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Adopt a resolution affirming the Solano County District Attorney's prior submission of a recurring grant proposal to the California Department of Insurance for the investigation and prosecution of automobile insurance fraud; Authorize the District Attorney to accept the award in the amount of $188,287 for the period ending June 30, 2024
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The District Attorney recommends that the Board of Supervisors:
1. Adopt a resolution affirming the Solano County District Attorney's prior submission of a recurring grant proposal to the California Department of Insurance for the investigation and prosecution of automobile insurance fraud; and
2. Authorize the District Attorney, or her designee, to accept the award in the amount of $188,287 for the period ending June 30, 2024
SUMMARY/DISCUSSION:
The District Attorney’s Office has operated the Insurance Fraud Program for the past 28 years. The dedicated unit is assigned exclusively to the prosecution of automobile insurance fraud and consists of a Deputy District Attorney and an Investigator. Each year the District Attorney submits and receives grant funding from the California Department of Insurance to partially offset program costs.
On June 29, 2023, the District Attorney submitted the grant application for FY2023/24. On November 14, 2023, the District Attorney was notified by the Insurance Commissioner that the award to Solano County was $162,076. On February 6, 2024, the Insurance Commissioner approved the carryover of $13,891 in unexpended FY2022/23 funds. On March 4, 2024, the Insurance Commissioner awarded an additional $12,320 in funding, for a total award of $188,287 for the period ending June 30, 2024.
A complete copy of the grant application is attached (Attachment A). A copy of the grant application budget is attached (Attachment B). This is a recurring grant, and revenue and appropriations were included in the Department’s FY2023/24 budget as instructed in the County Financial Administration of Grants handbook. Approval of this recurring grant will allow the District Attorney's Office to continue to investigate and prosecute crimes involving automobile insurance fraud.
FINANCIAL IMPACT:
The financing for this program is derived from monies collected by insurance companies as a surcharge on automobile insurance premiums. These funds are distributed pursuant to Insurance Code Section 1872.8 by the State of California Department of Insurance.
The District Attorney’s FY2023/24 Adopted Budget included $102,860 from the California Department of Insurance grant in projected revenue and offsetting appropriations for this program and was in-line with prior year awards. On November 14, 2023, the District Attorney was notified by the Insurance Commissioner that the award to Solano County was $162,076 (Attachment C). On February 6, 2024, the Insurance Commissioner approved the carryover of $13,891 in unexpended FY2022/23 funds (Attachment D). On March 14, 2024, the Insurance Commissioner approved $12,320 in additional funding, for a total award of $188,287 for the period ending June 30, 2024 (Attachment E). The District Attorney’s FY2023/24 Working Budget includes sufficient appropriations to address the increased program expenditures, therefore no ATR is required at this time.
The costs associated with preparing the agenda item are nominal and absorbed by the District Attorney’s FY2023/24 Working Budget.
ALTERNATIVES:
The Board can choose not to adopt the resolution; however, this action is not recommended. Failure to adopt the resolution would result in the loss of approximately $188,287 in grant funds and a significant impact in the District Attorney's ability to investigate and prosecute automobile insurance fraud.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION