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 Workers’ Compensation Insurance Fraud Program
End
RECOMMENDATION(S)
Recommendation
1. Approve Grant Award Agreement with the Insurance Commissioner of the State of California to accept $3,079,263, to fund the investigation and prosecution of workers’ compensation insurance fraud 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 to 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 $184,837 for 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 $3,079,263 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 Workers’ Compensation Insurance Fraud Program (Program): three Deputy District Attorney IV, six District Attorney Senior Investigators, one Administrative Assistant, as well as funding 85% of one District Attorney Supervising Investigator, and public outreach. Funding for this grant comes from funds assessed annually against insurers (the actual amount is determined annually by the State’s Fraud Assessment Commission) and no matching funds are required.
The budget adjustment is needed due to a difference between the amount budgeted during the 2024-25 annual budget development and the receipt of the award. The District Attorney (Department) initially projected receiving the same award amount as in the grant cycle 2023-24 of $2,894,426. However, the award amount for the 2024-25 grant cycle is $3,079,263. The net increase of the grant award is $184,837.
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
|
4500002672 |
40408955 |
State - Grants |
Increase |
$184,837 |
|
4500002672 |
55405010 |
Salaries & Benefits Transfers Out |
Increase |
$184,837 |
|
4500001000 |
55415011 |
Salaries & Benefits Transfers In |
Increase |
$184,837 |
|
4500001000 |
51001010 |
Regular Salaries |
Increase |
$184,837 |
BACKGROUND INFORMATION
The California Insurance Code Section 1872.83 authorizes the Insurance Commissioner of the State of California to annually distribute grant funds to agencies statewide for assistance with investigating and prosecuting workers’ compensation insurance fraud cases. Workers’ compensation insurance fraud occurs in simple to complex schemes that often require difficult and lengthy investigations. Since approval from the Board of Supervisors (Board) on June 14, 1994 (Item No. 25), the Department has been receiving grant funds for this purpose on an annual basis.
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 that are received directly from local police departments.
The Department strives to reduce fraudulent schemes throughout the Southern California Region by coordinating efforts with District Attorneys’ Offices in Riverside, Orange, Los Angeles, San Diego, and Ventura Counties as part of the “Southern California Workers’ Compensation Consortium.” The consortium creates a strong regional network of prosecuting agencies to discuss local fraud trends and other criminal activities, to assist each other when needed, and to train other law enforcement agencies and the insurance industry.
On April 9, 2024 (Item No. 27), the Board approved the Department’s grant application to the California Insurance Commissioner requesting funding for the period of July 1, 2024, through June 30, 2025. On July 9, 2024, the Department received notification from the California Insurance Commissioner of the County’s grant award in the amount of $3,079,263 for the period of July 1, 2024, through June 30, 2025. However, the Department did not receive the Grant Award Agreement until November 15, 2024.
The Grant Award Agreement was issued from DOI’s online Grant Management System and requires electronic signature via DocuSign and is 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 DOI 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 22, 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 24, 2024; and County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on December 3, 2024.