A proposal by Gov. Schwarzenegger to downgrade various crimes from felony to misdemeanor status is drawing heavy scrutiny. The proposal would reclassify 73 property and drug crimes, including the brunt of insurance-related offenses in California.

One goal is to lessen the likelihood of prosecutions leading to long sentences that would add to the state prison population, in turn reducing operational expenses. But critics charge that the associated "costs" would be too high, as downgrading offenses would cripple fraud-fighting efforts and be detrimental to public safety.

Four national anti-fraud groups were not at all reticent to voice their dismay and urged Schwarzenegger to reevaluate the state's options.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.