HomeMy WebLinkAboutMINUTES - 06271995 - C45 TO: i ~BOARD OF SUPERVISORS
y Contra
FROM: Gary T. Yancey, District Attorney
S Costa
C0 C v
County
DATE: June 27 , 1995
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 , 1995 through
June 30 . 1996
SPECIFIC REQUESTS)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 Automobile Insurance Fraud
Prosecution Program for the period of July 1, 1995 through June
30, 1996 , in the amount of $188, 013 (State Funds) .
II . FINANCIAL IMPACT
None . The grant application in the amount $188, 013 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 prosecution
of automobile insurance fraud. Supplantation is prohibited.
Expenditures and revenue for these positions are included in the
District Attorney' s 1994/95 budget .
III. REASONS FOR RECOMMENDATION/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 concentrated criminal activity in
insurance fraud. While originally the problem was confined to
the Los Angeles area, recent stat isti s confirm that the problem
is rapidly becoming a statewide pro M.
CONTINUED ON ATTACHMENT: YES SIGNATURE: /
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMI
APPROVE OTHER
SIGNATUREM:
:
ACTION OF BOARD ON T 19 9.5-
APPROVED AS RECOMMENDED OTHER
IT IS BY THE BOARD ORDERED that Resloution 95/297 is ADOPTED.
VOTE OF SUPERVISORS
/ I HEREBY CERTIFY THAT THIS IS A TRUE
�L UNANIMOUS(ABSENT 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.p
CC: See Attachment ATTESTED 1 p-� 0? f 9 qff
PHIL ATCHELOR,CLERK OF THE BOARD OF i
SUPERVISORS AND COUNTY ADMINISTRATOR
L
M382 (10/88) BY _DEPUTY
f
III. REASONS FOR RECOMMENDATION/BACKGROUND - continued
The Department of Insurance Fraud Bureau was established in
1979 . However, resources committed to fighting fraud were
limited. In 1989 the Legislature enacted, through SE2344 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 increasing the number of prosecutions for auto
insurance fraud statewide. In 1993 and 1994, the number of
suspected fraudulent claims referred to the Fraud Bureau has
tripled. The number of suspected fraudulent claims continued to
increase in 1995 . 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.
IV. CONSEQUENCES OF NEGATIVE ACTION
Failure to approve this recommendation would result in the
inability of the District Attorney to apply for $188, 013 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.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on June 27, 1995 , , by the following vote:
AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop
NOES: None
.ABSENT: None
ABSTAIN: None
Resolution No. 95/297
SUBJECT: AUTOMOBILE INSURANCE FRAUD PROSECUTION
3RESOLIJT20Nf THE GOVERNSNG BOARD 1995/96
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 Supervi rs on the date shown.
ATTESTED: %Z 7 1'7 S
�
PHIL B CHEl:OR,Cierl of the Board w
of Supervisors and County Administrator }
r
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
Auditoz Controller