HomeMy WebLinkAboutMINUTES - 07121994 - 1.74 Contra -
Costa
ounty
TO: Board of Supervisors C �t
FROM: Gary T. Yancey, District Attorney
DATE: June 17, 1994
SUBJECT: Approval For Submission and Execution of Contract With the State of California, Department of Insurance, for the
Purpose of Combatting Automobile Insurance Fraud for the Period of July 1, 1994 through June 30, 1995
SPECIFIC REQUEST(S) OR RECOMMENDATION(S)& BACKGROUND AND JUSTIFICATION
2 _ RE COMMENDED ACT ION
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 automobile insurance fraud for the period July 1, 1994
through June 30, 1995, in the amount of $290,047 .
XX _ F 3ENANO IAL IMPACT
None. The grant application in the amount $290,047 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 a current assessment of $1. 00 per insured
vehicle payable by the insurer. Of this amount, approximately one-half
is earmarked for distribution to district attorneys for enhanced
prosecut,ion of automobile insurance fraud. Supplantation is prohibited.
Expenditures and revenue for these positions are included in the
District Attorney' s 1994/95 proposed budget.
REASONS FOR RECOMMENDAT 2 ON/HACKGROiJND
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 concentrated criminal activity in insurance fraud. While
originally the problem was confined to the Los Angeles area, recent
statistics confirm that the problem is rapidly becoming a statewide
problem.
The Department of Insurance Fraud Bureau was established in 1979.
However, resources committed to fighting fraud were limited. In 1989
the Legislature enacted, through SB2344 and subsequently through SB1103
in 1990, to enhance resources for auto insurance fraud investigation and
prosecution through a per vehicle surcharge in California. That
investment has resulted in dramatically increasih the number of -
CONTINUED ON ATTACHMENT: % YES SIGNATURE: //V V, �]
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATI Nf F BOA C MMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE AND
UNANIMOUS(ABSENT 1 CORRECT COPY OF AN ACTION TAKEN AND ENTERED
AYES: NOES: ON THE MINUTES OF THE BOARD OF SUPERVISORS
ABSENT: ABSTAIN: ON THE DATE SHOWN.
cc: District Attorney ATTESTED
Auditor-Controller UPhil atchelo ,Clerk ol the Board
County Administrator of Su ervisors and County Administrator
contact: R. Goldstein 646-4534
By: � �,.a �0 0 Deputy
prosecutions for auto insurance fraud statewide. In the past two years,
the number of suspected fraudulent claims referred to the Fraud Bureau
has tripled. Both the implementation of the newly mandated carrier-
based special investigative units to identify and report fraud and the
Automobile Insurance Claims Depository to receive and analyze claims for
fraud will operate to uncover large numbers of fraudulent claims which
now go undetected.
=V _ CON SEQUENCE S OF NEGAT=VE ACT 2 ON
Failure to approve this recommendation would result in the inability of
the District Attorney to apply for $290,047 in state funds designated
for use by Contra Costa County in the prosecution of automobile
insurance fraud. A county which fails to, submit their application shall
not be considered for funding, and their undistributed funds shall be
returned to the Department of Insurance fund to be reprogrammed.
1 .-7
' RESOLUTION 94/353
THE BOAR® OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on July 12 - 1994 by the following vote:
AYES: Supervisors Smith, Bishop, DeSaulnier , Torlakson and Powers
NOES: None
ABSENT: None
ABSTAIN: None
SUBJECT: AUTOMOBILE INSURANCE FRAUD PROSECUTION
RE SOLLTT=ON THE GOVERN=NG BOARD 1 9 9 4/9 5
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 (hereafter 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 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 hereby certify that this Is a true and correct copy of
an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: I V-LU I a` • � -'`,
PHIL BAVCHELbR,Clerl of the Board
of Supervisors and County Administrator
8v - � R�Q-�Q•� ,Deputy
cc: Orig. Department: District Attorney ( 5 certified copies)
Sheriff-Coroner ( 5 certified copies)
County Probation officer ( 5 certified copies)
County Administrator, ATTN: George Roemer
Auditor Controller
i