What changed between these versions
A substantive revision. v3 significantly narrows the scope of the bill by removing the extension of the statute of limitations for fraud under the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) programs. Additionally, v3 introduces a new requirement for the Attorney General to submit regular reports to Congress on Department of Justice activities related to Shutter Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs.
Overview
A handful of significant changes were made to the bill's operative provisions. · v3 narrows the scope of the statute of limitations extensions by removing certain programs while simultaneously adding a new oversight and reporting requirement for others.
The most significant change in v3 is the removal of the provisions extending the statute of limitations for fraud related to the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loans, which were present in v2. Concurrently, v3 introduces a new subsection requiring the Attorney General to provide regular reports to Congress on fraud enforcement activities for the Shutter Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs. Minor modifications were also made to the specific fraud statutes covered for SVOG and RRF, and the scope of these extensions was narrowed from "received or applied for" to "under this section" for grants.
Major additions
This new subsection mandates the Attorney General to submit reports to Congress every 90 days for five years following the Act's enactment. These reports must detail Department of Justice activities concerning the Shutter Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF) programs, including the number of investigations, prosecutions, recovered amounts, and referrals, broken down by state and territory where applicable.
This addition introduces a new oversight mechanism, requiring regular transparency and accountability from the Department of Justice regarding its enforcement efforts for the SVOG and RRF programs. It provides Congress with ongoing data to monitor fraud detection and prosecution in these specific pandemic relief initiatives.
Deletions
This subsection in v2 extended the statute of limitations to 10 years for criminal prosecution or civil enforcement actions related to fraud under certain Economic Injury Disaster Loans (EIDL) made in response to COVID-19.
The deletion removes the extended 10-year statute of limitations for EIDL fraud, meaning that such cases will now be subject to their original, generally shorter, statutory periods. This could potentially limit the time available for the Department of Justice to investigate and prosecute fraud in these programs.
This subsection in v2 extended the statute of limitations to 10 years for criminal prosecution or civil enforcement actions related to fraud under the Paycheck Protection Program (PPP).
The deletion removes the extended 10-year statute of limitations for PPP fraud, reverting these cases to their original, typically shorter, statutory periods. This change could reduce the window for prosecuting fraud associated with the significant number of loans issued under the PPP.
This subsection in v2 extended the statute of limitations to 10 years for criminal prosecution or civil enforcement actions related to fraud under the Paycheck Protection Program Second Draw Loans.
Similar to the PPP deletion, this removes the extended 10-year statute of limitations for fraud in PPP Second Draw loans, potentially shortening the period available for enforcement actions against fraudulent activities in this specific program.
Modifications
This modification narrows the applicability of the extended statute of limitations for SVOG fraud to only grants that are actually part of the program, potentially excluding fraudulent applications that did not result in a grant. The change in referenced statutes broadens the types of fraudulent conduct covered by including false statements to the government (18 U.S.C. 1001) and explicitly referencing the False Claims Act (31 U.S.C. 3802), while removing bank fraud (18 U.S.C. 1344) from the specific list. This clarifies and slightly redefines the scope of prosecutable offenses under the extended period.
Before
In v2, the 10-year statute of limitations applied to fraud "with respect to any grant received or applied for under this section," covering specific Title 18 and Title 31 codes, including 18 U.S.C. 1344 (Bank Fraud) and 31 U.S.C. 3801 (Definitions).
After
In v3, the 10-year statute of limitations applies to fraud "with respect to any grant for shuttered venue operators under this section." The list of covered fraud statutes was updated to include 18 U.S.C. 1001 (False Statements) and 31 U.S.C. 3802 (False Claims Act), while removing 18 U.S.C. 1344 (Bank Fraud).
This modification narrows the applicability of the extended statute of limitations for RRF fraud to only grants that are actually part of the program, potentially excluding fraudulent applications that did not result in a grant. The change in referenced statutes broadens the types of fraudulent conduct covered by including false statements to the government (18 U.S.C. 1001) and explicitly referencing the False Claims Act (31 U.S.C. 3802), while removing bank fraud (18 U.S.C. 1344) from the specific list. This clarifies and slightly redefines the scope of prosecutable offenses under the extended period.
Before
In v2, the 10-year statute of limitations applied to fraud "with respect to any grant received or applied for under this section," covering specific Title 18 and Title 31 codes, including 18 U.S.C. 1344 (Bank Fraud) and 31 U.S.C. 3801 (Definitions).
After
In v3, the 10-year statute of limitations applies to fraud "with respect to any restaurant revitalization grant under this section." The list of covered fraud statutes was updated to include 18 U.S.C. 1001 (False Statements) and 31 U.S.C. 3802 (False Claims Act), while removing 18 U.S.C. 1344 (Bank Fraud).
Scope
Meaningful expansion or narrowing — Changes are concentrated within Section 2, which constitutes the entirety of the operative text of the bill, affecting its core purpose and adding a new reporting requirement. — Yes, v3 represents a meaningful change in policy direction by significantly narrowing the scope of programs for which the statute of limitations is extended and by introducing a new, ongoing oversight and reporting mandate. — The changes to the specific fraud statutes in subsections (a) and (b) directly interact with and refine the types of criminal and civil actions that fall under the extended statute of limitations for SVOG and RRF. The deletion of subsections (c), (d), and (e) removes their interaction with the existing statutes of limitations for EIDL and PPP.
Impact analysis
Individuals and entities involved in fraud related to Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans.
This group benefits from a potentially shorter period of legal exposure.
In v2, these groups faced an extended 10-year statute of limitations for fraud. In v3, this extension is removed, reverting them to the original, generally shorter, statutes of limitations.
Individuals and entities involved in fraud related to Shutter Venue Operators Grants (SVOG) and Restaurant Revitalization Fund (RRF) grants.
The effect is mixed; a slight narrowing of scope for applications not resulting in grants, but a clarification/redefinition of covered fraud types.
In v2, the 10-year statute of limitations applied to grants "received or applied for." In v3, it applies to grants "under this section," removing "or applied for." Additionally, the specific fraud statutes covered were adjusted (adding 18 U.S.C. 1001, 31 U.S.C. 3802; removing 18 U.S.C. 1344).
Department of Justice (DOJ) and other federal enforcement agencies.
This group faces increased reporting obligations and congressional scrutiny.
In v2, the DOJ's activities were not subject to specific, recurring reporting requirements under this bill. In v3, the DOJ is mandated to submit detailed quarterly reports to Congress for five years on its enforcement activities related to SVOG and RRF programs.
Congress and the public.
This group gains increased transparency and oversight.
In v2, there was no mandated, recurring reporting on fraud enforcement for these programs. In v3, Congress and the public will receive regular, detailed reports on the DOJ's fraud enforcement activities for SVOG and RRF programs.