To: Board of Supervisors
From: Diana Becton, District Attorney
Report Title: 2024/25 Workers' Compensation Insurance Fraud Prosecution Program 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 $1,387,084 from the Workers' Compensation 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 investigation and prosecution of workers' compensation fraud cases for the period of July 1, 2024 through June 30, 2025.
FISCAL IMPACT:
Approximately $1,387,084. 100% State funded, no County match required. The grant will fund salaries and benefits for Deputy District Attorneys, Senior Inspectors, Legal Assistant, Forensic Accountant, and other staff assigned to the program. Supplantation is prohibited. This revenue is budgeted in fiscal year 2024-25. 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 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 is a factor in the high cost of doing business in the State. SB 1218 (Presley) was enacted to provide resources for enforcement of current laws. If the grant is approved, the District Attorney will continue to place staff in the criminal fraud division, who will be able to concentrate on the problem of workers' compensation fraud.
CONSEQUENCE OF NEGATIVE ACTION:
If unapproved, the District Attorney 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
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IN THE MATTER OF the Office of the District Attorney Workers' Compensation Insurance Fraud Grant Fiscal Year 2024-2025.
WHEREAS, the Contra Costa County Board of Supervisors, desires to undertake a certain program designated as the Workers' Compensation Insurance Fraud Prosecution Program to be funded in part from funds made available through the authority of Workers' Compensation California Insurance Code section 1872.83, California Code of Regulations 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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