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. 

PURPOSE:  Revised language in the rule to comply with Senate Bill 07-258 that, in part, addresses the issue of lump sum payments.

The rule amendments addressed the following subjects:
   
Rule 5-10             Lump Sum Payments of an Award
Increased the aggregate of all lump sums awarded; provides guidance on calculation and payment of benefits; provides guidance on how to request and receive lump sums for pro se and represented claimants.

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.

   Effective date of the adopted rule will be October 1, 2007.

Bob Summers							8/16/2007
Bob Summers							Date
Director, Division of Workers’ Compensation