Yesterday, the House Judiciary Committee passed the Prove It Act of 2024, led by Congressman Brad Finstad (MN-01). This legislation is a key piece of legislation that ensures that federal agencies don’t add unnecessary burdens and barriers to small businesses without calculating the direct and indirect costs associated with them. Greater Mankato Growth was pleased to join with hundreds of other chambers of commerce from across the nation to support this legislation. We appreciate Congressman Finstad’s leadership on this issue to help relieve unnecessary burdens and barriers faced by small businesses in greater Mankato. Please see the full statement released by Congressman Finstad, including a quote from Andy Wilke, Executive Vice President, Greater Mankato Growth.

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WASHINGTON, D.C. (March 21, 2024) – Today, Congressman Brad Finstad (MN-01) released a statement after the House Judiciary Committee passed H.R. 7198, the Prove It Act of 2024, bipartisan legislation that was introduced earlier this year by Congressman Finstad, Congresswoman Yadira Caraveo (CO-08), and Congressman Nathaniel Moran (TX-01).

“Small businesses in southern Minnesota are being crushed by burdensome federal government regulations,” said Rep. Finstad. “The Prove It Act would give small businesses a seat at the table during the regulatory process by requiring government agencies to assess and limit the direct and indirect costs of their rules and regulations. Thank you to my colleagues who supported this commonsense legislation in committee, and I urge its swift consideration on the House Floor.”

Background:

In February 2024, Congressman Brad Finstad (MN-01), Congresswoman Yadira Caraveo (CO-08), and Congressman Nathaniel Moran (TX-01) introduced the bipartisan Prove It Act, which would strengthen protections for small businesses that were established through the Regulatory Flexibility Act. Senator Joni Ernst (R-IA) introduced the companion legislation in the U.S. Senate.

The Prove It Act is supported by Greater Mankato Growth, Rochester Area Chamber of Commerce, Job Creators Network, U.S. Chamber of Commerce, National, Federation of Independent Business, Independent Community Bankers Association, National Association of Insurance and Financial Advisors, National Small Business Association, International Franchise Association, Americans for Prosperity, Heritage Action for America, Owner-Operator Independent Drivers Association, Americans for Tax Reform, National Funeral Directors Association, Associated Equipment Distributors, and the National Sand, Stone, and Gravel Association.

Support for the Prove It Act from the First District:

“Businesses are struggling every day to serve their customers, clients, and communities. It’s hard enough to compete in one of the most difficult economies in a generation. Additional burdens and barriers from federal agencies only further exacerbates that challenge. Minnesota ranks toward the bottom of new business creation in the U.S. in part due to the high barriers created by both state and federal policy. The Prove It Act is necessary legislation that will reform the Regulatory Flexibility Act. It will remove avenues that federal agencies have used to circumvent the law that have been at the peril of small business owners. We urge Congress to step up and help give small businesses a fighting chance to build something special.” – Andy Wilke, Executive Vice President, Greater Mankato Growth

“The Rochester Area Chamber of Commerce is proud to support the Prove It Act of 2024. This legislation is critical to ensuring that federal agencies consider the costs of regulations on the small business community.” – Jonathon Krull, Public Affairs and Leadership Development Director, Rochester Area Chamber of Commerce

Support for the Prove It Act from Business:

“Job Creators Network applauds Representatives Finstad, Caraveo, and Moran for introducing this legislation that would provide needed relief to small businesses contending with overregulation. Their bill would protect small businesses from executive overreach by finally meaningfully holding government bureaucrats accountable for considering the small business impact of new regulations before they are imposed. And it would empower small businesses and their defenders to challenge certifications claiming proposed rules don’t significantly impact small businesses. Representatives Finstad, Caraveo, and Moran’s legislation would fulfill a key pillar of Job Creators Network’s American Small Business Prosperity Plan by reducing the regulatory burden on small businesses.” – Alfredo Ortiz, President and CEO, Job Creators Network

“The Prove It Act will close loopholes in the Regulatory Flexibility Act that have allowed federal regulators to shut out small businesses from decision making. Rep. Finstad, Rep. Moran, and Rep. Caraveo understand that small businesses provide oversized benefits to our economy, from job creation to innovation, and their legislation will prevent hidden regulatory costs and ensure agencies consider small business input before issuing new rules and regulations.” – Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce

“NFIB members annually rate ‘unreasonable government regulation’ as one of the top concerns facing small businesses. Unfortunately, the red tape and compliance burdens of small businesses continue to grow exponentially… The pace of regulation has significantly increased over the last three years. As of January 26, 2024, President Biden had imposed more than $454 billion of final rule costs and 279 million paperwork hours… That is why legislation like the Prove It Act is so important. The Prove It Act seeks to address the loopholes in the RFA by increasing small business input in the regulatory process and strengthening the requirements for agencies to examine the impacts of regulations on small businesses. NFIB supports the Prove It Act and urges Congress to promptly enact this legislation.” – Josh McLeod, Director of Federal Government Affairs, National Federation of Independent Business (NFIB)

“Too often, regulators are able to pay lip service to their responsibilities to mitigate the impact of federal regulations on Americas small businesses under the Regulatory Flexibility Act. The bipartisan, bicameral Prove It Act helps ensure small businesses get the consideration they deserve during the regulatory process, and offers clarity as well as meaningful pathways for redress. The National Small Business Association (NSBA) is proud to support this legislation.” – Todd McCracken, President & CEO, National Small Business Association (NSBA)

“Any American who has attempted to start a business or earn a living as their own boss understands that a law degree shouldn’t be a prerequisite for entrepreneurship; however, it often feels like it is. This legislation, H.R. 7198, will address this issue by giving small businesses a seat at the table as bureaucrats try to draft and implement new regulations.” – Marc Marie, Regulatory Policy Fellow, Americans for Prosperity

“The regulatory burden on insurance producers, registered representatives of broker-dealers, and financial advisors is often put in place without proper discussion or concern for the negative impact on the ability to conduct business or properly serve clients and consumers. Additionally, federal regulators often work to circumnavigate the RFA, which leads to a loss of growth and opportunity for these small businesses that represent Main Street America and make up an integral part of the community in which they work. That is why legislation like the Prove It Act is so important. The Prove It Act seeks to address the loopholes in the RFA by increasing small business input in the regulatory process and strengthening the requirements for agencies to examine the impacts of regulations on small businesses. NAIFA offers its full support to the Prove It Act and urges Congress to promptly enact this legislation.” – Michael W. Hedge, Jr., Senior Director of Government Affairs, National Association of Insurance and Financial Advisors

“Community banks, more than any other lenders, partner with the small businesses in their communities and are responsible for the majority of small business loans. They have a special interest in ensuring that small businesses are not hampered by excessive and inflexible regulatory burden. We believe your legislation will result in more flexibility agency rules that better accommodate small businesses… Thank you again for introducing this important legislation. We look forward to working with you to advance it into law.” – Rebeca Romero Rainey, President & CEO, Independent Community Bankers Association

“Not only are small businesses the backbone of America’s economy, they’re the backbone of America’s supply chain. Over 70% of American freight is transported exclusively by truck and 96% of trucking is made up of small business carriers. OOIDA and the 150,000 small business truckers we represent support the bipartisan Prove It Act to keep government overreach and burdensome overregulation off of the backs of the men and women behind the wheel who keep our economy moving. We thank Representative Finstad, Representative Caraveo, and Representative Moran for their leadership in Congress on this commonsense legislation.” – Todd Spencer, President of the Owner-Operator Independent Drivers Association

“I am writing on behalf of the over 400 members of the National Stone, Sand & Gravel Association (NSSGA), to express our strong support for the bipartisan Prove It Act that you recently introduced. The aggregates industry, like many others, has faced considerable challenges due to the increasing complexity and scope of federal regulations. These regulations often impose substantial direct and indirect costs on small businesses, which unlike larger entities, lack the resources to navigate these regulatory burdens effectively… The Prove It Act represents a significant step forward in ensuring that small businesses, including those within the aggregates sector, are not unduly burdened by regulations that can stifle innovation, reduce job creation, and hamper economic growth.” – Michele Stanley, Executive Vice President and Chief Advocacy Officer, National Sand, Stone, & Gravel Association

View the full report here.

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La xidhiidh:
Andy Wilke
Executive Vice President
Kobaca Mankato Weyn
507.382.8917
[email protected]