To: Board of Supervisors
From: Diana Becton, District Attorney
Report Title: 2024/25 Automobile Insurance Fraud Prosecution Grant Application
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution No. 2024/XXX authorizing the District Attorney, or designee, to apply for and accept funding in an amount not to exceed $432,717 from the Automobile Insurance Fraud Prosecution Program, and to execute a grant award agreement, and any extensions or amendments thereof, pursuant to State guidelines, with the California Department of Insurance for the period July 1, 2024 through June 30, 2025.
FISCAL IMPACT:
Approximately $432,717. 100% State funded, no County match. The grant will fund salaries and benefits for a Deputy District Attorney, a Senior Inspector, and other staff assigned to the program. Supplantation is prohibited. This revenue has been budgeted. Approximate grant amount is based on current fiscal year 2023-24 award. Actual grant amount for fiscal year 2024-25 is determined after application submission.
BACKGROUND:
The State Legislature has determined that one of the significant factors driving up the cost of automobile 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 Automobile Insurance Fraud Prosecution award is allocated from a trust fund financed by an assessment per insured vehicle, payable by the insurer. A portion of the assessment amount is earmarked for distribution to County District Attorney Offices for enhanced prosecution of automobile fraud.
CONSEQUENCE OF NEGATIVE ACTION:
If unapproved, the District Attorney's Office will be unable to apply for and accept the grant.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF the Office of the District Attorney Automobile Insurance Fraud Grant Fiscal Year 2024-2025.
WHEREAS, the Contra Costa County Board of Supervisors desires to undertake a certain program designated the Automobile Insurance Fraud Program to be funded in part from funds made available through Automobile - California Insurance Code Section 1872.8, California Code of Regulations, Title 10, Section 2698.60 et seq. and administered by the California Department of Insurance.
NOW, THEREFORE, BE IT RESOLVED that the District Attorney of the County of Contra Costa, or designee, is authorized, on its behalf, to submit the attached proposal to the California Department of Insurance and is authorized to execute on behalf of the Board of Supervisors the attached Grant Award Agreement including any extensions or amendments thereof.
IT IS AGREED that any liability arising out of the performance of the 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 responsibility for any such liability.
NOW, THEREFORE, BE IT RESOLVED that the grant funds received hereunder shall not be used to supplant expenditures controlled by this body.
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