changed how a specific industry operates, agencies would need to evaluate how this change might impact other businesses connected to that industry.

Second, the bill would allow small businesses, or groups representing them, to challenge decisions made by government agencies if they think the agency claimed incorrectly that a new rule wouldn't significantly affect small businesses. They could do this by sending a petition to a special part of the government known as the Chief Counsel for Advocacy at the Small Business Administration.

However, the attempt to push the bill forward didn't work out. House Republicans decided to block this bill. This means they voted against it, and as a result, the bill failed to pass. This decision was made during a type of vote called the "Yea-and-Nay," which essentially means "yes or no."

The failure of this bill means that, for now, small businesses won't see these proposed changes that could have made understanding and responding to new rules easier. The bill hoped to bring more fairness and transparency to how government rules impact small businesses, but it was stopped before it could even begin to be implemented.

This is a bill that aims to make federal rules clearer and more transparent, especially for small businesses. It focuses on making sure that small businesses know the costs they might face because of new rules. Here’s how it works:

  1. Identifying Costs: When the government wants to introduce a new rule that affects businesses, they now have to clearly outline any direct or indirect costs that small businesses could face. This includes costs from changes in how they need to operate, buy products, or work with other businesses because of the rule.

  2. Explaining Impacts: The government must provide detailed reasons if they think a rule won’t significantly impact small businesses. They have to do this within 10 days after making that decision.

  3. Challenging Government Decisions: Small businesses, groups, or organizations that represent small businesses can challenge these government decisions. They can ask a specific office within the Small Business Administration to review the decision. This challenge must include clear reasons and support for why they believe the decision should be reviewed.

  4. Providing Solutions: When challenging a rule, the petitioner must suggest alternative solutions. This helps ensure that their concerns are not just heard, but also addressed in practical ways.

  5. Getting Consultation: Small businesses can get help on how to file their challenge or improve it, but they won’t be advised on whether to change or remove their challenge.

  6. Review Processes: There are specific steps for how these challenges are reviewed. This includes an initial check to see if the challenge is valid, and if it is, a full review will be conducted.

This bill affects small businesses by potentially reducing unexpected costs and ensuring they have a say in the rules that affect them directly.

403 votes

Yes

197

No

206

Not Voting

29

  1. Motion to reconsider laid on the table Agreed to without objection.
  2. On passage Passed by the Yeas and Nays: 208 - 196 (Roll no. 489).
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  3. Passed/agreed to in House: On passage Passed by the Yeas and Nays: 208 - 196 (Roll no. 489).
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  4. On motion to recommit Failed by the Yeas and Nays: 197 - 206 (Roll no. 488).
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  5. The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
  6. Mr. Landsman moved to recommit to the Committee on the Judiciary.
  7. Considered as unfinished business.
  8. POSTPONED PROCEEDINGS - At the conclusion of debate on the Velazquez amendment No. 1, the Chair put the question on agreeing to the amendment and by voice vote, announced the noes had prevailed. Ms. Velazquez demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
  9. The previous question was ordered on the amendment and the bill pursuant to the rule.
  10. DEBATE - Pursuant to the provisions of H.Res. 1602, the House proceeded with 10 minutes of debate on the Velazquez amendment No.1.
  11. DEBATE - The House proceeded with one hour of debate on H.R. 7198.
  12. Rule provides for consideration of H.R. 5349 and H.R. 7198. The resolution provides for consideration of H.R. 5349 and H.R. 7198 under a structured rule. Rule provides for one hour of general debate and one motion to recommit on each bill.
  13. Considered under the provisions of rule H. Res. 1602.
  14. Rule H. Res. 1602 passed House.
  15. Rules Committee Resolution H. Res. 1602 Reported to House. Rule provides for consideration of H.R. 5349 and H.R. 7198. The resolution provides for consideration of H.R. 5349 and H.R. 7198 under a structured rule. Rule provides for one hour of general debate and one motion to recommit on each bill.
  16. Reported in House

    This is a bill that aims to make federal rules clearer and more transparent, especially for small businesses. It focuses on making sure that small businesses know the costs they might face because of new rules. Here’s how it works:

    1. Identifying Costs: When the government wants to introduce a new rule that affects businesses, they now have to clearly outline any direct or indirect costs that small businesses could face. This includes costs from changes in how they need to operate, buy products, or work with other businesses because of the rule.

    2. Explaining Impacts: The government must provide detailed reasons if they think a rule won’t significantly impact small businesses. They have to do this within 10 days after making that decision.

    3. Challenging Government Decisions: Small businesses, groups, or organizations that represent small businesses can challenge these government decisions. They can ask a specific office within the Small Business Administration to review the decision. This challenge must include clear reasons and support for why they believe the decision should be reviewed.

    4. Providing Solutions: When challenging a rule, the petitioner must suggest alternative solutions. This helps ensure that their concerns are not just heard, but also addressed in practical ways.

    5. Getting Consultation: Small businesses can get help on how to file their challenge or improve it, but they won’t be advised on whether to change or remove their challenge.

    6. Review Processes: There are specific steps for how these challenges are reviewed. This includes an initial check to see if the challenge is valid, and if it is, a full review will be conducted.

    This bill affects small businesses by potentially reducing unexpected costs and ensuring they have a say in the rules that affect them directly.

  17. Placed on the Union Calendar, Calendar No. 631.
  18. Committee on Small Business discharged.
  19. Reported (Amended) by the Committee on Judiciary. H. Rept. 118-761, Part I.
  20. Introduced in House

    This is a bill designed to make the rules for small businesses clearer in the United States. It focuses on ensuring that when new rules are made by the government, they consider how they will affect small businesses, including the unexpected costs these businesses might face.

    Firstly, the bill states when the government proposes a new rule, it must include a detailed check if small businesses could be affected by indirect costs. For example, if a rule is about one type of business, other small businesses that work with them might also feel the impact.

    Secondly, if a government agency says a new rule won’t majorly impact small businesses, they now have to do that within 10 days after making this decision. They can’t just make the statement and forget about it; they have to commit to their decision quickly.

    Additionally, there's a new process for small businesses to challenge these decisions. If a small business thinks an upcoming rule will hurt them and the government hasn’t considered this, the business can ask for a review. They need to explain clearly what problems the rule could cause and suggest ways to fix these issues.

    If a business asks for this review, the bill ensures that the request is checked quickly to decide if it needs more thorough investigation. If it does, the matter is looked into more deeply to see if the rule really is fair or needs changes. This part makes sure that businesses have a real chance to be heard before they are affected by new rules.