HomeMy WebLinkAboutMINUTES - 05211996 - C41 BOARD OF SUPERVISORS C.y�
FROM: Gary T. Yancey, District Attorney
- Contra
a Costa
DATE: May 14, 1996
r County
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, 1996 through June 30, 1997
SPECIFIC 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
prosecution of automobile insurance fraud for the period July 1, 1996
through June 30, 1997, in the amount of $191, 438 . 00 (State Funds) .
II. FINANCIAL IMPACT
None . The grant application in the amount $191, 438 . 00 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 1996/97 proposed
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
statistics confirm that the problem is r p dly becoming a statewide
problem.
CONTINUED ON ATTACHMENT: XX YES: SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMI E
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED r _ OTHER
VOTE OF SUPERVISORS
I HEREBY CERIFY THAT THIS IS A TRUE
i� UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPTERVISORS ON THE DATE SHOWN.
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Contact: ATTESTED
CC: District Attorney - Attn: Rene Goldst6in PHIL BATCHE R,CLERK OF THE BOARD OF
CAO - Justice System Programs SUPERVISORS AND COUNTY ADMINISTRATOR
Auditor Controller
BYA , DEPUTY
1' t
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
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 $1911438 . 00 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.
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THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on Ma)z 21 , 1996 , by the following vote:
AYES: Supervisors Rogers, Bishop, DeSaulnier, Torlakson, Smith
NOES: None
ABSENT: None
ABSTAIN: None
SUBJECT: AUTOMOBILE INSURANCE FRAUD PROSECUTION
Resolution No. 96/228
RESOLUTION OF THE GOVERNING BOARD 1996/97
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 correcteopy of
an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: ay. May 21; 1996
PHIL BATCHELGR,clerk of the Board
of Supervisors and county Administrator
By F �3 eputy
cc : Orig. Department : District Attorney (5 certified copies)
County Administrator, ATTN: George Roemer
Auditor Controller