"House Passes 'Prove It Act' to Shield Small Businesses from Impact of New Regulations"

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21 days ago - Politics

In a recent decision, the U.S. House of Representatives passed a bill known as the "Prove It Act of 2024." The vote was driven mainly by Republicans who supported the bill. Here's what the bill aims to achieve and why it matters for small businesses.

The "Prove It Act of 2024" is designed to ensure that when the government makes new rules, they clearly consider how those rules will affect small businesses. Here are the two big changes the bill introduces:

  1. Government agencies must now perform a more thorough analysis. This means when a new rule is proposed, the agency must look at all possible indirect effects on small businesses. This includes looking at costs faced by businesses that deal with companies directly impacted by the new rule or those affected by other government rules because of the new rule.

  2. If a small business, or a group representing them, believes the agency wrongly claims that a new rule won’t significantly impact them, they can challenge this decision. They would need to send a petition to the Chief Counsel for Advocacy at the Small Business Administration, explaining why they disagree and suggesting other solutions.

This act intends to help small businesses understand and prepare for new government regulations that might affect their daily operations. By making these changes, the goal is to make sure that small businesses are treated fairly and can avoid unexpected costs. It also creates a more supportive environment for small businesses to grow and succeed.

In simple terms, the "Prove It Act of 2024" is like giving small businesses a special shield. This shield protects them from surprise costs and rules that might harm them without warning. With this shield, small businesses can have a better chance to flourish.

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.

404 votes

Yes

208

No

196

Not Voting

28

  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.