DATE: October 23, 2018
TO: Board of Supervisors
SUBMITTED BY: Lisa A. Smittcamp, District Attorney-Public Administrator
SUBJECT: Retroactive Workers’ Compensation Insurance Fraud Program Grant Application and Agreement
RECOMMENDED ACTION(S):
TITLE
1. Retroactively authorize the District Attorney’s previous submittal of a grant application to the State of California, Department of Insurance (CDI) for continuation of the Workers’ Compensation Insurance Fraud program for the period July 1, 2018 through June 30, 2019 ($1,459,063); and
2. Adopt a Resolution authorizing the District Attorney to execute retroactive Grant Award Agreement for continued funding of the Workers’ Compensation Insurance Fraud program with the CDI for the period July 1, 2018 through June 30, 2019 ($1,184,988).
REPORT
There is no increase in Net County Cost associated with these actions, which will allow for the continuation of this program through June 30, 2019. To meet the grant filing deadline, the application was submitted to CDI contingent on your Board’s approval. It should be noted that the CDI requires the District Attorney-Public Administrator (DA-PA) to be the designated official authorized to sign the Grant Award Agreement. This item is countywide.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved, this program will not be funded for FY 2018-19. The loss of this grant will result in the elimination of all the current positions as follows: one Senior Deputy District Attorney, one Deputy District Attorney, three Senior District Attorney Investigators, and one Program Technician.
RETROACTIVE AGREEMENT:
The request to approve and accept the CDI grant award is retroactive because the DA-PA did not receive the grant award agreement until September 17, 2018 precluding placement of this item on an earlier Board date.
FISCAL IMPACT:
There is no increase in Net County Cost associated with these actions. There is no match requirement for the receipt of funds. The Department submitted an application in the amount of $1,459,063 to the CDI. The CDI awarded $1,184,988 to Fresno County for the Workers’ Compensation Insurance Fraud program for FY 2018-19 and when combined with Net County Cost of $110,118 provides $1,295,106 for FY 2018-19. This amount is included in the FY 2018-19 Adopted Budget for the District Attorney - Grants Org 2862.
DISCUSSION:
Senate Bill 1218 and Assembly Bill 1673 enacted in January of 1992 provided for a program to fund investigation and prosecution of Workers’ Compensation Insurance Fraud. This legislation provided assessments in Workers’ Compensation insurance premiums to fund enhanced prosecution and incarceration of individuals involved in Workers’ Compensation insurance fraud by District Attorneys in California, as defined in Insurance Code Section 1877 et seq. The CDI has approved Fresno County to receive funds pursuant to the program implemented by that legislation.
This program is currently staffed with one Senior Deputy District Attorney, one Deputy District Attorney, three Senior District Attorney Investigators, and one Program Technician to investigate and prosecute Workers’ Compensation fraud in Fresno County.
If grant funding for this program is discontinued, all associated positions will be deleted.
REFERENCE MATERIAL:
BAI #26, October 17, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Grant Application / Agreement with CDI
On file with Clerk - Resolution
CAO ANALYST:
Jeannie Z. Figueroa