PROVE IT Act of 2016

Providing Retrospective Observations Validating Economics and Increasing Transparency Act of 2016 or the PROVE IT Act of 2016 This bill requires a federal agency that publishes a final major rule in the Federal Register to publish, biannually while the rule remains in effect, a report on the benefits and costs of such rule to regulated entities. The report shall: assess the impacts of the rule on such entities, include a determination about how the actual benefits and costs of the rule have varied from those anticipated when the rule was issued, assess the effectiveness and benefits of the rule in producing its regulatory objectives, and be reviewed by the Office of Information and Regulatory Affairs (OIRA) when required under executive order. The agency shall: (1) within 90 days after determining that the cost of a rule to regulated entities has exceeded the cost anticipated, report to Congress on the effectiveness and necessity of, and lower-cost alternatives to, the rule; and (2) reopen the public docket to receive additional comments and consider modifications or alternatives that reduce costs and increase benefits to regulated entities. The bill defines "major rule" as any rule that OIRA finds has resulted in or is likely to result in: an annual effect on the economy of $100 million or more; a major increase in costs or prices for consumers, individual industries, government agencies, or geographic regions; or significant adverse effects on competition, employment investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises.