S. 495 — Prove It Act of 2025

This section amends the Regulatory Flexibility Act (chapter 6 of title 5, U.S. Code) to address initial regulatory flexibility analyses and certifications that a proposed rule will not have a significant economic impact on a substantial number of small entities (SEISNOSE certifications), as follows: (1) requires the initial regulatory flexibility analysis under section 603(b) to include, where feasible, reasonably foreseeable potential indirect costs on small entities that purchase from or sell to directly regulated entities, are regulated by other governments due to the rule, or are subject to other agency rules as a result; (2) requires agencies to notify the Chief Counsel for Advocacy of the Small Business Administration not later than 10 days after completing a SEISNOSE certification under section 605(b); and (3) establishes new section 605A to allow small entities or their representatives to petition the Chief Counsel for review of a SEISNOSE certification, specifying detailed petition contents (e.g., identifying information, issues with the certification, supporting data, proposed alternatives), optional pre- or post-filing consultations limited to procedural assistance, and a prima facie review process under which the Chief Counsel must determine within 10 days after receipt whether the petition merits further review (closing it otherwise). (As background, the Regulatory Flexibility Act requires federal agencies to assess regulatory impacts on small businesses, including initial analyses and SEISNOSE certifications published with proposed rules.)

This section requires the head of an agency promulgating a rule likely to have a significant economic impact on a substantial number of small entities to publish all guidance documents and other relevant documents—including any updated guidance interpreting the rule—on regulations.gov or a similar website and to allow public comments on those documents. (Thus, this facilitates small entity access to and feedback on agency interpretations of such rules under the Regulatory Flexibility Act.)

This section amends periodic review procedures under 5 U.S.C. §610 for agency rules with significant economic impacts on a substantial number of small entities (i.e., requiring review every 10 years to determine if rules should be continued, amended, or rescinded to minimize such impacts), as follows: (1) adds to the review factors any indirect costs described in the initial regulatory flexibility analysis under 5 U.S.C. §603(b)(6) or arising during the 10-year review period; and (2) requires that, if an agency fails to review a rule within 10 years, the Small Business Administration's Chief Counsel for Advocacy notify the agency of rule inactivation, the agency publish Federal Register notice of inactivation and solicit reinstatement comments, and—upon agency determination to reinstate based on comments—complete review within 180 days and reinstate without notice-and-comment rulemaking. The inactivation requirement applies to final rules issued in the five years preceding enactment or thereafter.