HomeMy WebLinkAboutRESOLUTIONS - 01012001 - 2001-340 G7, . ( /
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution on August 7, 2001 , by the following vote:
AYES: SUPERVISOR GIOIA, GERBER, DeSAULNIER, GLOVER, and UILKEMA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Resolution No. 2001 ta40
SUBJECT: AUTOMOBILE INSURANCE FRAUD PROSECUTION PROGRAM
RESOL UTION OF THE GOVERNING BOARD
WHEREAS the Board of Supervisors, Contra Costa County, desires to undertake 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.
NOW,THEREFORE, BE IT RESOLVED that the District Attorney of Contra Costa County is authorized, on
its behalf, to submit the proposal to the California Department of Insurance and is authorized to execute on its
behalf 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.
hereby certify tl FF' t'1 is is a true and correct
copy of an action,; tul<an and entered on the
minutes of the Board of Supervisors on the
date shown.
ATTESTED:
JOHN SWEET J, Clerk of the Board
of S erviso snd qqunty dministrator
By Deputy
Department: District Attorney (5 certified copies)ATTN: Rende Goldstein
County Administrator, ATTN: (George Roemer)
Auditor Controller
To: BOARD OF SUPERVISORS
FROM: Gary T. Yancey , - Contra
0
0
District Attorney Costa
DATE: July 16, 2001 ... Ci o U n ty
SUBJECT: Approval for Submission and Execution of Contract with the State Department of Insurance for the
Purpose of Combating Automobile Insurance Fraud for the Period July 1, 2001 through June 30, 2002
SPECIFIC REQUEST(S)OR RECOMMENDATIONS&BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION
Approve and 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 Prosecution Program for the period July 1, 2001 through June 30, 2002,
in the amount of$ 349,287 (State funds-budgeted)
II. FINANCIAL IMPACT
None. The grant application will fund salary and benefits for an 1.5 FTE attorney, investigator and one-half FTE
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 the grant positions are included in the District Attorney's 2001/02
proposed budget.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The Legislature had determined that one of the significant factors driving up the costs of auto insurance is fraud.
While fraud is recognized as growing problem across the country, California is an area of concerted criminal
activity in insurance fraud. Although originally the problem was contained in the Los Angeles are, recent statistics
confirm that the problem is rapidly becoming a statewide concern.
The Department of Insurance Fraud Bureau was established in 1979. However,resources committed to fighting
fraud were limited. In 1989,the Legislature enacted,though SB 2344 and SB 1103, statutes which provided
resources for enhanced automobile insurance fraud investigation and prosecution. That investment has resulted in
increasing the number of prosecutions for automobile insurance fraud statewide. The implementation of mandated
CONTINUED ON ATTACHMENT: X YES SIGNATURE: 10-ri� '/_ dxa�
r
&-KECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
6,,OPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD �� (� APPROVED AS RECOMMENDED _K OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
y' UNANIMOUS(ABSENT 1 �w� ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
Contact: Brain Hast (646-2522) ATTESTED 7 �1
CC: CAO-George Roemer JOHN SWEET N,CLERK OF THE BOARD OF
DA-Rende Goldstein SUP VISORS AND COUNTY ADMINI TRATOR
Auditor-Controller
BY C�' ° �"".DEPUTY
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 the recommendation would result in the inability of the District Attorney to apply for 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.