STATEMENT OF BASIS AND PURPOSE FOR
AMENDMENTS TO THE WORKERS’ COMPENSATION RULES OF PROCEDURE
7 CCR 1101-3

BASIS:  §8-47-107, C.R.S. provides the Director of the Division of Workers’ Compensation with authority to adopt and amend proper rules and regulations to govern the proceedings and hearings of the Division.  In addition, §8-44-112 and §8-46-102 provide the Director authority to annually review and adjust surcharge rates based upon appropriations made for the direct and indirect costs of the administration of the workers’ compensation system. 

PURPOSE:  Review the surcharge rate paid by insurance carriers and self-insured employers, factoring in the mandates of Senate Bill 09-037.  The adopted rule raises the rate.

The rule amendments addressed the following subjects:

Rule 4 Audits

Update fine structure for claims audits and introduce procedure for auditing policy reporting. 

Pursuant to §24-4-103(4)(b), C.R.S., the Director finds that: 1) there is a demonstrated need for the rule amendments; 2) the proper statutory authority exists for this regulation; 3) to the extent practicable, the rules are clearly stated so that their meaning will be understood by any party required to comply with the regulation; 4) the rules do not conflict with other provisions of law; and 5) the duplicating or overlapping of the regulation is explained by the agency proposing the rules.

Paul Tauriello       						March 8, 2021
Director							Date