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The Prove It Act amends federal regulatory procedures to require greater transparency and analysis of how proposed rules affect small businesses. It expands the regulatory flexibility analysis requirements to include indirect costs on small entities in the supply chain and other connected businesses, and establishes a new petition and review process allowing small entities to challenge agency certifications that a rule will not have significant economic impact. If the Small Business Administration's Chief Counsel determines a rule would significantly impact small businesses, the agency must conduct full regulatory flexibility analyses; agencies that fail to cooperate with the review process face the penalty that the final rule cannot apply to small entities.
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