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HomeMy WebLinkAboutMINUTES - 05012007 - C.32 SE._L TO: BOARD OF SUPERVISORS '�•'�=-��� 1---��'� Contra FROM: ROBERT KOCHLY, DISTRICT ATTORNEY o; Costa DATE: May 1, 2007 County �t COUlz SUBJECT: Approval to Submit Application and Execute Grant Award Agreement with the State Department of Insurance for Funding of Workers' Compensation Insurance Fraud Prosecution SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: Approve and authorize the District Attorney to submit an application and execute a grant award agreement and any extensions or amendments,thereof,pursuant to State guidelines,with the State Department of Insurance for funding of the Workers' Compensation 'Insurance Fraud Prosecution Program in the amount of$669,298 for the period July 1, 2007 through June 30, 2008. FISCAL IMPACT: The grant application will fund'salaries and benefits for two attorneys, an investigator, and on&ne-half time clerk assigned to the program. The Workers' Compensation Insurance Fraud Prosecution grant award is allocated from a trust fund financed by an assessment payable by the insurer. Of the assessment amount, approximately one-half is earmarked for distribution to District Attorneys for enhanced prosecution of workers' compensation insurance fraud. Supplantation is prohibited. Expenditures and revenue for grant positions are included in the District Attorney's 2007/2008 budget. REASONS FOR RECOMMENDATIONS AND BACKGROUND: The State Legislature has determined that one of the significant factors driving up the costs of workers' compensation 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. The cost of insurance has been a major factor in the high cost of doing business in the State. SB 1218 (Presley)was enacted to put teeth into the law and to provide resources for enforcement. If the grant is.approved, it will allow the District Attorney to continue to place specially trained staff in the criminal fraud division, who will be able to concentrate on the growing problem of workers' compensation fraud. CONTINUED ON ATTACHMENT: ❑x SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND 7N OF B RD CO ITTEE APPROVE OTHER SIGNATURE(S): ak� '4�7 � ACTION OF BOA H I1�:1 I , Adv APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON UNANIMOUS(ABSENT ) MINUTES OF THE BOARD OF SUPERVISORS ON THE AYES: NOES: DATE SHOWN. ABSENT: ABSTAIN: Contact :\D H ( ` :\Data\Word\board orders\Workers'Comp Grant 0708.doc ATTESTED JOHN CULLtN,CLEt OF THE BOA OF SUPERVISORS cc: BY: �'" DEPUTY SUBJECT: Approval to Submit Application and Execute Grant Award Agreement with the State Department of Insurance for Funding of Workers' Compensation Insurance Fraud Prosecution DATE: May 1, 2007 PAGE: 2 of 2 CONSEQUENCES OF NEGATIVE ACTION: Failure to approve the recommendation will result in the inability of the District Attorney to apply for State funds designated for use by Contra Costa County in the prosecution of workers' compensation insurance fraud. A County which fails to submit the application shall not be considered for funding, and their undistributed funds shall be returned to the Department of Insurance to be reprogrammed.