S.1199 - SBA Fraud Enforcement Extension Act (119th Congress)
Summary
S.1199, the SBA Fraud Enforcement Extension Act, aims to extend the statute of limitations for prosecuting fraud related to the Shuttered Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs. These programs were established under the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act of 2021, respectively, to provide relief during the COVID-19 pandemic. The bill extends the statute of limitations to 10 years after the date of the violation or conspiracy.
Expected Effects
The primary effect of this bill would be to give the government more time to pursue cases of fraud related to pandemic relief programs. This could lead to more prosecutions and civil enforcement actions against individuals or entities that defrauded these programs. Ultimately, this aims to recover misused funds and deter future fraudulent activities.
Potential Benefits
- Increased accountability for misuse of pandemic relief funds.
- Potential recovery of funds lost to fraud.
- Deterrent effect on future fraudulent activities related to government programs.
- Reinforces the integrity of government assistance programs.
- Provides law enforcement with more time to investigate complex fraud cases.
Potential Disadvantages
- Increased burden on the justice system due to potentially more prosecutions.
- Potential for pursuing cases based on limited evidence due to the extended timeframe.
- Could lead to legal challenges based on the extended statute of limitations.
- May disproportionately affect smaller businesses or individuals who made unintentional errors.
- The extended timeframe may create uncertainty for businesses that received funding.
Constitutional Alignment
The bill appears to align with the Constitution's grant of legislative power to Congress under Article I, Section 8, which includes the power to make laws necessary and proper for carrying out its enumerated powers, such as providing for the general welfare. The extension of the statute of limitations does not appear to infringe on any specific constitutional rights, such as due process, as long as the extended period is applied prospectively and provides fair notice.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).