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To: BOARD OF SUPERVISORS f
Costa 1
From: Gary T. Yancey, District Attorney County s°
Date: July 13, 1993
Subject: Approval for Submission and Execution of a Contract With the State of California,
Department of Insurance, for the Purpose of Combatting Workers' Compensation
Fraud for the Period July 1, 1993 through June 30, 1994
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) &BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION
Authorize the District Attorney to submit an application and execute a grant award
contract, including any extensions and amendments thereto, with the State of
California, Department of Insurance, for. funding of the prosecution of Workers'
Compensation Fraud for the period July 1, 1993 through June 30, 1994, in the
amount of$436,971.
II. FINANCIAL IMPACT
None.
The grant application is in the amount of$436,971 to fund salary and benefit costs
for two (2) attorneys, one-half(1/2) clerk, and two (2) senior inspectors assigned to
the program. Supplantation is prohibited. Position and budget adjustments will be
submitted for Board action if the application is approved by the State.
Revenue in the amount of $192,435 is built into the District Attorney's 1993/94
budget to fund the program with a lower level of attorney and investigative support.
If the requested funding level is approved by the State, budget and position
adjustments will be submitted for Board action, as appropriate.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The Legislature has determined that Workers' Compensation insurance fraud is a
major contributor to the high cost of doing business in this state. The cost of
Workers'Compensation to employers has almost doubled to$10'billion in less than
ten years. SB 1218 (Presley) was enacted to put teeth into the law and resources
into enforcement to tackle the growing problem of Workers'Compensation insurance
fraud.
During 1991, only four claims were submitted to this office for prosecution.
However, beginning this year, additional state enforcement staff authorized by
AB 1673 put more emphasis on Workers' Compensation insurance fraud. During
FY92-93, twenty-eight(28)cases were submitted. The State anticipates suspected
fraudulent claim reports for Workers' Compensation will quadruple.
If the grant is approved, it will allow the District Attorney to place specially trained
staff in our Criminal Fraud Division who will be able to concentrate on the growing
problem of insurance fr
Continued on Attachment: XYes Signature:
_Recommendation of County Administrator _Recom en ation of Board Committee
Approve Other
Si atu s :
Action of Board on Approved as Recommended Other
Vote of Supervisors I hereby certify that this is a true and correct copy of an action taken and
Unanimous (Absent
entered on the minutes of the Board of Supervisors on the date shown.
�'" ) q n
Ayes: Noes: ATTESTED: AUG 1 O 1993 199_
Absent: Abstain: Phil Batchelor, Clerk of the Board of Supervisors
and County Administrator
cc: District Attorney
County Administrator, ATTN: G.Roemer
Auditor-Controller
By: Deputy
IV. CONSEQUENCES OF NEGATIVE ACTION
Failure to approve this recommendation would result in the inability of the District
Attorney to apply for $436,971 in state funds designated for use by Contra Costa
County in the prosecution of Workers' Compensation insurance fraud. Any county
which fails to submit their application shall not be considered for funding, and their
undistributed funds will be returned to the Department of Insurance fund to be
reprogrammed.
WCIF.RES/JUL93
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