To: Sonoma County Board of Supervisors
Department or Agency Name(s): District Attorney
Staff Name and Phone Number: Renate Amantite, ASO II 565-3150
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
District Attorney 2019-2020 Automobile Insurance Fraud Program
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Recommended Action:
Recommended action
Adopt a resolution authorizing the District Attorney to execute the grant agreement with the California Department of Insurance to participate in the Automobile Insurance Fraud Program and accept $55,160 in grant funding for the term July 1, 2019 through June 30, 2020. The objective of this grant is to protect public safety resulting from criminal enterprises staging traffic collisions, and vendors providing faulty vehicle repairs and placing dangerous and unsafe vehicles back on the road.
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Executive Summary: Board approval and authorization is requested to allow the District Attorney to sign a contract to continue participation in the Automobile Insurance Fraud Program funded by the California Department of Insurance in the amount of $55,160 for the 2019-20 Fiscal Year. The District Attorney’s Office has participated in the Automobile Insurance Fraud Program in Fiscal Years 2009-10 through 2013-14. The staff assigned to this grant program are from the District Attorney Consumer Fraud unit and will consist of an existing Deputy District Attorney, an existing District Attorney Investigator, an existing Legal Secretary, and an existing Legal Processor. Also included is funding for the cost of a required internal audit. The funding should be sufficient to cover the costs involved in Sonoma’s Auto Fraud prosecution work.
Discussion:
The California Department of Insurance (CDI) is the primary law enforcement agency responsible for investigating automobile insurance fraud crimes. The District Attorney first participated in this program in Fiscal Year 2009-10. The Fraud Division coordinates enforcement operations statewide with municipal, state, and federal enforcement agencies. Completed investigations are filed with the District Attorney or the United States Attorney General’s Office. The funding for this program comes from an assessment on automobile insurers of 25 cents for each vehicle insured, as set forth in the California Code of Regulations, Title 10, Chapter 5, Sub-chapter 9 - Insurance Fraud.
Board approval and authorization is requested to allow the District Attorney to sign a contract to continue participation in the Automobile Insurance Fraud Program funded by the California Department of Insurance in the amount of $55,160 for the 2019-20 Fiscal Year. The District Attorney participated in the Automobile Insurance Fraud Program in Fiscal Years 2009-10 through 2013-14, and also in FY18-19. As a result of staffing limitations, the District Attorney’s Office did not apply for this grant between FY14-15 and FY17-18, and applied in FY18-19. At the beginning of last fiscal year, there was only one Auto Fraud case. Through the fiscal year, seven cases were referred and investigated, charges were filed in three of these cases, two cases lead to convictions and the third went to a preliminary hearing and is now set for trial.
Automobile insurance fraud is both economically costly and increases risk to citizens when travelling Sonoma County’s roads. Grant funds afford the District Attorney’s Office additional resources to focus on cases which are, by nature, more obscure and traditionally difficult to detect. Automobile Insurance fraud is committed by criminal enterprises staging traffic collisions and automobile repair vendors placing unsafe vehicles back on the roads. These are serious crimes. The District Attorney’s Office will focus efforts to detect and prosecute this type of fraud. These sophisticated automobile insurance fraud acts adversely impact all citizens in California through higher insurance rates. Examples of this sophisticated fraud also include medical-legal fraud committed by medical-legal providers in the personal injury system who include false information regarding unnecessary treatments or services which are rarely furnished in order to secure insurance payments; and applicant fraud which is committed by an insured who reports that he/she was driving, when in fact another driver was behind the wheel during an accident. In addition, the District Attorney’s Office intends to work with the Department of Insurance investigators to reduce the risk to public safety by investigating and prosecuting auto rings and auto body shops who provide faulty repairs. This new focus will help ensure that the types of cases being prosecuted in this county are truly reflective of the nature of fraud actually experienced by the county.
The District Attorney wishes to increase the prosecution of the automobile fraud insurance crimes which requires an increase in outreach and education efforts. This effort will be a multi-year pursuit and various strategies and plans are being developed including identifying and strengthening relationships with others, including local law enforcement agencies such as the Sonoma County Auto Theft Task Force. The District Attorney’s Office also knows that holding auto fraud offenders accountable, helps deter other potential auto insurance fraud offenders.
The 2019-20 grant award of $55,160 is a slight reduction (less than 1%) from the award received for 2018-19. The funds will allow the District Attorney’s Office to continue the dedicated work of this program. The staff assigned to this grant program are from the District Attorney Consumer Fraud unit and this special prosecution will be performed by an existing Deputy District Attorney with an estimated annual cost of $275,940, 5% or $13,797 paid by these grant funds; an existing District Attorney Investigator with an estimated annual cost of $214,861, 8.5% or $ $18,263 paid with these grant funds; a department analyst with an estimated annual cost of $149,771, 1.9% or $2,846 paid with grant funds; an existing Legal Secretary with an estimated annual cost of $122,548, 2% or $2,328 paid with grant funding; and an existing Legal Processor with an estimated annual cost of $98,230, 1.5% or $1,474 paid with these grant funds. Also included is $8,800 to pay for the cost of a required internal fiscal audit performed by the Sonoma County Auditor Payroll department, $2,389 in indirect costs, $200 for outreach, $5,000 for training, and $63 for travel.
Prior Board Actions:
The Board has approved Resolutions authorizing the Automobile Insurance Grant each year between 2009-10 and 2013-14 and for 2018-19.
Fiscal Summary
|
Expenditures |
FY 19-20 Adopted |
FY20-21 Projected |
FY 21-22 Projected |
|
Budgeted Expenses |
$55,160 |
$60,676 |
$66,744 |
|
Additional Appropriation Requested |
|
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|
|
Total Expenditures |
$55,160 |
$60,676 |
$66,744 |
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Funding Sources |
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|
|
|
General Fund/WA GF |
|
|
|
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State/Federal |
$55,160 |
$60,676 |
$66,744 |
|
Fees/Other |
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Use of Fund Balance |
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Contingencies |
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|
|
|
Total Sources |
$55,160 |
$60,676 |
$66,744 |
Narrative Explanation of Fiscal Impacts:
The 2018-19 State of California Department of Insurance Automobile Insurance Fraud Investigation grant award of $55,160 is a 1% decrease over the award received in the 2018-19 Fiscal Year. The current grant will fund activities through June 30, 2020 and the staff will cost code their time when working on Auto Fraud related task work so that their associated costs will be paid for with these grant funds. There is no impact to the Sonoma County general fund. The District Attorney’s Office will apply for annual grant renewals in future fiscal years.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
There is no staffing impact. This is the normal work of the Consumer Fraud unit.
Attachments:
Resolution Authorizing Execution of Grant Agreement
Grant Award Agreement
Related Items “On File” with the Clerk of the Board:
N/A