PROPOSED STATEMENT OF BASIS AND PURPOSE FOR
AMENDMENT 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.  The Director also is given authority and directed to adopt rules concerning specific matters that fall within the Workers’ Compensation Act.  For instance, SB10-187 amended §8-43-406(1) by removing a condition the Director or Administrative Law Judge may apply before approving a lump sum payment of awarded compensation. Existing rule suggests that lump sum payment approval is predicated on the condition being met. This rule must now be amended to conform to the new statute. 

PURPOSE:  This rule amendment will clarify provisions of Rule 5-10 so that they conform to recent statutory changes. 

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

This rule will be effective September 1, 2010.

	
Paul Tauriello						May 25, 2010
Acting Director					Date
Division of Workers’ Compensation