Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, H.R. 7198, the Prove It Act, represents the latest effort by Republicans to dismantle the regulatory process, giving well-…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 7198, the Prove It Act, represents the latest effort by Republicans to dismantle the regulatory process, giving well- resourced special interests a powerful new cudgel to wield against regulations, while causing harm to the very small entities the bill purports to help.
This legislation would vest enormous and unreviewable authority over agency rules to the chief counsel of the Office of Advocacy within the Small Business Administration, a chronically underfunded office that has not even had a Senate-confirmed leader since 2017.
It authorizes the chief counsel, unilaterally and without review, to exempt large parts of the business community from proposed rules if he or she determines that an agency did not properly consider how a proposed rule would affect small entities.
Not only would this broad and vaguely defined authority apply to proposed regulations, but the bill would also charge the chief counsel with tracking agencies' completion of mandatory reviews of existing rules every 10 years. If they find that an agency failed to conduct the required review of the rule, they can simply suspend operation of the rule.
I note that, while this legislation would impose significant new burdens on the SBA, it would provide no additional funding to carry out these duties, putting a further strain on the agency's ability to assist small businesses.
Our public agencies are responsible for writing rules that protect our community from harm. They make sure that the toys our children play with are safe. They make sure that the vehicles we drive and the buildings we live in are up to code. They make sure that the legislation we pass in Congress for tackling issues like climate change and public health are implemented as we intend.
The Prove It Act would grind all of this to a halt. Rules that would ban toxic chemicals or take contaminated food out of the market would hang in limbo while petitions mount before this single official to complete his or her reviews, if he or she can ever complete them at all.
This bill is not about lessening the burden on small businesses. By law, agencies already must take small businesses into account. These small entities already have power through the Office of Advocacy to champion their concerns, so the bill is entirely unnecessary if that was truly the purpose of the bill.
In reality, this bill is about giving big businesses the ability to shut down the regulatory process. Any group that merely purports to represent small businesses, no matter how large or well-resourced they may be, could petition this one official to block a pending rule they do not like. There would be no limit to how many times they do this. This is a recipe for chaos and dysfunction. That, of course, is the point.
Republicans do not want to empower the agencies that ensure the drugs we take are safe, that ensure child car seats protect the most vulnerable among us, and that enforce our competition laws to ensure that small businesses have a chance to thrive. They want to throw sand in the gears of these agencies to ensure that they never issue the regulations we depend on to keep us safe.
This bill would do little to help small businesses, but it could prove to be a windfall for powerful companies and special interests. It is no surprise, therefore, that this legislation is right out of the Project 2025 playbook, which calls for ``supercharging'' the Office of Advocacy at the SBA so the entity can ``dismantle extreme regulatory policies and advance limited-government reforms.''
Republicans are so determined to carry out this dismantling of the regulatory process that they are even willing to violate their own House rules against legislation that will increase mandatory spending, ignoring a CBO estimate that the bill would add millions of dollars to the deficit.
We all want to ensure that small businesses can thrive, but this bill would not help them. Instead, it would create uncertainty and chaos while giving big businesses a new tool to dismantle the regulatory process that protects public health and safety and that protects consumers from rising costs.
Mr. Speaker, I urge all Members to oppose this legislation, and I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentlewoman from Texas (Mrs. Lee Carter), the newest Member of the Judiciary Committee, proudly carrying on her mother's legacy.
Mr. Speaker, I yield 3 minutes to the gentlewoman from Colorado (Ms. Caraveo).
Mr. Speaker, over 200 labor, consumer protection, and environmental organizations oppose H.R. 7198, the Prove It Act.
Mr. Speaker, I include in the Record letters of opposition from the Coalition
for Sensible Safeguards, Earthjustice, and Public Citizen.
Coalition for
Sensible Safeguards,
December 4, 2024.
Representative Mike Johnson,
Speaker, House of Representatives,
Washington, DC.
Representative Hakeem Jeffries,
Democratic Leader, House of Representatives,
Washington, DC.
Dear Speaker Johnson and Democratic Leader Jeffries: The
Coalition for Sensible Safeguards (CSS), an alliance of over
200 labor, scientific, research, good government, faith,
community, health, environmental, and public interest groups,
is writing regarding the House of Representatives'
consideration of the Prove It Act of 2024, H.R. 7198 which
CSS strongly opposes.
The Prove It Act would expand the authority of the Small
Business Administration's Office of Advocacy while failing to
address fundamental flaws of the Regulatory Flexibility Act.
This bill would slow down the regulatory process and empower
an office that has been neither appropriately focused on
small business concerns nor adequately transparent in how it
conducts its actions.
The ostensible purpose of the Regulatory Flexibility Act is
to ensure that small businesses continue to play a role in
the U.S. economy. In practice, though, the implementation of
the Regulatory Flexibility Act has failed to achieve this
basic purpose, as it has instead been wielded as a blunt
weapon to weaken regulatory requirements for firms of all
sizes, often at the behest of large corporations and the
trade associations they dominate.
The result is that protections of public health, safety,
and the environment have been sacrificed without
substantially improving the competitive position of small
businesses in their respective industrial sectors relative to
that of larger firms. These flaws are most apparent in the
Regulatory Flexibility Act's burdensome analytical
requirements, which are designed to weaken regulatory
safeguards rather than promote small business
competitiveness. H.R. 7198 does not fix this basic problem,
however. Instead, it would expand those analytical
requirements and make them more onerous.
The Prove It Act would enhance the authority of the Small
Business Administration's Office of Advocacy in harmful ways.
H.R. 7198, in Section 2(a)(3), would allow for endless
petitions from ``Any small entity, group of small entities,
or organization representing the interests of small
entities'' that challenge a rulemaking agency's certification
that its rule would not have a significant economic impact on
a substantial number of small entities. In many cases, these
petitions would trigger burdensome hearings conducted by the
Chief Counsel for the Office of Advocacy, after which the
Chief Counsel could then force the rulemaking agency to
retract the certification and instead perform the full suite
of burdensome analyses mandated by the Regulatory Flexibility
Act. The bill also provides for expanded judicial review
opportunities against agency certifications, which would
further tie up rulemakings in wasteful and time-consuming
litigation.
We urge members of the House of Representatives to consider
reforms that would instead place greater constraints on the
Office of Advocacy to ensure that it is actually helping,
rather than harming, small businesses. A scathing 2014 report
by the Government Accountability Office (GAO) found
significant deficiencies in the Small Business
Administration's Office of Advocacy's compliance with its own
internal procedures when it intervenes in regulatory actions
or engages in commissioning research on regulatory costs to
small businesses. Of greatest relevance, GAO found that: (1)
the Office had no policies dictating when individual staff
should intervene in individual rulemakings, making it
susceptible to improper industry influence; and (2) the
Office repeatedly cited small business input in its
regulatory comments but could provide no evidence or
documentation supporting this input.
Evidence has also demonstrated the extent to which the
Office of Advocacy has been captured by regulated industry.
The Office has often worked with large trade associations to
weaken rules in ways that benefit large businesses, at the
expense of small ones. These interventions have the effect of
harming small businesses, contrary to the Office's statutory
mission. Nevertheless, this bill would give the Small
Business Administration's Office of Advocacy even greater
authority to intervene in and block agency rules.
Additionally, the Prove It Act would further delay needed
regulatory actions--causing real harm to public health and
safety and the environment--without improving the quality of
agency decision-making. Numerous studies have demonstrated
how existing regulatory analyses, and procedural requirements
contribute to extensive delays of agency rulemaking. These
studies confirm that existing Regulatory Flexibility Act
requirements are among the biggest contributors to these
delays. By creating new analytical and procedural
requirements, this bill would only worsen those delays. These
additional delays are unjustifiable because they do not
result in better regulatory decisions.
Finally, the bill would empower the federal judiciary to
block regulations by making agency compliance with its new
analytical and procedural requirements judicially reviewable.
This would provide judges with an additional new tool for
blocking needed public protections.
Providing the Small Business Administration's Office of
Advocacy with more authority to block, delay, or weaken new
regulatory safeguards, without enacting the significant
reforms recommended by GAO and others, will leave the public
even more at risk to health, safety, and economic security
threats. The numerous petitions, time-consuming hearings, and
expanded judicial review that this legislation would allow
will thwart needed protections while failing to help small
businesses with better designed regulations.
CSS urges the House of Representatives to oppose the Prove
It Act and encourages the Committee to evaluate proposals
that offer real and meaningful reforms to strengthen the
regulatory process, such as H.R. 1507, the Stop Corporate
Capture Act.
We hope to work with the House of Representatives to ensure
that our regulatory process is working effectively and
efficiently to protect the American public.
We strongly urge opposition to the Prove It Act of 2024,
Mr. Speaker, I yield 3 minutes to the distinguished gentleman from Ohio (Mr. Landsman).
Mr. Speaker, I yield 5 minutes to the gentlewoman from New York (Ms. Velazquez), the distinguished ranking member of the Committee on Small Business.
Mr. Speaker, I yield myself the balance of my time to close.
Mr. Speaker, the Prove It Act is just the latest in a long line of Republican bills meant to undermine or block agency rulemaking. If this legislation is enacted, every single rule--past, present, and future-- would be funneled for review through a single official in a chronically underfunded office within the Small Business Administration. This one person would be granted unreviewable and unilateral power to block or suspend lifesaving regulations that ensure that we have clean air to breathe, clean water to drink, and safe food to eat.
I urge Members to oppose this dangerous legislation, and I yield back the balance of my time.