To: Board of Supervisors
From: Diana Becton, District Attorney
Report Title: 2024-2027 Organized Automobile Fraud Activity Interdiction Program Grant Application
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Resolution No. XXXX/XXX authorizing the District Attorney, or designee, to apply for and accept grant funding in the amount of $1,883,543 from the Organized Automobile Fraud Activity Interdiction 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, 2027.
FISCAL IMPACT:
The funding will be 100% state funds with no match required. The total grant amount of $1,883,543 will fund salaries and benefits for 0.7 FTE Deputy District Attorney, 1.0 FTE Senior Inspector and 0.5 FTE Legal Assistant. Supplantation is prohibited. Budgeted funding is approximately $597,476 for FY 2024/2025, $627,350 for FY 2025/2026 and $658,717 for FY 2026/2027.
BACKGROUND:
The State Legislature has determined that one of the significant factors driving up the cost of automobile insurance is fraud. The Organized Automobile Fraud Activity Interdiction Program award is allocated from funds received per Insurance Code 1874.8, whereby each insurer doing business in California pays an annual fee of $0.50 for each vehicle insured under an insurance policy it issues in this state. A portion of the assessment amount is earmarked for distribution to District Attorneys for enhanced investigation and prosecution of organized automobile insurance fraud.
CONSEQUENCE OF NEGATIVE ACTION:
The District Attorney's Office will not be able 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
IN THE MATTER OF Funding for the District Attorney Organized Automobile Fraud Activity Interdiction Program Grant Fiscal Years 2024-2027.
WHEREAS, the Board of Supervisors, Contra Costa County, desires to undertake a certain project designated as the Organized Automobile Fraud Activity Interdiction Program to be funded in part from funds made available under the authority of California Insurance Code Section 1874.8, 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. BE IT FURTHER RESOLVED that the grant funds received hereunder shall not be used to supplant expenditures controlled by this body.