PART 2. TEXAS DEPARTMENT OF INSURANCE, DIVISION OF WORKERS' COMPENSATION
CHAPTER 102. PRACTICES AND PROCEDURES--GENERAL PROVISIONS
INTRODUCTION. The Texas Department of Insurance, Division of Workers' Compensation (DWC) adopts amendments to 28 TAC §102.2, concerning gifts, grants, and donations. The amendments are adopted without changes to the proposed text published in the May 17, 2024, issue of the Texas Register (49 TexReg 3483). The rule will not be republished.
REASONED JUSTIFICATION. The amendments update the language in §102.2 and remove obsolete provisions. Amending §102.2 is necessary to reflect the current agency structure to ensure that the rule is clear and accurate. Texas Labor Code §402.062 permits DWC to accept gifts, grants, or donations as provided by DWC rules. The amendments also explain DWC's process for providing notice of gifts, grants, and donations, and include nonsubstantive editorial and formatting changes that make updates for plain language and agency style to improve the rule's clarity.
SUMMARY OF COMMENTS AND AGENCY RESPONSE.
Commenters: DWC received one written comment and no oral comments. The Office of Injured Employee Counsel (OIEC) commented in support of the proposal. Nobody commented against the proposal or suggested changes to it.
Comment on §102.2. OIEC supported DWC's amendments regarding posting gifts, grants, or donations of $500 or more on its website for five years.
Agency Response to Comment on §102.2. DWC appreciates the comment.
STATUTORY AUTHORITY. The commissioner of workers' compensation adopts the amendments to §102.2 under Labor Code §§402.062, 402.00111, 402.00116, and 402.061.
Labor Code §402.062 permits DWC to accept gifts, grants, or donations as provided by DWC rules.
Labor Code §402.00111 provides that the commissioner of workers' compensation shall exercise all executive authority, including rulemaking authority under Title 5 of the Labor Code.
Labor Code §402.00116 provides that the commissioner of workers' compensation shall administer and enforce this title, other workers' compensation laws of this state, and other laws granting jurisdiction to or applicable to DWC or the commissioner.
Labor Code §402.061 provides that the commissioner of workers' compensation shall adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 21, 2024.
TRD-202402741
Kara Mace
General Counsel
Texas Department of Insurance, Division of Workers’ Compensation
Effective date: July 11, 2024
Proposal publication date: May 17, 2024
For further information, please call: (512) 804-4703
INTRODUCTION. The Texas Department of Insurance, Division of Workers' Compensation (DWC) adopts new 28 TAC §147.1; amended §§147.4, 147.5, 147.7, 147.10, and 147.11; and the repeals of §§147.1 - 147.3, 147.6, 147.8, and 147.9, concerning agreements, settlements, and commutations in the dispute resolution process.
New §147.1; amended §§147.4, 147.5, 147.7, 147.10, and 147.11; and the repeals of §§147.1 - 147.3, 147.6, 147.8, and 147.9 are adopted without changes to the proposed text published in the April 5, 2024, issue of the Texas Register (49 TexReg 2165) and will not be republished.
REASONED JUSTIFICATION. The amendments and repeals condense some sections into others, so the chapter is more organized and easier to navigate; remove some sections and subsections that are outdated and unnecessary; update citations; remove obsolete references; and make plain language updates and agency style editorial changes. The amendments and repeals also remove references to penalties specific to certain violations of agreements and settlements since penalties are addressed in Texas Labor Code Chapter 415 and 28 TAC Chapter 180.
The amended sections, new section, and repeals are necessary to organize the chapter and remove unnecessary rules to update and streamline the dispute resolution process. Some sections were deleted because they repeat the Labor Code or existing rules, or require DWC to perform actions that are unnecessary and not required by statute.
Section 147.1 provides a statutory reference to definitions in the dispute resolution process. The repeal of §147.1 removes the reference to the definitions within the section, which are "agreement" and "settlement" because these definitions exist in Labor Code §401.011. Sections 147.2 and 147.3 move into new §147.1, which replaces the repealed text, to better organize the chapter. Also, §147.1 is renamed to better reflect its purpose.
Section 147.2 provides that agreements and settlements must be on a form prescribed by DWC and specifies which forms to use. DWC has repealed §147.2 and moved former §147.2(a), which requires that an agreement or settlement of the dispute resolution process be on a form prescribed by DWC, to §147.1 to better organize the chapter. Subsections 147.2(b) and 147.2(c), which specify certain DWC forms to use, have been repealed because our website contains these forms, and the website is easy to navigate.
Section 147.3 concerned the execution of agreements and settlements in the dispute resolution process. The existing subsections under §147.3 moved to new §147.1 to better organize the rule, and §147.3 has been repealed.
Section 147.4 concerns filing agreements and effective dates in the dispute resolution process. The amendments remove certain procedures for DWC staff that are not required by statute and do not contribute to the purpose of filing agreements. The amendments also remove §147.4(e), which refers to possible penalties imposed if a breach of an agreement occurs, because Labor Code Chapter 415 and 28 TAC Chapter 180 address these penalties. The amendments also rename §147.4 to better reflect its purpose.
Section 147.5 concerns settlements in the dispute resolution process, including settlement requirements, effective dates, and procedures for informal settlement conferences. The amendments remove subsections 147.5(b), (c), (d), (e), and (g). Those provisions are more appropriate for internal procedures than a rule. Removing them updates and streamlines the settlement process. Subsection 147.5(h) is removed because it exists in Labor Code §408.005(f). Subsection 147.9(c) regarding settlements moved to new subsection 147.5(c). The amendments also rename §147.5 to better reflect its purpose.
Section 147.6 provided that DWC may reject a settlement by an unrepresented employee pending an informal conference. DWC has repealed §147.6 because it is obsolete. Settlements under old law are now covered under Chapter 56 of this title (relating to Structured Compromised Settlement Agreements).
Section 147.7 concerns the effect of previously entered decisions and orders on agreements and settlements in the dispute resolution process. The amendments rename §147.7 to better reflect its purpose.
Section 147.8 provided the circumstances under which a party can withdraw from a settlement. Section 147.8 has been repealed because it repeats Labor Code subsection 408.005(h).
Section 147.9 concerned the requirements for agreements and settlements in the dispute resolution process. Repealing §147.9 removed subsections (a) and (b) because they repeat the statute. Subsection 147.9(c), regarding settlements, has been moved to subsection 147.5(c) to better organize the rule.
Section 147.10 concerns the commutation of impairment income benefits. The amendments to §147.10 remove subsection (a) because it exists in Labor Code §408.128. Subsection (c) is removed because the DWC form already provides a warning to the employee that commutation terminates the employee's entitlement to additional income benefits, and it exists in Labor Code §408.128. Subsection (d) is removed because it is unnecessary. Subsection (d) states that the employee may contact DWC to get or verify the information required to be included in a request to commute impairment benefits. Employees may contact DWC to get or verify this information without a rule stating so. Therefore, it is unnecessary. The amendments also rename the section to better reflect its purpose.
Section 147.11 concerns notifications to DWC of proposed judgments and settlements within the dispute resolution process. The amendments to §147.11 update the language in subsection (b) and remove subsections (a) and (c) because they exist in Labor Code §410.258. The amendments also remove subsection (d) regarding penalties because Labor Code Chapter 415 and 28 TAC Chapter 180 address these penalties.
In addition, the adopted amendments to Chapter 147 include nonsubstantive editorial and formatting changes to conform the sections to the agency's current style and improve the rule's clarity.
SUMMARY OF COMMENTS AND AGENCY RESPONSE.
Commenters: DWC received two written comments, and no oral comments. Commenters in support of the proposal were: Office of Injured Employee Counsel (OIEC) and Liberty Mutual. DWC did not receive comments against the proposal.
Comment on Chapter 147. OIEC commented that they support the proposed amendments.
Agency Response to Comment on Chapter 147. DWC appreciates the comment.
Comment on Chapter 147. Liberty Mutual commented that the changes to the rule are good, making the chapter clearer and should help all parties better understand the process.
Agency Response to Comment on Chapter 147. DWC appreciates the comment.
28 TAC §§147.1 - 147.3, 147.6, 147.8, 147.9
STATUTORY AUTHORITY. The commissioner of workers' compensation adopts the repeals of 28 TAC §§147.1 - 147.3, 147.6, 147.8, and 147.9 under Labor Code §§401.011, 408.005, 410.029, 410.030, 410.258, 402.00111, 402.00116, and 402.061.
Labor Code §401.011 provides definitions used in workers' compensation.
Labor Code §408.005 concerns the timing, approval, and withdrawal of a settlement in the dispute resolution process.
Labor Code §410.029 provides that a dispute may be resolved either in whole or in part at a benefit review conference. If the conference results in the resolution of some disputed issues by agreement or in a settlement, the benefit review officer must reduce the agreement or the settlement to writing. The benefit review officer and each party or the designated representative of the party must sign the agreement or settlement. Section 410.029 also provides that a settlement takes effect on the date it is approved by DWC in accordance with Labor Code §408.005.
Labor Code §410.030 provides that an agreement signed in accordance with Labor Code §410.029 is binding on the insurance carrier through the conclusion of all matters relating to the claim, unless DWC or a court, on a finding of fraud, newly discovered evidence, or other good and sufficient cause, relieves the insurance carrier of the effect of the agreement. The agreement is binding on the claimant, if represented by an attorney, to the same extent as on the insurance carrier.
Labor Code §410.258 provides that a party must file any proposed judgment or settlement, including a proposed default judgment or proposed agreed judgment, with the division not later than the 30th day before the date on which the court is scheduled to enter the judgment or approve the settlement.
Labor Code §402.00111 provides that the commissioner of workers' compensation shall exercise all executive authority, including rulemaking authority under Title 5 of the Labor Code.
Labor Code §402.00116 provides that the commissioner of workers' compensation shall administer and enforce this title, other workers' compensation laws of this state, and other laws granting jurisdiction to or applicable to DWC or the commissioner.
Labor Code §402.061 provides that the commissioner of workers' compensation shall adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 18, 2024.
TRD-202402677
Kara Mace
General Counsel
Texas Department of Insurance, Division of Workers' Compensation
Effective date: July 8, 2024
Proposal publication date: April 5, 2024
For further information, please call: (512) 804-4703
STATUTORY AUTHORITY. The commissioner of workers' compensation adopts new 28 TAC §147.1 and amendments to §§147.4, 147.5, 147.7, 147.10, and 147.11 under Labor Code §§408.005, 408.128, 410.029, 410.030, 410.258, 402.00111, 402.00116, and 402.061.
Labor Code §408.005 concerns the timing, approval, and withdrawal of a settlement in the dispute resolution process.
Labor Code §408.128 provides that an employee may elect to commute the remainder of the impairment income benefits to which the employee is entitled if the employee has returned to work for at least three months, earning at least 80% of the employee's average weekly wage. An employee who elects to commute impairment income benefits is not entitled to additional income benefits for the compensable injury.
Labor Code §410.029 provides that a dispute may be resolved either in whole or in part at a benefit review conference. If the conference results in the resolution of some disputed issues by agreement or in a settlement, the benefit review officer must reduce the agreement or the settlement to writing. The benefit review officer and each party or the designated representative of the party must sign the agreement or settlement. Section 410.029 also provides that a settlement takes effect on the date it is approved by DWC in accordance with Labor Code §408.005.
Labor Code §410.030 provides that an agreement signed in accordance with Labor Code §410.029 is binding on the insurance carrier through the conclusion of all matters relating to the claim, unless DWC or a court, on a finding of fraud, newly discovered evidence, or other good and sufficient cause, relieves the insurance carrier of the effect of the agreement. The agreement is binding on the claimant, if represented by an attorney, to the same extent as on the insurance carrier.
Labor Code §410.258 provides that a party must file any proposed judgment or settlement, including a proposed default judgment or proposed agreed judgment, with the division not later than the 30th day before the date on which the court is scheduled to enter the judgment or approve the settlement.
Labor Code §402.00111 provides that the commissioner of workers' compensation shall exercise all executive authority, including rulemaking authority under Title 5 of the Labor Code.
Labor Code §402.00116 provides that the commissioner of workers' compensation shall administer and enforce this title, other workers' compensation laws of this state, and other laws granting jurisdiction to or applicable to DWC or the commissioner.
Labor Code §402.061 provides that the commissioner of workers' compensation shall adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 18, 2024.
TRD-202402678
Kara Mace
General Counsel
Texas Department of Insurance, Division of Workers' Compensation
Effective date: July 8, 2024
Proposal publication date: April 5, 2024
For further information, please call: (512) 804-4703