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HomeMy WebLinkAboutRESOLUTIONS - 01011997 - 1997-335 .47 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on ,June 24, 1997 _ , by the following vote: AYES: Supervisors Rogers, Uilkema, Gerber, Canciamilla, DeSaulnier NOES: None ABSENT: None ABSTAIN: None SUBJECT: AUTOMOBILE INSURANCE FRAUD PROSECUTION Resolution No. 97/ 335 RESOLUTION OF THE GOVERNING BOARD 1997/98 Whereas the Board of Supervisors, Contra Costa County, desires to undertakes a certain program designated as the Automobile Insurance Fraud Prosecution Program to be funded in part from funds made available under the authority of California Insurance Code section 1872.8 and administered by the California Department of Insurance (hereinafter referred to as DOI). NOW, THEREFORE, BE IT RESOLVED that the District Attorney of Contra Costa County is authorized to execute on behalf of the Board of Supervisors the Grant Award Agreement including any extensions or amendments thereof. IT IS AGREED that any liability arising out of the performance of this Grant Award Agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The State of California and the California Department of Insurance disclaim any responsibility for such liability. BE IT FURTHER RESOLVED that the grant funds received hereunder shall not be used to supplant expenditures controlled by this body. I tomy awft tit title is a ft%and a rr"OW of •a aetien tr'�• and artered ft m1nuft d-lo OOard at Wer+: , ors an tt:,'" h -Tune 24, pH+.L-.i:.MELCR,G:erk^t t"beam a#supemem and County cc: Orig. Department: District Attorney ( 5 certified copies ) County Administrator, ATT.: George Roemer ,Auj#I o C olle Contra Costa TO: BOARD OF SUPERVISORS 44County FROM: Gary T. Yancey, District Attorney DATE: June 24, 1997 SUBJECT: Approval For Submission and Execution of Contract With the State of California, Department of Insurance, for the Purpose of Combating Automobile Insurance Fraud for the Period of July 1,1957 through June 30,1998. REQUEST(S)OR RECOMMENDATIONS&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 Automobile Insurance Fraud Unit for the period July 1, 1997 through June 30,1998, in the amount of$192,736. IL Financial Impact None. The grant application will fund the salary and benefits for an attorney, investigator, and one-half clerk assigned to the program. The automobile insurance fraud award is allocated from a trust fund financed by an assessment per insured vehicle payable by the insurer. Of this amount, approximately one-half is earmarked for distribution to district attorneys for enhanced prosecution of automobile insurance fraud. Supplantation is prohibited. Expenditures and revenue for these positions are included in the District Attorney's 1997/98 proposed budget III. Reasons for Recommendations/Background The Legislature has determined that one of the significant factors driving up the costs of auto insurance is fraud. While fraud is recognized as a growing problem across the country, California is an area of concerted criminal activity in insurance fraud. While originally the problem was c fined to the Los Angeles area, recent statistics confirm that the problem is rapidly becoming a statewide conte CONTINUED ON ATTACHMENT: YES SIGNATURE• + RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD C ITTEE �j APPROVE OTHER SIGNATURE($): ACTION OF BOARD ON _2 A1C1CI7 APPROVED AS RECOMMENDED ✓ OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ASSENT ) AND CORRECT COPY OF AN ACTION AYES: NOES: TAKEN AND ENTERED ON THE MINUTES ASSENT: ABSTAIN: Of THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Robert E. Law(313-1128) ATTESTED JUN 2 4 1997 cc: CAO-George Roemer PHIL BATCHELOR,CLERK OF THE.BOARD DA-Renee Goldstein OF SUPERVISORS AND COUNTY ADMINISTRATOR Auditor Controller BY DEPUTY The Department of Insurance-Fraud Bureau was established in 1979.However,resources committed to fighting fraud were limited.. In 1989 the Legislature enacted,through SB 2344 and SB 1103, statutes which provided resources for enhanced automobile insurance fraud investigation and prosecution. That investment has resulted in dramatically increasing the number of prosecutions for automobile insurance fraud statewide. The implementation of the mandated carrier-based special investigation units and the Automobile Insurance Claims Depository will operate to uncover large numbers of fraudulent claims which had gone undetected before the existence of those programs. IV. CONSEQUENCES OF NEGATIVE ACTION Failure to approve this recommendation would result in the inability of the District Attorney to apply for$192,736 in state funds designated for use by Contra Costa County in the prosecution of automobile insurance fraud.A county which fails to submit this application shall not be considered for funding, and their undistributed funds shall be returned to the Department of Insurance to be reprogrammed.