S. 1430 would establish new federal crimes related to representative payees who misuse payments received from the Federal Employees Retirement System and the Civil Service Retirement System. (A representative payee is a person or an organization that manages federal retirement benefits for recipients who are unable to do so themselves.) Enacting S. 1430 would enable the government to pursue cases that it otherwise would not be able to prosecute. CBO expects that only a relatively small number of offenders would be affected, however, so any increase in costs for law enforcement, court proceedings, or prison operations would not be significant. Any such costs would be subject to the availability of appropriated funds.
Because those prosecuted and convicted under S. 1430 could be subject to civil and criminal fines, the federal government might collect additional amounts. Civil fines are recorded in the budget as revenues. Criminal fines also are recorded as revenues, deposited in the Crime Victims Fund, and later spent without future appropriation action. CBO estimates that the revenues and spending associated with those penalties would not be significant in any year because of the relatively small number of cases likely to be affected.