TITLE 28. INSURANCE

PART 2. TEXAS DEPARTMENT OF INSURANCE, DIVISION OF WORKERS' COMPENSATION

CHAPTER 55. LUMP SUM PAYMENTS

28 TAC §55.15

INTRODUCTION. The Texas Department of Insurance, Division of Workers' Compensation (DWC) adopts amendments to 28 Texas Administrative Code §55.15, concerning Compromise Settlement Agreements. DWC adopts §55.15 without changes to the proposed text published in the February 10, 2023, issue of the Texas Register (48 TexReg 639) and will not be republished.

REASONED JUSTIFICATION. Amending §55.15 is necessary to update obsolete submission method requirements and obsolete references to the Industrial Accident Board, a predecessor agency of DWC. The amendments eliminate the use of colored or carbon copy paper when submitting settlement agreements to DWC. The amendments do not change the requirements of settlement agreements, just the way they are submitted to DWC. The amendments also update the agency's name.

Labor Code §402.061 requires the commissioner of workers' compensation to adopt rules as necessary to implement and enforce the Texas Workers' Compensation Act. Section 55.15 implements requirements for the contents of compromise settlement agreements. Former §55.15(6) required that all compromise settlement agreements be submitted to DWC in four parts on carbonless paper or with carbon paper left intact. Adopted §55.15(b) no longer has the requirement to submit compromise settlement agreements on carbonless paper and now requires compromise settlement agreements to be sent to DWC in the form and manner DWC prescribes.

SUMMARY OF COMMENTS. DWC did not receive any comments on the proposed amendments.

STATUTORY AUTHORITY. The commissioner of workers' compensation adopts the amendments to §55.15 under Labor Code §§408.005, 402.00111, 402.00116, and 402.061.

Labor Code §408.005 requires in part that a settlement be signed by the commissioner and all parties to the dispute and sets out criteria for the commissioner to approve the settlement. Subsection (f) states that a settlement that is not approved or rejected before the 16th day after the date the settlement is submitted to the commissioner is considered to be approved by the commissioner on that date. So, to comply with Labor Code §408.005, settlements must be submitted to the commissioner.

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 the division 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 13, 2023.

TRD-202302152

Kara Mace

General Counsel

Texas Department of Insurance, Division of Workers' Compensation

Effective date: July 3, 2023

Proposal publication date: February 10, 2023

For further information, please call: (512) 804-4703