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:  Reviewed and adjusted the surcharge rate paid by insurance carriers and self-insured employers, factoring in the mandates of Senate Bill 09-037.  The amendments will provide sufficient funding for the Workers’ Compensation Cash Fund while decreasing the amount going into the Special Funds.  Under the rule the total surcharge will be lowered.

The rule amendments addressed the following subjects:

Rule 2-5 Surcharge Rate

(A) and (B) 	Changed year 2009 to 2010. Slightly increased the workers’ compensation cash fund premium surcharge rate.
(C)	Decreased the special funds premium surcharge rate.                                                          

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.

Rule changes will be effective July 1, 2010.

Bob Summers							03/26/2010
Bob Summers							Date
Director
Division of Workers’ Compensation