REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 17, 2024
FROM
JASON ANDERSON, District Attorney
SUBJECT
Title
Grant Award Agreement with the California Insurance Commissioner for the Automobile Insurance Fraud Prosecution Program
End
RECOMMENDATION(S)
Recommendation
1. Approve Grant Award Agreement with the Insurance Commissioner of the State of California to accept $812,128 to fund the investigation and prosecution of automobile insurance fraud and economic car theft cases in San Bernardino County, for the period of July 1, 2024, through June 30, 2025.
2. Authorize the Chief Deputy District Attorney to electronically sign and submit the grant award agreement and any subsequent non-substantive amendments in relation to the acceptance of the Grant Award Agreement, subject to review by County Counsel.
3. Adopt Resolution, as required by the California Department of Insurance, approving the Grant Award Agreement and authorizing the Chief Deputy District Attorney to electronically sign and submit all documents and any subsequent non-substantive amendments to the Grant Award Agreement, subject to review by County Counsel.
4. Approve appropriation and revenue adjustments of $34,259 for the funds awarded in excess of the funds included in the District Attorney’s 2024-25 budget and authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments, as detailed in the Financial Impact section (Four votes required).
5. Direct the Chief Deputy District Attorney to transmit the Grant Award Agreement and any subsequent non-substantive amendments, to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Michael Fermin, Chief Assistant District Attorney, 382-3662)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the need for additional Discretionary General Funding (Net County Cost). The $812,128 grant award from the Insurance Commissioner of the State of California will be allocated to maintain support for the following existing positions assigned to the County’s Automobile Insurance Fraud Program (Program): one Deputy District Attorney IV, two District Attorney Senior Investigator, and one Administrative Assistant I. Funds assessed annually against insurers, in the amount of $1.00 for each insured vehicle, provide the funding for this grant, and no matching funds are required.
The budget adjustment is needed due to a timing difference between the amount budgeted during the 2024-25 annual budget development and the award amount received. The District Attorney (Department) initially projected receiving the same award amount as in the grant cycle 2023-24 of $777,869. However, the award amount for the 2024-25 grant cycle is $812,128. The net increase of the grant award is $34,259.
|
Funds Center |
Commitment Item |
Description |
Action |
Amount |
|
4500002670 |
40408955 |
State - Grants |
Increase |
$34,259 |
|
4500002670 |
55405010 |
Salaries & Benefits Transfers Out |
Increase |
$34,259 |
|
4500001000 |
55415011 |
Salaries & Benefits Transfers In |
Increase |
$34,259 |
|
4500001000 |
51001010 |
Regular Salaries |
Increase |
$34,259 |
BACKGROUND INFORMATION
The California Insurance Commissioner, as authorized by Section 1872.8 of the California Insurance Code and California Code of regulations, Title 10, Section 2698.65, annually distributes grant funds to agencies statewide for the purpose of investigating and prosecuting automobile insurance fraud cases. The Department has been receiving funds for this purpose since 1991.
The Department of Insurance (DOI) relies heavily on local law enforcement agencies to investigate and prosecute insurance fraud. Because DOI has a high-level overview and responsibility of setting the rates paid by those insured, it is vested in investigating and prosecuting fraud to prevent costs from unfairly increasing. DOI refers cases directly to the Department for investigation and prosecution, in addition to cases received directly from local police departments.
On June 25, 2024 (Item No. 60), the Board of Supervisors (Board) authorized the Department to submit a grant application to the California Insurance Commissioner requesting Program funding for the period of July 1, 2024, through June 30, 2025. On September 6, 2024, the Department received notification from the California Insurance Commissioner of the county’s grant award in the amount of $812,128 for the period of July 1, 2024, through June 30, 2025.
On November 14, 2024, the Department received notification that the Grant Award Agreement would come from their online Grant Management System and would require electronic signature via DocuSign on November 15, 2024, which would be due on December 6, 2024. The date to return the electronically signed Grant Award Agreement has been extended to December 31, 2024 to ensure adequate time to obtain Board approval.
This item is being presented at this time, as it is the first available date following required operational, fiscal and legal review. Approval of the grant award by the Board at this time will have no impact on the Department’s grant related services and activities.
The State of California, Department of Insurance requires the Resolution from the Board approving the Grant Award Agreement and authorizing the Chief Deputy District Attorney to electronically sign the agreement.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Daniella Hernandez, Deputy County Counsel, 387-3121) on November 21, 2024; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on November 22, 2024; Finance, (Kathleen Gonzalez, Finance Analyst, 387-5412) on November 25, 2024; and County Finance and Administration (Robert Saldana, Deputy Executive officer, 387-5423) on December 2, 2024.