REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
JASON ANDERSON, District Attorney
SUBJECT
Title
Grant Award Agreement with the Insurance Commissioner of the State of California 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 $3,284,589, to fund the investigation and prosecution of workers’ compensation insurance fraud cases in San Bernardino County, for the period of July 1, 2026 through June 30, 2027.
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. 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 use of additional Discretionary General Funding (Net County Cost). The Insurance Commissioner of the State of California (Insurance Commissioner) awards grant funding that is composed of fees assessed annually to insurers for the purpose of fighting workers’ compensation insurance fraud. The award amounts are determined by the State’s Fraud Assessment Commission. No matching funds are required.
The Insurance Commissioner has awarded the San Bernardino County District Attorney (Department) $3,284,589 to fully fund salary and benefit costs 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, 75% of one Paralegal, and 85% of one District Attorney Supervising Investigator. The grant award of $3,284,589 also provides $363,954 for operating expenses that include public outreach, staff training, and indirect costs.
During development of the 2026-27 Recommended Budget, the Department estimated receiving the same award amount as in 2025-26 in the amount of $3,286,077. Because the 2026-27 grant award is only $1,488 less than budgeted, the Department is not requesting a budget adjustment at this time. The California Department of Insurance (DOI) advised the Department in July 2026 that additional funding will be awarded in fall or winter 2026. When DOI awards the additional funding, the Department will return to the Board to accept the funds and request a budget adjustment at that time.
BACKGROUND INFORMATION
The California Insurance Code section 1872.83 authorizes the Insurance Commissioner to annually distribute grant funds to agencies statewide for assistance with investigating and prosecuting workers’ compensation insurance fraud cases. Fraudulent workers’ compensation claims are crimes that can inflate premiums for all consumers. Workers’ compensation insurance fraud occurs in simple to complex schemes that often require difficult and lengthy investigations. Since the Board of Supervisors’ (Board) approval on June 14,1994 (Item No. 25), the Department has received annual grant funds for this purpose.
The California 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 review local fraud trends and other criminal activities, assist each other when needed, and train other law enforcement agencies and the insurance industry.
On May 5, 2026 (Item No. 35), the Board approved the Department’s grant application to the Insurance Commissioner requesting funding in the amount of $3,800,409 for the period of July 1, 2026, through June 30, 2027. The Department has the same staffing level for the last 10 years with the addition of a paralegal position in 2025-26 to assist the attorneys with prosecuting these cases. The paralegal also provides a minimal amount of assistance with cases for the two other grants that the Department receives from DOI.
On July 13, 2026, the Department received notification from the Insurance Commissioner of the County’s grant award in the amount of $3,284,589 with a projected additional award, subject to approval, of $188,726 for the period of July 1, 2026 through June 30, 2027. However, the Department did not receive the Grant Award Agreement until August 11, 2026. The Department is presenting the item on the first available Board date after required legal, fiscal, and operational reviews.
The Grant Award Agreement was issued from DOI’s online Grant Management System. It requires electronic signature via DocuSign and is due on September 11, 2026. DOI extended the date to September 25, 2026 to ensure adequate time to obtain Board approval. The Board’s approval of the Grant Award Agreement’s retroactive effective date of July 1, 2026 will not negatively impact 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 September 1, 2026; and County Finance and Administration (Elias Duenas, Administrative Analyst, 387-4052) on September 2, 2026.