Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 12957 

related investigative and corrective actions 

are done before further flight. 

(i) Exception to Service Information 

Specifications 

Where Boeing Service Bulletin 777– 

54A0031, Revision 1, dated May 9, 2014, 

specifies a compliance time ‘‘After the 

Original Issue Date of this Service Bulletin,’’ 

this AD requires compliance within the 

specified compliance time after the effective 

date of this AD. 

(j) Credit for Previous Actions 

This paragraph provides credit for the 

actions specified in paragraphs (g)(1), (g)(2), 

(g)(3) and (h)(2) of this AD, if those actions 

were performed before the effective date of 

this AD using Boeing Alert Service Bulletin 

777–54A0031, dated June 7, 2013. 

(k) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in 

paragraph (l)(1) of this AD. Information may 

be emailed to: 9-ANM-Seattle-ACO-AMOCRequests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/

certificate holding district office. 

(3) An AMOC that provides an acceptable 

level of safety may be used for any repair 

required by this AD if it is approved by the 

Boeing Commercial Airplanes Organization 

Designation Authorization (ODA) that has 

been authorized by the Manager, Seattle 

ACO, to make those findings. For a repair 

method to be approved, the repair must meet 

the certification basis of the airplane, and the 

approval must specifically refer to this AD. 

(l) Related Information 

(1) For more information about this AD, 

contact Kevin Nguyen, Aerospace Engineer, 

Propulsion Branch, ANM–140S, FAA, Seattle 

Aircraft Certification Office (ACO), 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

phone: 425–917–6501; fax: 425–917–6590; 

email: kevin.nguyen@faa.gov. 

(2) For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P.O. Box 3707, MC 2H–65, 

Seattle, WA 98124–2207; telephone 206– 

544–5000, extension 1; fax 206–766–5680; 

Internet https://www.myboeingfleet.com. You 

may view this referenced service information 

at the FAA, Transport Airplane Directorate, 

1601 Lind Avenue SW., Renton, WA. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

Issued in Renton, Washington, on February 

19, 2015. 

Jeffrey E. Duven, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2015–05032 Filed 3–11–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF LABOR 

Office of Workers’ Compensation 

Programs 

20 CFR Parts 702 and 703 

RIN 1240–AA09 

Longshore and Harbor Workers’ 

Compensation Act: Transmission of 

Documents and Information 

AGENCY: Office of Workers’ 

Compensation Programs, Labor. 

ACTION: Notice of proposed rulemaking; 

request for comments. 

SUMMARY: Parties to claims arising under 

the Longshore and Harbor Workers’ 

Compensation Act and its extensions 

(LHWCA or Act) and entities required to 

have insurance pursuant to the Act 

frequently correspond with the Office of 

Workers’ Compensation Programs 

(OWCP) and each other. The current 

regulations require that some of these 

communications be made in paper form 

via a specific delivery mechanism such 

as certified mail, U.S. mail or hand 

delivery. As technologies improve, other 

means of communication—including 

electronic methods—may be more 

efficient and cost-effective. Accordingly, 

this proposed rule would broaden the 

acceptable methods by which claimants, 

employers, and insurers can 

communicate with OWCP and each 

other. 

DATES: Comments on this proposed rule 

must be received by midnight Eastern 

Standard Time on May 11, 2015. 

ADDRESSES: You may submit written 

comments, identified by RIN number 

1240–AA09, by any of the following 

methods. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions on the Web site for 

submitting comments. To facilitate 

receipt and processing of comments, 

OWCP encourages interested parties to 

submit their comments electronically. 

• Fax: (202) 693–1380 (this is not a 

toll-free number). Only comments of ten 

or fewer pages, including a Fax cover 

sheet and attachments, if any, will be 

accepted by Fax. 

• Regular Mail: Division of Longshore 

and Harbor Workers’ Compensation, 

Office of Workers’ Compensation 

Programs, U.S. Department of Labor, 

Suite C–4319, 200 Constitution Avenue 

NW., Washington, DC 20210. The 

Department’s receipt of U.S. mail may 

be significantly delayed due to security 

procedures. You must take this into 

consideration when preparing to meet 

the deadline for submitting comments. 

• Hand Delivery/Courier: Division of 

Longshore and Harbor Workers’ 

Compensation, Office of Workers’ 

Compensation Programs, U.S. 

Department of Labor, Suite C–4319, 200 

Constitution Avenue NW., Washington, 

DC 20210. 

Instructions: All submissions received 

must include the agency name and the 

Regulatory Information Number (RIN) 

for this rulemaking. All comments 

received will be posted without change 

to http://www.regulations.gov, including 

any personal information provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Antonio Rios, Director, Division of 

Longshore and Harbor Workers’ 

Compensation, Office of Workers’ 

Compensation Programs, U.S. 

Department of Labor, Suite C–4319, 200 

Constitution Avenue NW., Washington, 

DC 20210. Telephone: (202) 693–0038 

(this is not a toll-free number). TTY/

TDD callers may dial toll-free 1–877– 

889–5627 for further information. 

SUPPLEMENTARY INFORMATION: 

I. Proposed Rule Published 

Concurrently With Companion Direct 

Final Rule 

In the Final Rules section of this 

Federal Register edition, OWCP is 

simultaneously publishing an identical 

rule as a ‘‘direct final’’ rule. In direct 

final rulemaking, an agency publishes a 

direct final rule in the Federal Register 

with a statement that the rule will go 

into effect unless the agency receives 

significant adverse comment within a 

specified period. The agency 

concurrently publishes an identical 

proposed rule. If the agency receives no 

significant adverse comment in 

response to the direct final rule, the rule 

goes into effect. If the agency receives 

significant adverse comment, the agency 

withdraws the direct final rule and 

treats such comment as submissions on 

the proposed rule. An agency typically 

uses direct final rulemaking when it 

anticipates the rule will be noncontroversial. 

OWCP has determined that this rule, 

which modifies the existing regulations 

to facilitate the exchange of documents 


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12958 Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 

and information, is suitable for direct 

final rulemaking. The rule expands the 

methods by which employers, 

claimants, insurers, and OWCP can 

transmit documents and information to 

each other; the rule does not eliminate 

current methods. Thus, OWCP does not 

expect to receive significant adverse 

comment on this rule. 

By simultaneously publishing this 

proposed rule, notice-and-comment 

rulemaking will be expedited if OWCP 

receives significant adverse comment 

and withdraws the direct final rule. The 

proposed and direct final rules are 

substantively identical, and their 

respective comment periods run 

concurrently. OWCP will treat comment 

received on the proposed rule as 

comment regarding the companion 

direct final rule and vice versa. Thus, if 

OWCP receives significant adverse 

comment on either this proposed rule or 

the companion direct final rule, OWCP 

will publish a Federal Register notice 

withdrawing the direct final rule and 

will proceed with this proposed rule. 

For purposes of the direct final rule, 

a significant adverse comment is one 

that explains: (1) Why the rule is 

inappropriate, including challenges to 

the rule’s underlying premise or 

approach; or (2) why the direct final 

rule will be ineffective or unacceptable 

without a change. In determining 

whether a significant adverse comment 

necessitates withdrawal of the direct 

final rule, OWCP will consider whether 

the comment raises an issue serious 

enough to warrant a substantive 

response had it been submitted in a 

standard notice-and-comment process. 

A comment recommending an addition 

to the rule will not be considered 

significant and adverse unless the 

comment explains how the direct final 

rule would be ineffective without the 

addition. 

OWCP requests comments on all 

issues related to this rule, including 

economic or other regulatory impacts of 

this rule on the regulated community. 

All interested parties should comment 

at this time because OWCP will not 

initiate an additional comment period 

on this proposed rule even if it 

withdraws the direct final rule. 

II. Background of This Rulemaking 

The LHWCA, 33 U.S.C. 901–950, 

establishes a comprehensive federal 

workers’ compensation system for an 

employee’s disability or death arising in 

the course of covered maritime 

employment. Metropolitan Stevedore 

Co. v. Rambo, 515 U.S. 291, 294 (1995). 

The Act’s provisions have been 

extended to: (1) Contractors working on 

military bases or U.S. government 

contracts outside the United States 

(Defense Base Act, 42 U.S.C. 1651–54); 

(2) employees of nonappropriated fund 

instrumentalities (Nonappropriated 

Fund Instrumentalities Act, 5 U.S.C. 

8171–73); (3) employees engaged in 

operations that extract natural resources 

from the outer continental shelf (Outer 

Continental Shelf Lands Act, 43 U.S.C. 

1333(b)); and (4) private employees in 

the District of Columbia injured prior to 

July 26, 1982 (District of Columbia 

Workers’ Compensation Act of May 17, 

1928, Pub. L. 70–419 (formerly codified 

at 36 DC Code 501 et seq. (1973) 

(repealed 1979)). Consequently, the Act 

and its extensions cover a broad range 

of claims for injuries that occur 

throughout the United States and 

around the world. 

The Department’s regulations 

implementing the LHWCA and its 

extensions (20 CFR parts 701–704) 

currently contemplate that private 

parties and OWCP file and exchange 

documents only in paper form and, in 

some instances, require transmission via 

specific methods such as certified mail, 

U.S. mail, or hand delivery. Because 

many of these procedural rules were last 

amended in 1985 and 1986, see 51 FR 

4270 (February 3, 1986); 50 FR 384 

(January 3, 1985), they do not address 

whether the parties or OWCP may use 

electronic communication methods 

(e.g., facsimile, email, web portal) or 

commercial delivery services (e.g., 

United Parcel Service, Federal Express). 

These communication methods have 

now become ubiquitous and are 

routinely relied upon by individuals, 

businesses, and government agencies 

alike. 

Recently, OWCP has been employing 

electronic technology to improve the 

program’s administration. In 2009, 

OWCP began accepting reports of 

insurance coverage electronically. See 

Notice from Chief, Branch of Financial 

Management, Insurance and 

Assessments (December 2, 2009) http:// 

www.regulations.gov (docket folder for 

RIN 1240–AA09); Industry Notice No. 

138 (January 3, 2012) http://

www.dol.gov/owcp/dlhwc/

lsindustrynotices/

industrynotice138.htm. In 2013, OWCP 

began creating electronic case files for 

all new LHWCA cases. See LHWCA 

Bulletin No. 14–03 (November 26, 

2013), http://www.dol.gov/owcp/dlhwc/

LSBulletin14–03.pdf. And in 2014, 

OWCP launched SEAPortal, a Webbased electronic portal that parties may 

use to submit case-specific documents 

to OWCP. See Industry Notice No. 148 

(October 31, 2014), http://www.dol.gov/ 

owcp/dlhwc/lsindustrynotices/

industrynotice148.pdf. These 

advancements have enhanced claims 

administration within OWCP and the 

parties’ ability to submit documents to 

OWCP. But they do not adequately 

expand the methods employers, 

claimants, insurers, and OWCP may use 

to transmit documents and information 

to each other. 

Consistent with other workers’ 

compensation schemes, the LHWCA 

provides ‘‘limited liability for 

employers’’ and ‘‘certain, prompt 

recovery for employees.’’ Roberts v. 

Sea–Land Servs., Inc., __U.S. __, 132 

S.Ct. 1350, 1354 (2012). These goals are 

advanced through efficient and effective 

communications between the private 

parties and OWCP. The Department 

thus proposes to revise the regulations 

to: (1) Remove bars to using electronic 

and other commonly used 

communication methods wherever 

possible; (2) provide flexibility for 

OWCP to allow the use of technological 

advances in the future; and (3) ensure 

that all parties remain adequately 

apprised of claim proceedings. 

Because the proposed revisions are 

procedural in nature, the Department 

intends to apply the rules to all matters 

pending on the date the rule is effective 

as well as those that arise thereafter. 

This will not work a hardship on the 

private parties or their representatives 

since, as explained below, the revisions 

either codify current practice or broaden 

the methods by which documents and 

information may be transmitted. 

III. Legal Basis for the Rule 

Section 39(a) of the LHWCA, 33 

U.S.C. 939(a), authorizes the Secretary 

of Labor to prescribe all rules and 

regulations necessary for the 

administration and enforcement of the 

Act and its extensions. The LHWCA 

also grants the Secretary authority to 

determine by regulation how certain 

statutory notice and filing requirements 

are met. See 33 U.S.C. 907(j)(1) (the 

Secretary is authorized to ‘‘make rules 

and regulations and to establish 

procedures’’ regarding debarment of 

physicians and health care providers 

under 33 U.S.C. 907(c)); 33 U.S.C. 912(c) 

(employer must notify employees of the 

official designated to receive notices of 

injury ‘‘in a manner prescribed by the 

Secretary in regulations’’); 33 U.S.C. 

919(a) (claim for compensation may be 

filed ‘‘in accordance with regulations 

prescribed by the Secretary’’); 33 U.S.C. 

919(b) (notice of claim to be made ‘‘in 

accordance with regulations prescribed 

by the Secretary’’); 33 U.S.C. 935 (‘‘the 

Secretary shall by regulation provide for 

the discharge, by the carrier,’’ of the 

employer’s liabilities under the Act). 

The rules proposed below fall well 


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Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 12959 

within these statutory grants of 

authority. 

In developing these rules, the 

Department has also considered the 

principles underlying two additional 

statutes: The Government Paperwork 

Elimination Act (GPEA), 44 U.S.C. 3504, 

and the Electronic Signatures in Global 

and National Commerce Act (E–SIGN), 

15 U.S.C. 7001 et seq. GPEA requires 

agencies, when practicable, to store 

documents electronically and to allow 

individuals and entities to communicate 

with agencies electronically. It also 

provides that electronic documents and 

signatures will not be denied legal effect 

merely because of their electronic form. 

Similarly, E–SIGN generally provides 

that electronic documents have the 

same legal effect as their hard copy 

counterparts and allows electronic 

records to be used in place of hard copy 

documents with appropriate safeguards. 

15 U.S.C. 7001. Under E–SIGN, federal 

agencies retain the authority to specify 

the means by which they receive 

documents, 15 U.S.C. 7004(a), and to 

modify the disclosures required by 

Section 101(c), 15 U.S.C. 7001(c), under 

appropriate circumstances. The rules 

proposed below are consistent with and 

further the purposes of GPEA and E– 

SIGN. 

IV. Proposed Rule 

A. General Provisions 

The Department is proposing several 

general revisions to advance the goals 

set forth in Executive Order 13563 

(January 18, 2011). That Order states 

that regulations must be ‘‘accessible, 

consistent, written in plain language, 

and easy to understand.’’ 76 FR 3821; 

see also E.O. 12866, 58 FR 51735 

(September 30, 1993) (‘‘Each agency 

shall draft its regulations to be simple 

and easy to understand, with the goal of 

minimizing the potential for uncertainty 

and litigation arising from such 

uncertainty.’’). Accordingly, the 

Department proposes to remove the 

imprecise term ‘‘shall’’ throughout those 

sections it is amending and substitute 

‘‘must,’’ ‘‘must not,’’ ‘‘will,’’ or other 

situation-appropriate terms. These 

changes are designed to make the 

regulations clearer and more userfriendly. See generally Federal Plain 

Language Guidelines, http://

www.plainlanguage.gov/howto/

guidelines. 

Executive Order 13563 also instructs 

agencies to review ‘‘rules that may be 

outmoded, ineffective, insufficient, or 

excessively burdensome, and to modify, 

streamline, expand, or repeal them.’’ As 

a result, the Department proposes to 

cease publication of two rules that are 

obsolete or unnecessary. These rules are 

set forth in the Section-by-Section 

Explanation below. 

B. Section-by-Section Explanation 

20 CFR 702.101 Exchange of 

documents and information. 

This proposed section is new. It sets 

out general rules for transmitting 

documents and information that apply 

except when another rule or OWCP 

requires a specific form of 

communication. 

Paragraph (a) specifies the methods by 

which documents and information must 

be sent to OWCP. Paragraph (a)(1) 

specifies that hard copy documents and 

information must be submitted by postal 

mail, commercial delivery service, or 

delivered by hand. Paragraph (a)(2) 

specifies that electronic documents and 

information must be submitted through 

an electronic system that has been 

authorized by OWCP. OWCP’s 

SEAPortal is an example of such a 

system. Paragraph (a)(3) recognizes that 

occasions may arise where transmission 

methods other than those enumerated 

would be preferable and provides that 

additional methods may be used when 

allowed by OWCP. 

Paragraph (b) specifies the methods 

by which documents and information 

must be sent from OWCP to parties and 

their representatives or exchanged 

between parties and party 

representatives. Paragraph (b)(1) 

specifies that hard copy documents 

must be sent or exchanged by postal 

mail, commercial delivery service, or 

hand delivery. Paragraph (b)(2) specifies 

that documents and information can be 

sent or exchanged electronically, but 

only if they are sent through a reliable 

method and the receiving party agrees 

in writing to accept electronic 

transmission by the particular method 

used. Requiring written confirmation 

protects all parties and representatives 

from misunderstandings about service 

and ensures that the recipient has the 

technology necessary to receive 

documents by the selected method. The 

Department does not intend that this 

process be overly formalistic; a letter, 

email or other writing memorializing 

the receiving party’s agreement would 

be sufficient to satisfy the regulatory 

requirement. A party’s agreement to 

receive documents or information 

electronically, although required before 

a sender can elect to use an electronic 

transmission method, does not obligate 

the sender to use an electronic 

transmission method. Finally, paragraph 

(b)(3) specifies that documents and 

information can be sent or exchanged 

through any OWCP-authorized 

electronic system that allows for service 

of documents. Although not currently 

available, this provision is added for use 

in the event OWCP adopts such a 

system in the future. 

Paragraph (c) provides a nonexhaustive list of reliable electronic 

transmission methods. 

Paragraph (d) specifies that parties or 

representatives who agree to receive 

documents electronically in accordance 

with paragraph (b)(2) can revoke their 

agreement by giving written notice to 

the person or entity with whom they 

initially agreed to receive documents 

electronically. For example, if a 

claimant’s legal representative no longer 

wishes to receive documents 

electronically from the employer’s 

attorney, the representative can revoke 

the agreement by simply notifying 

opposing counsel in writing. Similarly, 

if a pro se claimant initially agrees to 

receive documents electronically from 

OWCP, he or she may terminate that 

agreement by sending a letter or some 

other form of writing to OWCP. As with 

the procedure for agreeing to electronic 

service, the Department does not intend 

this procedure to be overly formalistic. 

Paragraph (e) recognizes that the 

Longshore regulations use various terms 

to describe the process of exchanging 

documents and information with OWCP 

and between parties. It provides that 

paragraphs (a) through (d) apply when 

those terms are used. 

Paragraph (f) clarifies that references 

to documents include both electronic 

and hard copy documents. 

Paragraph (g) explains that a 

requirement that something be in 

writing, signed, certified, or executed 

does not presuppose that the document 

must be in hard copy. 

Paragraph (h) states that an entity’s 

address may include its electronic 

address or web portal. 

Finally, paragraphs (i)(1) and (2) 

clarify that when a document must be 

sent to a particular district director’s 

office or a district director must take an 

action with respect to a document in his 

or her office, the physical or electronic 

address or file location provided for that 

district director’s office by OWCP rather 

than that district director’s physical 

location controls. These provisions 

accommodate the Department’s current 

and anticipated future plans to have 

most mail for district offices sent to a 

central mail receipt location and 

eventually to an electronic location and 

to handle documents in an electronic 

case file environment. 

20 CFR 702.102 Establishment and 

modification of compensation districts, 

establishment of suboffices and 

jurisdictional areas. 


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12960 Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 

Current § 702.102(a) explains that the 

Director has established compensation 

districts as required under the Act and 

specifies that the Director must notify 

interested parties ‘‘by mail’’ of changes 

to the compensation districts. Proposed 

§ 701.102(a) removes the phrase ‘‘by 

mail’’ to broaden the methods by which 

the Director may notify interested 

parties of a change to the compensation 

districts. 

20 CFR 702.103 Effect of 

establishment of suboffices and 

jurisdictional areas. 

Current § 702.103 explains that the 

Director may require claims-related 

materials to be filed in suboffices. 

Proposed § 702.103 changes the phrase 

‘‘at the suboffice’’ to ‘‘with the 

suboffice’’ to reflect that documents 

being filed with a suboffice will not 

necessarily be filed at that suboffice per 

se, but rather will be filed at the 

physical or electronic address provided 

by OWCP. 

20 CFR 702.104 Transfer of 

individual case file. 

Current § 702.104(b) provides that the 

district director who is transferring a 

case to a different district office may 

give advice, comments, or suggestions to 

the district director receiving the case. 

The regulation also specifies that the 

transfer must be made by registered or 

certified mail. District directors now 

have the capacity to transfer many cases 

by secure electronic means, or may 

prefer to use a commercial delivery 

service such as Federal Express or the 

United Parcel Service. Accordingly, 

proposed § 702.104 removes the 

requirement that cases be transferred by 

registered or certified mail to broaden 

the methods by which district directors 

may transfer cases between offices. 

20 CFR 702.174 Exemptions; 

necessary information. 

Current § 702.174(b)(1) provides that 

in cases where the Director approves an 

employer’s application for an exemption 

from coverage under the Act, the 

Director shall notify the employer of its 

exemption by certified mail, return 

receipt requested. This non-statutory 

requirement limits the Director’s ability 

to take advantage of other efficient 

means of service that may be less costly. 

Accordingly, proposed § 702.174(b)(1) 

removes the certified mail requirement 

to broaden the methods by which the 

Director may notify employers that their 

application for exemption has been 

approved. The proposed rule also 

includes a technical amendment to 

§ 702.174(b)(2) to conform the language 

regarding notification of a denial of 

exempt status to the language in revised 

subsection (b)(1). 

20 CFR 702.203 Employer’s report; 

how given. 

Current § 702.203 provides that 

employers must submit their injury 

reports by delivering or mailing an 

original and one copy to the office of the 

district director. The rule implements 

the statutory directive to employers to 

‘‘send to the Secretary a report’’ of 

injury and ‘‘a copy of such report’’ to 

the district director within ten days of 

an employee’s injury or death. 33 U.S.C. 

930(a), (b). Although not reflected in the 

current regulation, the Act also provides 

that ‘‘mailing’’ a report ‘‘in a stamped 

envelope’’ within the ten-day time 

period satisfies the statute’s 

requirements. 33 U.S.C. 930(d). 

Proposed § 702.203 revises the current 

rule in two ways. First, proposed 

paragraph (a) eliminates the 

requirement that employers provide an 

original and a copy of their injury 

reports. OWCP has instituted a policy of 

storing documents electronically; thus, 

there is no continuing need to submit 

multiple copies of the same document. 

Instead, submission of one report to the 

district director will satisfy the 

employer’s statutory obligation to notify 

both the Secretary and the district 

director. Second, proposed paragraph 

(b) modifies the current regulation to 

address what actions satisfy the ten-day 

time period for filing the injury report. 

Consistent with Section 30(d), proposed 

paragraph (b) specifies that when sent 

by U.S. postal mail, an employer’s 

report of injury will be deemed filed on 

the date mailed. The proposed rule 

extends this same statutory concept— 

that an employer meets the reporting 

obligation when it sends the report, not 

when the report is received by OWCP— 

to commercial delivery services and 

electronic filings. Thus, the rule 

provides that the report will be 

considered filed on the date given to a 

commercial delivery service or, when 

sent by permissible electronic means, 

the date the employer completes all 

steps necessary for electronic delivery. 

20 CFR 702.215 Notice; how given. 

Current § 702.215 provides that an 

employee’s notice of injury or survivor’s 

notice of death must be given to the 

employer by hand delivery or by mail. 

It further provides that notice of an 

injury may be given to the district 

director by hand delivery, mail, orally 

in person, or by telephone. Proposed 

§ 702.215 modifies the current section to 

allow the use of additional means of 

providing notice to the employer and to 

the district director. 

For employer notice, the proposed 

rule allows an employee or survivor to 

provide notice at the physical or 

electronic address supplied by the 

employer. Using the broader ‘‘physical’’ 

address term encompasses the current 

hand and mail delivery, and expands it 

to other methods such as a commercial 

delivery service. And by allowing notice 

to be delivered to an electronic address, 

employers will be able to adopt 

electronic systems (e.g., email, web 

portal) that may speed the injury 

reporting process. For district director 

notice, the proposed regulation provides 

that the employee’s or survivor’s notice 

of injury may be given to the district 

director by submitting the correct form. 

Using the word ‘‘submitting’’ brings this 

document within the general 

transmission rule set forth in proposed 

20 CFR 702.101(a), thus implementing 

the statutory directive that notice be 

given to the district director ‘‘by 

delivering it to him or sending it by mail 

addressed to his office.’’ 33 U.S.C. 

912(c). The proposed rule retains the 

option of reporting injuries to the 

district director either in person or by 

telephone. 

20 CFR 702.224 Claims; notification 

of employer of filing by employee. 

Current § 702.224 requires the district 

director to give the employer or 

insurance carrier written notice of 

claims for compensation served 

‘‘personally or by mail.’’ This regulation 

implements the statutory requirement 

that the district director provide notice 

of claims to interested parties, which 

‘‘may be served personally upon the 

employer or other person, or sent to 

such employer or person by registered 

mail.’’ 33 U.S.C. 919(b). Proposed 

§ 702.224 deletes the current rule’s 

reference to specific service methods. 

Using the phrase ‘‘give notice’’ brings 

the notice within the general 

transmission rule set forth in proposed 

20 CFR 702.101(a), which allows for 

methods of service beyond mailing and 

what is traditionally considered 

personal service. Because the statute 

uses the permissive term ‘‘may’’ in 

addressing service methods for this 

notice and does not mandate any 

particular method, the revision to the 

proposed rule is also consistent with the 

statute. 

20 CFR 702.234 Report by employer 

of commencement and suspension of 

payments. 

Current § 702.234 provides that the 

employer shall immediately notify the 

district director having jurisdiction over 

the place where the injury or death 

occurred when it makes its first 

payment of compensation or suspends 

payment of compensation. The 

Department recognizes that cases are not 

always adjudicated by the district 

director who has jurisdiction over the 

place where the injury or death 


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Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 12961 

occurred. For example, cases may be 

transferred to a district other than the 

district where the injury occurred if a 

worker moves his or her residence to a 

different compensation district. 20 CFR 

702.104. Thus, proposed § 702.234 

removes the reference to the district 

director having jurisdiction over the 

place where the injury or death 

occurred and instead directs the 

employer to notify the district director 

who is administering the claim. 

20 CFR 702.243 Settlement 

application; how submitted, how 

approved, how disapproved, criteria. 

Current § 702.243(a) requires that 

settlement applications be sent to the 

adjudicator by certified mail, return 

receipt requested, submitted in person, 

or sent by any other delivery service 

with proof of delivery to the 

adjudicator. The Department proposes a 

modification to this subsection that will 

explicitly allow parties to submit 

settlement applications via commercial 

delivery service with tracking capability 

or electronically through an OWCPauthorized system. 

Current § 702.243(c) requires that 

when the adjudicator disapproves a 

settlement application, he or she must 

serve a disapproval letter or order on the 

parties by certified mail. This 

requirement both limits the 

adjudicator’s ability to take advantage of 

more efficient means of service and 

imposes an unnecessary expense. 

Accordingly, the Department proposes 

to remove the requirement that notice be 

sent by certified mail in order to 

broaden the methods by which 

adjudicators may notify parties that 

their settlement applications have been 

disapproved. 

20 CFR 702.251 Employer’s 

controversion of the right to 

compensation. 

Current § 702.251 requires that 

employers notify the district director of 

their election to controvert a claim by 

sending the ‘‘original notice’’ of 

controversion form to the district 

director and a copy to the claimant. By 

requiring the ‘‘original’’ form, the 

regulation implies that the employer 

must deliver a hard copy form bearing 

its authorized signature in ink. There is 

no statutory requirement that an 

employer submit an original form in 

that manner and requiring the employer 

to do so by regulation unduly limits the 

means by which the employer would 

otherwise be permitted to submit the 

form. For example, OWCP has instituted 

a policy of accepting case-related 

documents electronically through its 

web portal. Further, OWCP now scans 

and electronically stores the documents 

it receives, so the ‘‘original’’ document 

submitted by the employer would not be 

retained in hard copy. For these reasons, 

there is no need to require employers to 

send an ‘‘original’’ document to the 

district director. Thus, proposed 

§ 702.251 omits the requirement that an 

original document be provided. 

20 CFR 702.261 Claimant’s contest 

of actions taken by employer or carrier 

with respect to the claim. 

Current § 702.261 provides that a 

claimant who contests a reduction, 

termination, or suspension of benefits 

by the employer or carrier must notify 

the office of the district director having 

jurisdiction either in person or in 

writing and explain the basis for his or 

her complaint. Proposed § 702.101 

specifies the methods by which the 

claimant can provide documents or 

information to OWCP, and there is no 

statutory requirement pertaining to 

claimants’ contests of employer or 

carrier action that justifies treating 

transmission of this type of information 

differently. Accordingly, proposed 

§ 702.261 eliminates the requirement 

that notice be given in person or in 

writing. In addition, the proposed rule 

substitutes the phrase ‘‘the district 

director who is administering the 

claim’’ for the phrase ‘‘the district 

director having jurisdiction.’’ As noted, 

claims are not always handled by the 

district director for the district where 

the injury or death occurred. See 20 CFR 

702.104. To clarify the regulation, 

proposed § 702.234 directs the claimant 

to notify the district director who is 

administering the claim when he or she 

wishes to contest the employer’s or 

carrier’s actions. 

20 CFR 702.272 Informal 

recommendation by district director. 

Current § 702.272 concerns informal 

recommendations by the district 

director regarding claims of improper 

discharge or discrimination against 

employees who seek compensation 

under the Act or testify in a 

compensation claim under the Act. 

Paragraph (a) provides that where the 

employee and employer agree to the 

district director’s recommendation, that 

recommendation shall be incorporated 

into an order and mailed to the parties. 

The Department proposes to remove the 

reference to service by mail and instead 

indicate that service should be 

accomplished under the same 

procedures that govern service of 

compensation orders under § 702.349. 

Current § 702.272(b) provides that 

where the parties do not agree to the 

district director’s recommendation, the 

director must ‘‘mail’’ a memorandum to 

the parties that summarizes the 

disagreement. This requirement 

precludes the Director from using other 

methods of service. Accordingly, the 

Department proposes to delete the word 

‘‘mail’’ and replace it with the word 

‘‘send’’ so that delivery of the 

memorandum is governed by the 

general rule in proposed § 702.101. 

20 CFR 702.281 Third party action. 

Current § 702.281(b) provides that in 

order for an employee to settle a claim 

with a third party for an amount less 

than the employee would receive under 

the Act, the employee must first receive 

prior written approval from the 

employer and the employer’s carrier. 

That approval must be filed with the 

district director with jurisdiction where 

the injury occurred. As noted, claims 

are not always handled by the district 

director for the district where the injury 

or death occurred. See 20 CFR 702.104. 

Thus, proposed § 702.281(b) directs that 

the approval be filed with the district 

director who is administering the claim. 

20 CFR 702.315 Conclusion of 

conference; agreement on all matters 

with respect to the claim. 

Current § 702.315(a) provides that 

when an informal conference results in 

a formal compensation order, the order 

must be ‘‘filed and mailed in accordance 

with § 702.349.’’ This rule also provides 

that when the problem considered is 

resolved by telephone or by exchange of 

written correspondence, the parties 

shall be notified by the same method 

through which agreement was reached, 

and the district director will also issue 

a memorandum or order setting forth 

the agreed terms. Proposed § 702.315(a) 

revises the rule in two ways. First, the 

proposed rule substitutes the phrase 

‘‘filed and served’’ for ‘‘filed and 

mailed’’ to conform the language to the 

proposed addition of § 702.349(b), 

which would allow parties and their 

representatives to waive registered and 

certified mail service of compensation 

orders. Second, to allow more 

flexibility, proposed § 702.315(a) 

eliminates the requirement that the 

district director use the same method to 

communicate the results of the 

conference but preserves the authority 

to communicate those results by 

telephone. 

20 CFR 702.317 Preparation and 

transfer of the case for hearing. 

Current § 702.317 provides rules for 

transferring a case from the district 

director’s office to the Office of 

Administrative Law Judges (OALJ) for 

hearing. When the district director 

receives pre-hearing statement forms 

from the parties and determines that no 

further conferences will help resolve the 

dispute, § 702.317(c) instructs the 

district director to transmit the prehearing statements, a transmittal letter, 

and certain other evidence to OALJ. 


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Paragraph (c) excepts from this 

requirement materials ‘‘not suitable for 

mailing.’’ To avoid any implication that 

these documents must be mailed 

between the district director and OALJ 

rather than transmitted by some other 

method (e.g., commercial delivery 

service, electronically), the Department 

proposes to substitute the term 

‘‘transmission’’ for ‘‘mailing’’ in 

paragraph (c). 

20 CFR 702.319 Obtaining 

documents from the administrative file 

for reintroduction at formal hearings. 

Current § 702.319 provides that upon 

receipt of a request for a document from 

the administrative file, the district 

director shall give the original 

document to the requester and retain a 

copy in the file. OWCP has instituted a 

policy of storing documents 

electronically rendering it unable to 

send requesters original documents. A 

properly reproduced copy of the 

electronically stored document can be 

used in adjudicative proceedings. See 

United States v. Hampton, 464 F.3d 

687, 690 (7th Cir. 2006) (holding that 

copies of documents are admissible to 

the same extent as the original 

documents unless there is an issue with 

the authenticity of the original); United 

States v. Georgalis, 631 F.2d 1199, 1205 

(5th Cir. 1980) (‘‘A duplicate may be 

admitted into evidence unless . . . there 

is a genuine issue as to the authenticity 

of the unintroduced original, or as to the 

trustworthiness of the duplicate. . .’’). 

Accordingly, proposed § 702.319 

specifies that the district director will 

send a copy of the requested 

document(s) to the requester and retain 

a copy of the record request and a 

statement of whether it has been 

satisfied in the administrative file. 

20 CFR 702.321 Procedures for 

determining applicability of section 8(f) 

of the Act. 

Current § 702.321(a)(1) requires 

employers or carriers who file 

applications under Section 8(f) of the 

Act to file those applications in 

duplicate. As OWCP has instituted a 

policy of storing documents 

electronically, there is no continuing 

need to file multiple copies of the same 

document. Accordingly, the Department 

proposes to delete this requirement from 

§ 702.321(a)(1). The Department also 

proposes eliminating the mid-paragraph 

numbering in this provision. This 

technical change is made to conform to 

the current formatting rules of the Office 

of the Federal Register. 

20 CFR 702.349 Formal hearings; 

filing and mailing of compensation 

orders; disposition of transcripts. 

Current § 702.349 provides that at the 

conclusion of the administrative 

hearing, the administrative law judge 

shall deliver the administrative record 

‘‘by mail or otherwise’’ to the district 

director that had original jurisdiction 

over the case. As noted above, cases are 

not always administered by the district 

director who has ‘‘original’’ jurisdiction 

over the controversy. For example, cases 

may be transferred to a district other 

than the district where the injury 

occurred if a worker moves his or her 

residence to a different compensation 

district. See 20 CFR 702.104. Thus, the 

Department proposes removing the 

reference to the district director that had 

original jurisdiction and instead 

directing the administrative law judge to 

forward the record to the district 

director who administered the case. 

The proposed rule makes two 

additional revisions to the existing 

language designed to accommodate 

transmission of decisions and case 

records electronically between OWCP 

and the Office of Administrative Law 

Judges. First, the proposed rule 

eliminates the language that the case 

record be sent to the district director 

‘‘together with’’ a signed compensation 

order. Currently, the Office of 

Administrative Law Judges does not 

always transmit the full case record at 

the same time as the compensation 

order. Moreover, OWCP also anticipates 

that, as an intermediate step to 

transitioning to a full electronic case file 

environment, a system may be adopted 

for administrative law judge decisions 

to be transmitted electronically to 

OWCP for filing and service. Second, 

the proposed rule eliminates reference 

to the ‘‘original’’ compensation order in 

anticipation of future expansion of the 

electronic case file system. The term 

‘‘original’’ implies that the district 

director must file a paper copy of a 

compensation order. This process may 

not be required in a full electronic case 

file environment. 

The Department also proposes adding 

a new paragraph (b) to this section that 

allows parties and their representatives 

to receive compensation orders by other 

service methods in cases where they 

explicitly waive service by registered or 

certified mail. Under Section 19(e) of 

the Act, 33 U.S.C. 919(e), all parties 

have the right to be served with a 

compensation order via registered or 

certified mail (at OWCP’s option). By 

practice, OWCP has extended this 

service to the parties’ representatives. 

See 20 CFR 702.349. Service via 

registered or certified mail has many 

benefits, but unlike electronic service, it 

cannot be accomplished immediately. 

Several days will generally elapse 

between the date that an order is mailed 

by the district director and the date the 

parties receive it. Some parties and their 

representatives have requested that the 

Department begin serving compensation 

orders immediately by electronic means. 

The right to registered or certified 

mail service of compensation orders is 

a personal right that is conveyed by the 

Act. But there is no indication in the 

Act that the right to registered or 

certified mail service cannot be waived, 

contra 33 U.S.C. 915(b), 916, and it is 

generally presumed that statutory rights 

can be knowingly and voluntarily 

waived. See New York v. Hill, 528 U.S. 

110, 114 (2000). Accordingly, proposed 

§ 702.349(b) institutes a procedure 

allowing parties and their 

representatives who are entitled to 

registered or certified mail service to 

waive their right to such service. The 

waiver applies only to service of 

compensation orders and does not 

extend to other documents or 

information transmitted by OWCP. 

Proposed § 702.349(b) provides that a 

party or their representative can waive 

registered or certified mail service of 

compensation orders by filing the 

appropriate form with the district 

director that is administering the party’s 

case. Waivers will only be accepted if 

they are submitted on the proper form, 

and a separate form must be submitted 

for each party or representative. 

Paragraph (b) emphasizes that 

submission of a completed form 

constitutes a knowing and voluntary 

waiver of registered or certified mail 

service. 

Proposed § 702.349(b)(1)–(b)(5) flesh 

out important details related to the 

waiver of service by registered or 

certified mail. Paragraph (b)(1) provides 

that all parties and representatives must 

provide a valid electronic address on 

the waiver form for the service waiver 

to be effective. 

Proposed paragraph (b)(2) provides 

that parties and their representatives 

must submit a separate waiver form for 

each case in which they intend to waive 

service. Although it is common for 

certain employers, carriers, and 

attorneys to have an interest in several 

Longshore Act cases pending at the 

same time, the district director will not 

accept blanket service waivers. This will 

ensure that the party or representative 

has in fact waived registered or certified 

mail service in the particular case. 

Similarly, proposed paragraph (b)(3) 

prohibits a party’s representative from 

signing the waiver form on the party’s 

behalf. Instead, to ensure that waivers 

are knowing and voluntary, the parties 

themselves must sign the waiver forms. 

Proposed paragraph (b)(4) provides 

that all compensation orders issued after 

the service waiver form is received will 


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be served in accordance with the 

instructions on the form provided by the 

party or representative. This includes 

supplementary compensation orders 

and orders on modification. This 

paragraph also specifies that individuals 

must submit another waiver form to 

change their service address or to revoke 

the waiver. 

Finally, proposed paragraph (b)(5) 

provides that the district director will 

serve parties and their representatives 

by certified mail despite the existence of 

a waiver form if there is some problem 

with the service method selected. Thus, 

for example, the district director will 

effect service by certified or registered 

mail if he or she receives an error 

message when trying to serve a party or 

representative via email. 

20 CFR 702.372 Supplementary 

compensation orders. 

Current § 702.372(b) requires that 

supplementary compensation orders 

declaring amounts of compensation in 

default be served by certified mail on 

the parties and their representatives. 

This provision implements Section 

18(a) of the Act, which requires that 

supplementary orders ‘‘be filed in the 

same manner as the compensation 

order.’’ 33 U.S.C. 918(a). As discussed 

above, Section 19(e) of the Act requires 

that compensation orders be filed in the 

office of the district director, and then 

served by registered or certified mail. 33 

U.S.C. 919(e). The Department proposes 

redrafting § 702.372(b) to incorporate 

the filing provisions found in proposed 

§ 702.349. This revision will clarify that 

supplementary compensation orders 

must be treated like any other 

compensation order for purposes of 

filing and service. In addition, by crossreferencing § 702.349, the Department 

intends to extend the provisions 

allowing voluntary waiver of registered 

or certified mail service in proposed 

§ 702.349(b) to supplementary 

compensation orders. 

20 CFR 702.432 Debarment process. 

Current § 702.432(b) provides that 

when the Director determines that 

debarment proceedings are appropriate 

against a physician, health care provider 

or claims representative, he or she will 

notify the individual by certified mail, 

return receipt requested. Similarly, 

current § 702.432(e) requires that the 

Director send a copy of his or her 

decision regarding debarment to the 

individual by certified mail, return 

receipt requested. This method of 

service is not required by the statute in 

either instance. And requiring certified 

mail service both limits the Director’s 

ability to take advantage of electronic 

means of service and imposes an 

unnecessary expense. Accordingly, to 

broaden the methods by which the 

Director may notify individuals of 

debarment proceedings and decisions 

rendered in them, the Department 

proposes removing the requirement that 

notice be sent by certified mail with 

return receipt requested from 

paragraphs (b) and (e). 

20 CFR 702.433 Requests for 

hearing. 

Current § 702.433(b) requires that the 

administrative law judge who will 

conduct a hearing regarding debarment 

serve a copy of a notice of hearing on 

the individual who may be subject to 

debarment via certified mail, return 

receipt requested. This method of 

service is not required by the statute, 

and it both limits the administrative law 

judge’s ability to take advantage of 

electronic service methods and imposes 

an unnecessary expense. Accordingly, 

proposed § 702.433(b) eliminates the 

certified mail requirement so as to 

broaden the means by which the 

administrative law judge may notify 

individuals of hearings regarding 

debarment. 

20 CFR 703.2 Forms. 

Current § 703.2(a) provides that 

information sent by insurance carriers 

and self-insured employers to OWCP 

pursuant to Part 703 must be submitted 

on Forms specified by the Director. In 

order to facilitate the most efficient 

processing of Part 703 information, 

proposed § 703.2(a) specifies that the 

forms must be submitted to OWCP in 

the manner it specifies. 

20 CFR 703.113–703.120 and 703.502

Reporting related to insurance coverage. 

This set of regulations governs how 

matters related to insurance coverage 

are reported to OWCP and the 

consequences of those reports. In the 

past, insurance companies reported 

issuance of policies and endorsements 

by filing a Form LS–570 (Carrier’s 

Report of Issuance of Policy) in hard 

copy with the district director in whose 

compensation district the insured 

employer operated. These hard copy 

reports of insurance were retained in the 

compensation district because that was 

the district most likely to use the record. 

OWCP now stores insurance 

information electronically in a system 

maintained by the Division of Longshore 

and Harbor Workers’ Compensation 

(DLHWC) in OWCP’s national office. 

This system is accessible to the district 

offices. Thus, there is no continuing 

need for carriers to report insurance 

information to individual district 

directors. 

To facilitate reporting of insurance 

information, OWCP began instituting an 

electronic system for such reports in 

2009. See Notice from Chief, Branch of 

Financial Management, Insurance and 

Assessments (December 2, 2009) http:// 

www.regulations.gov (docket folder for 

RIN 1240–AA09); Industry Notice No. 

138 (January 3, 2012) http://

www.dol.gov/owcp/dlhwc/lsindustry

notices/industrynotice138.htm. Many 

insurance companies now report 

coverage, including policy 

cancellations, to industry data 

collection organizations (e.g., New York 

Compensation Rating Board, National 

Council on Compensation Insurance, 

Inc.) that, in turn, report the information 

to DLHWC on the carriers’ behalf. 

DLHWC receives that information via a 

daily electronic data interchange with 

the data collection organizations and 

places it in a centralized electronic 

repository that the individual district 

directors can access immediately. It is 

common practice in the insurance 

industry to provide this sort of 

information electronically, and many 

carriers have been voluntarily reporting 

coverage under the Act and its 

extensions to DLHWC electronically for 

several years now. The system has 

proven to be efficient and preferable for 

both OWCP and the reporting carriers 

who use it. Centralized reporting also 

reduces the recordkeeping burden on 

the district offices, thereby freeing up 

resources for claims administration. 

For these reasons, the proposed rule 

eliminates those provisions that require 

insurance companies to report coverage 

to individual district directors. In 

addition, the proposed rules are drafted 

broadly to accommodate future methods 

of electronic reporting that OWCP may 

choose to adopt. Although OWCP 

prefers receiving insurance information 

electronically, the proposed rules do not 

require carriers to report electronically. 

Carriers can still fulfill their reporting 

obligations by submitting Form LS–570 

to DLHWC. 

Section 703.113 allows for a 

longshoremen’s policy or endorsement 

to specify the particular vessel(s) to 

which it applies. It provides that the 

carrier shall send the report of issuance 

of a policy or endorsement that is 

required by § 703.116 to the district 

director for the compensation district 

where the vessel(s)’ home port is 

located. To conform this regulation to 

the centralized reporting system, 

proposed § 703.113 replaces references 

to the district director with references to 

DLHWC. 

Section 703.114 provides that 

cancellation of a contract or policy of 

insurance will not be effective unless 

done in compliance with Section 36(b) 

of the Act, which requires that 

insurance providers send a notice of 

cancellation to the district director and 


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12964 Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 

the employer 30 days prior to the date 

that a policy termination is effective. 

See 33 U.S.C. 936(b). The Act also 

requires that the notice be in writing 

and given to the district director ‘‘by 

delivering it to him or sending it by mail 

addressed to his office, and to the 

employer by delivering it to him or by 

sending it by mail addressed to him at 

his last known place of business.’’ 33 

U.S.C. 912(c); see also 33 U.S.C. 936(b). 

The proposed rule specifies the 

methods an insurer can use to give 

notice of cancellation. For notice to the 

district director, the proposed rule 

allows insurers to report cancellations 

to DLHWC either in a manner 

prescribed under proposed § 702.101(a) 

or in the same manner as they report 

coverage under § 703.116 (including, 

where applicable, through industry data 

collection organizations). Reporting 

through these established channels 

satisfies the statutory requirement that 

notice be delivered to the district 

director. For notice to the employer, the 

proposed rule requires that the 

cancellation notice be sent in 

accordance with the methods set forth 

in proposed § 702.101(b). Complying 

with proposed § 702.101(b) satisfies the 

statutory requirement that the 

cancellation notice be delivered to the 

employer. Importantly, an electronic 

report made to DLHWC does not relieve 

the carrier of its obligation to also 

provide written notice of cancellation to 

the employer. Moreover, the proposed 

rule retains the statutory requirement 

that notice to both DLHWC and the 

employer must be provided 30 days 

before the cancellation is intended to be 

effective. 

Section 703.116, as currently written, 

requires insurance carriers to report all 

policies and endorsements issued by 

them to employers carrying on business 

within a compensation district to that 

particular district director. To conform 

this regulation to the centralized 

reporting system, proposed § 703.116 

replaces references to the district 

director with references to DLHWC. In 

addition, proposed § 703.116 

specifically acknowledges that reports 

made through an OWCP-authorized 

electronic system, such as an industry 

data collection organization, satisfy the 

carrier’s reporting obligation. 

Instructions for submitting coverage 

information to DLHWC electronically 

will be posted on OWCP’s Web site at 

http://www.dol.gov/owcp/dlhwc/

carrier.htm. 

Section 703.117 specifies that the 

report required by § 703.116 must be 

sent by the insurance carrier’s home 

office or authorized agent. The 

regulation assumes that such reports 

will be made to the district director in 

the compensation district where the 

employer is located, and requires the 

carrier to tell the district director which 

agency is authorized to issue reports on 

its behalf. To conform this regulation to 

the centralized reporting system, 

proposed § 703.117 replaces references 

to the district director with references to 

DLHWC. 

Section 703.118 provides that all 

applicants for authority to write 

insurance under the Act shall be 

deemed to have agreed to accept full 

liability for the insured’s obligations 

under the Act. The current regulation 

presumes that the district director for 

the compensation district where an 

insured employer carries on operations 

will receive and accept the carrier’s 

report of insurance. To conform this 

regulation to the centralized reporting 

system, proposed § 703.118 replaces 

references to the district director with 

references to DLHWC. 

Section 703.119 governs the situation 

where an employer that is carrying on 

operations covered by the Act in one 

compensation district plans to begin 

operations in a second. The regulation 

provides that the carrier may submit the 

report required by § 703.116 to the 

district director in the new 

compensation district before the 

employer has an address in the new 

district. Because carriers will no longer 

be expected to provide notice regarding 

insurance coverage to individual district 

directors, there is no longer any need for 

the procedure set forth in current 

§ 703.119. Accordingly, the Department 

proposes deleting this section. 

Section 703.120 provides that a 

separate report required by § 703.116 

must be made for each employer that is 

covered by a policy. DLHWC is able to 

automatically extract employer-specific 

coverage information from most 

electronic reports that it receives, so this 

requirement is often unnecessary when 

coverage is reported electronically. 

Accordingly, proposed § 703.120 is 

limited to reports made on Form LS–570 

(Carrier’s Report of Issuance of Policy.) 

The current regulation also presumes 

that the district director for the 

compensation district where an insured 

employer carries on operations will 

receive and accept the carrier’s report of 

insurance. To conform this regulation to 

the centralized reporting system, 

proposed § 703.120 replaces references 

to the district director with references to 

DLHWC. 

Section 703.502 provides that district 

directors who receive a report of the 

issuance of a policy that is authorized 

by current § 703.119 shall file the report 

until they receive an address for the 

employer in the new compensation 

district, at which point they shall issue 

a certificate of compliance. The 

Department is deleting current § 703.119 

because carriers will no longer be 

expected to provide notice regarding 

insurance coverage to individual district 

directors. Thus, there is no further need 

for the special procedure laid out in 

§ 703.502. Accordingly, the Department 

proposes deleting this section. 

V. Administrative Law Considerations 

A. Information Collection Requirements 

(Subject to the Paperwork Reduction 

Act) 

The Paperwork Reduction Act of 1995 

(PRA), 44 U.S.C. 3501 et seq., and its 

attendant regulations, 5 CFR part 1320, 

require that the Department consider the 

impact of paperwork and other 

information collection burdens imposed 

on the public. A Federal agency 

generally cannot conduct or sponsor a 

collection of information, and the public 

is generally not required to respond to 

an information collection, unless it is 

approved by the Office of Management 

and Budget (OMB) under the PRA and 

displays a currently valid OMB Control 

Number. In addition, notwithstanding 

any other provisions of law, no person 

shall generally be subject to penalty for 

failing to comply with a collection of 

information that does not display a 

valid Control Number. See 5 CFR 

1320.5(a) and 1320.6. 

If adopted in final, the Transmission 

of Documents and Information Rule will 

allow parties to voluntarily waive their 

statutory right to receive compensation 

orders by registered or certified mail 

and to instead receive them by email. 

See 20 CFR 703.349. To implement the 

waiver process, this rule imposes two 

new collections of information, OWCP 

Form LS–801, Waiver of Service by 

Registered or Certified Mail for 

Claimants and Authorized 

Representatives, and OWCP Form LS– 

802, Waiver of Service by Registered or 

Certified Mail for Employers and/or 

Insurance Carriers. The Department has 

submitted an Information Collection 

Request (ICR) for both of these new 

forms under the emergency procedures 

for review and clearance contained in 5 

CFR 1320.13. 

The Transmission of Documents and 

Information Rule does not materially 

change any other ICR with regard to the 

information collected, but does change 

the manner in which forms that collect 

information may be submitted. Instead 

of mandating the transmission of 

information by postal mail, the rule 

allows OWCP and private parties to use 

electronic and other commonly used 


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communication methods. It also 

provides flexibility for OWCP to allow 

submission of information using future 

technologies. 

The collection of information 

requirements are contained within ICRs 

assigned OMB control numbers: 1240– 

0003, 1240–0004, 1240–0005, 1240– 

0014, 1240–0025, 1240–0026, 1240– 

0029, 1240–0036, 1240–0040, 1240– 

0041, 1240–0042 and 1240–0043. The 

regulatory sections specifying the 

submission procedures are found in 

paragraphs: 20 CFR 702.111, 702.121, 

702.162, 702.174, 702.175, 702.201, 

702.202, 702.221, 702.234, 702.235, 

702.236, 702.242, 702.251, 702.285, 

702.317, 702.321, 702.407, 702.419, 

703.116, 703.203, 703.204, 703.205, 

703.209, 703.210, 703.212, 703.303 and 

703.310. 

Although the rule does not eliminate 

any current methods of submission for 

these collections, because its allowance 

of electronic submission will result in 

mailing cost savings (envelopes and 

postage), OWCP anticipates some 

savings for the public. Given the 

response rate for each of the existing 

collections, current combined mailing 

costs are estimated at $113,977. Once 

the rule becomes final, the Department 

anticipates a 13% rate of electronic 

submission, an accompanying reduction 

in postal mail submission, and a 

resulting cost savings of $14,817. In the 

future, as electronic transmission 

submission options increase and are 

used more frequently, this savings will 

likely increase. The Department has 

submitted a request for a nonsubstantive change for each existing ICR 

cited above in order to obtain approval 

for the changed cost estimate resulting 

from the availability of electronic 

submission methods. 

The submitted ICRs for the two new 

collections imposed by this rule will be 

available for public inspection for at 

least thirty days under the ‘‘Currently 

Under Review’’ portion of the 

Information Collection Review section 

reginfo.gov Web site, available at: http:// 

www.reginfo.gov/public/do/PRAMain. 

The Department will publish a separate 

notice in the Federal Register that will 

announce the result of the OMB 

reviews. Currently approved 

information collections are available for 

public inspection under the ‘‘Current 

Inventory’’ portion of the same Web site. 

Request for Comments: As part of its 

continuing effort to reduce paperwork 

and respondent burden, the Department 

conducts a pre-clearance consultation 

program to provide the general public 

and Federal agencies an opportunity to 

comment on proposed and/or 

continuing collections of information. 

This program helps to ensure requested 

data can be provided in the desired 

format, reporting burden (time and 

financial resources) is minimized, 

collection instruments are clearly 

understood, and the impact of collection 

requirements can be properly assessed. 

Comments on the information collection 

requirements may be submitted to the 

Department in the same manner as for 

any other portion of this rule. 

In addition to having an opportunity 

to file comments with the agency, the 

PRA provides that an interested party 

may file comments on the information 

collection requirements in a proposed 

rule directly with the Office of 

Management and Budget, at Office of 

Information and Regulatory Affairs, 

Attn: OMB Desk Officer for DOL–OWCP 

Office of Management and Budget, 

Room 10235, 725 17th Street NW., 

Washington, DC 20503; by Fax: 202– 

395–5806 (this is not a toll-free 

number); or by email: OIRA_

submission@omb.eop.gov. Commenters 

are encouraged, but not required, to 

send a courtesy copy of any comments 

to the general addressee for this 

rulemaking. The OMB will consider all 

written comments that agency receives 

within 30 days of publication of this 

NPRM in the Federal Register. In order 

to help ensure appropriate 

consideration, comments should 

mention at least one of the control 

numbers mentioned in this rule. 

The OMB and the Department are 

particularly interested in comments 

that: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

The information collections in this 

rule may be summarized as follows: 

1. Title of Collection: Employer’s First 

Report of Injury or Occupational 

Disease, Employer’s Supplementary 

Report of Accident or Occupational 

Illness 

OMB Control Number: 1240–0003. 

Total Estimated Number of 

Responses: 28,829. 

Total Estimated Annual Time Burden: 

7,208 hours. 

Total Estimated Annual Other Costs 

Burden: $14,126. 

2. Title of Collection: Exchange of 

Documents and Information 

OMB Control Number: 1240–0004. 

Total Estimated Number of 

Responses: 5,000. 

Total Estimated Annual Time Burden: 

83 hours. 

Total Estimated Annual Other Costs 

Burden: $2,650. 

3. Title of Collection: Securing Financial 

Obligations Under the Longshore and 

Harbor Workers’ Compensation Act and 

Its Extensions 

OMB Control Number: 1240–0005. 

Total Estimated Number of 

Responses: 668. 

Total Estimated Annual Time Burden: 

454 hours. 

Total Estimated Annual Other Costs 

Burden: $344. 

4. Title of Collection: Regulations 

Governing the Administration of the 

Longshore and Harbor Workers’ 

Compensation Act 

OMB Control Number: 1240–0014. 

Total Estimated Number of 

Responses: 130,036. 

Total Estimated Annual Time Burden: 

44,955 hours. 

Total Estimated Annual Other Costs 

Burden: $46,866. 

5. Title of Collection: Request for 

Earnings Information 

OMB Control Number: 1240–0025. 

Total Estimated Number of 

Responses: 1,100. 

Total Estimated Annual Time Burden: 

275 hours. 

Total Estimated Annual Other Costs 

Burden: $528. 

6. Title of Collection: Application for 

Continuation of Death Benefit for 

Student 

OMB Control Number: 1240–0026. 

Total Estimated Number of 

Responses: 20. 

Total Estimated Annual Time Burden: 

10 hours. 

Total Estimated Annual Other Costs 

Burden: $10. 


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7. Title of Collection: Request for 

Examination and/or Treatment 

OMB Control Number: 1240–0029. 

Total Estimated Number of 

Responses: 96,000. 

Total Estimated Annual Time Burden: 

52,000 hours. 

Total Estimated Annual Other Costs 

Burden: $2,088,960. 

8. Title of Collection: Longshore and 

Harbor Workers’ Compensation Act PreHearing Statement 

OMB Control Number: 1240–0036. 

Total Estimated Number of 

Responses: 3,100. 

Total Estimated Annual Time Burden: 

527 hours. 

Total Estimated Annual Other Costs 

Burden: $1,612. 

9. Title of Collection: Certification of 

Funeral Expenses 

OMB Control Number: 1240–0040. 

Total Estimated Number of 

Responses: 75. 

Total Estimated Annual Time Burden: 

19 hours. 

Total Estimated Annual Other Costs 

Burden: $39. 

10. Title of Collection: Notice of Final 

Payment or Suspension of 

Compensation Benefits 

OMB Control Number: 1240–0041. 

Total Estimated Number of 

Responses: 21,000. 

Total Estimated Annual Time Burden: 

5,250 hours. 

Total Estimated Annual Other Costs 

Burden: $16,590. 

11. Title of Collection: Notice of 

Controversion of Right to Compensation 

OMB Control Number: 1240–0042. 

Total Estimated Number of 

Responses: 18,000. 

Total Estimated Annual Time Burden: 

4,500 hours. 

Total Estimated Annual Other Costs 

Burden: $9,013. 

12. Title of Collection: Payment of 

Compensation Without Award 

OMB Control Number: 1240–0043. 

Total Estimated Number of 

Responses: 16,800. 

Total Estimated Annual Time Burden: 

4,200 hours. 

Total Estimated Annual Other Costs 

Burden: $8,736. 

B. Executive Orders 12866 and 13563 

(Regulatory Planning and Review) 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. The 

Department has considered this 

proposed rule with these principles in 

mind and has concluded that the 

regulated community will greatly 

benefit from this regulation. 

This rule’s greatest benefit is that it 

provides the Longshore Program and the 

affected public the flexibility to make 

greater use of technology as it exists 

today and as it may be developed in the 

future. In some instances, the current 

regulations restrict the means of 

delivery or receipt when not required by 

the statute’s terms. See, e.g., 20 CFR 

702.215 (notice effected by ‘‘delivery by 

hand or mail’’); 20 CFR 702.104(b) (case 

transfers must be accomplished by 

‘‘registered or certified mail’’). 

Eliminating these restrictions where 

appropriate and consistent with the 

statute will broaden available 

transmission methods. From the 

Department’s view, this rule will allow 

easier and more efficient transmission of 

critical documents and information to 

OWCP, and allow OWCP to take 

advantage of more efficient means of 

delivery to parties. And the regulated 

community, which has asked the 

Department to allow more modern 

transmission methods to be used, will 

be able to use electronic technologies 

that they routinely employ when 

communicating with other entities. 

All currently used methods of 

submitting documents will remain 

available to OWCP, the parties, and the 

parties’ representatives. OWCP will 

continue to accept documents delivered 

by hand or routine mail and the parties 

may communicate with each other in 

the same way. Thus, a party or 

representative may continue to send and 

receive claim-related documents and 

information in the same manner as it 

currently does. But the rule will in 

many cases give the parties additional 

transmission options. 

In addition, allowing parties and 

representatives to waive their right to 

registered or certified mail service of 

compensation orders will expedite 

compensation payments. This is an 

important benefit to the proposed rule: 

Faster delivery of compensation orders 

via electronic transmission will result in 

more expeditious payment of benefits to 

injured workers. 

The Department has also considered 

whether the parties will realize any 

monetary benefits or incur any 

additional costs in light of this rule. The 

rule expands opportunities for parties 

and their representatives to submit and 

receive documents and does not require 

deviation from current practice. So the 

rule imposes no additional expense. To 

the contrary, the Department anticipates 

that the rule will provide some savings 

because an electronically transmitted 

document does not require postage or 

reproduction of multiple hard copies. 

Although difficult to quantify, the 

Department estimates that initial usage 

of electronic means of transmission will 

be approximately 13%, with increased 

usage possible in the future. 

Finally, because this is not a 

‘‘significant’’ rule within the meaning of 

Executive Order 12866, the Office of 

Management and Budget has not 

reviewed it prior to publication. 

C. Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995, 2 U.S.C. 1531 et 

seq., directs agencies to assess the 

effects of Federal Regulatory Actions on 

State, local, and tribal governments, and 

the private sector, ‘‘other than to the 

extent that such regulations incorporate 

requirements specifically set forth in 

law.’’ 2 U.S.C. 1531. For purposes of the 

Unfunded Mandates Reform Act, this 

proposed rule does not include any 

Federal mandate that may result in 

increased expenditures by State, local, 

tribal governments, or increased 

expenditures by the private sector of 

more than $100,000,000. 

D. Regulatory Flexibility Act and 

Executive Order 13272 (Proper 

Consideration of Small Entities in 

Agency Rulemaking) 

The Regulatory Flexibility Act of 

1980, as amended, 5 U.S.C. 601 et seq. 

(RFA), requires agencies to evaluate the 

potential impacts of their proposed and 

final rules on small businesses, small 

organizations, and small governmental 

jurisdictions and to prepare an analysis 

(called a ‘‘regulatory flexibility 

analysis’’) describing those impacts. See 

5 U.S.C. 601, 603–604. But if the rule is 

not expected to ‘‘have a significant 

economic impact on a substantial 

number of small entities[,]’’ the RFA 

allows an agency to so certify in lieu of 

preparing the analysis. See 5 U.S.C. 605. 

The Department has determined that 

a regulatory flexibility analysis under 

the RFA is not required for this 

rulemaking. Many Longshore employers 

and a handful of insurance carriers may 

be considered small entities within the 

meaning of the RFA. See generally 77 

FR 19471–72 (March 30, 2012); 69 FR 


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12222–23 (March 15, 2004). But this 

rule, if adopted, will not have a 

significant economic impact on these 

entities for several reasons. First, the 

revisions do not impose mandatory 

change on the employers. Instead, 

employers may choose to transmit 

documents and related information in 

the same manner as they do under the 

current rules. Second, although the 

proposed rules allow insurance 

companies to report the issuance of 

policies and endorsements 

electronically, these companies— 

virtually without exception—have been 

voluntarily reporting coverage in the 

manner the proposed rule allows for 

several years. No change in their 

conduct will be required. Third, because 

the proposed rule provides more 

flexibility for employers and insurers in 

transmitting documents and 

information, the Department anticipates 

that these entities could see some 

economic savings by having the freedom 

to choose the most cost-effective 

transmission method for their 

businesses. 

Based on these facts, the Department 

certifies that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

Thus, a regulatory flexibility analysis is 

not required. The Department invites 

comments from members of the public 

who believe the regulations will have a 

significant economic impact on a 

substantial number of small Longshore 

employers or insurers. The Department 

has provided the Chief Counsel for 

Advocacy of the Small Business 

Administration with a copy of this 

certification. See 5 U.S.C. 605. 

E. Executive Order 13132 (Federalism) 

The Department has reviewed this 

proposed rule in accordance with 

Executive Order 13132 regarding 

federalism, and has determined that it 

does not have ‘‘federalism 

implications.’’ E.O. 13132, 64 FR 43255 

(August 4, 1999). The proposed rule will 

not ‘‘have substantial direct effects on 

the States, on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government.’’ Id. 

F. Executive Order 12988 (Civil Justice 

Reform) 

This proposed rule meets the 

applicable standards in Sections 3(a) 

and 3(b)(2) of Executive Order 12988, 

Civil Justice Reform, to minimize 

litigation, eliminate ambiguity, and 

reduce burden. 

List of Subjects 

20 CFR Part 702 

Administrative practice and 

procedure, Claims, Health professions, 

Insurance companies, Longshore and 

harbor workers, Reporting and 

recordkeeping requirements, Workers’ 

compensation. 

20 CFR Part 703 

Insurance companies, Longshore and 

harbor workers, Reporting and 

recordkeeping requirements, Workers’ 

compensation. 

For the reasons set forth in the 

preamble, the Department of Labor 

proposes to amend 20 CFR parts 702 

and 703 as follows: 

PART 702—ADMINISTRATION AND 

PROCEDURE 

■ 1. The authority citation for part 702 

is revised to read as follows: 

Authority: 5 U.S.C. 301, and 8171 et seq.; 

33 U.S.C. 901 et seq.; 42 U.S.C. 1651 et seq.; 

43 U.S.C. 1333; Reorganization Plan No. 6 of 

1950, 15 FR 3174, 64 Stat. 1263; Secretary’s 

Order 10–2009, 74 FR 58834. 

■ 2. Add § 702.101 to subpart A to read 

as follows: 

§ 702.101 Exchange of documents and 

information. 

(a) Except as otherwise required by 

the regulations in this subchapter, all 

documents and information sent to 

OWCP under this subchapter must be 

submitted— 

(1) In hard copy by postal mail, 

commercial delivery service (such as 

Federal Express or United Parcel 

Service), or hand delivery; 

(2) Electronically through an OWCPauthorized system; or 

(3) As otherwise allowed by OWCP. 

(b) Except as otherwise required by 

the regulations in this subchapter, all 

documents and information sent under 

this subchapter by OWCP to parties and 

their representatives or from any party 

or representative to another party or 

representative must be sent— 

(1) In hard copy by postal mail, 

commercial delivery service (such as 

Federal Express or United Parcel 

Service), or hand delivery; 

(2) Electronically by a reliable 

electronic method if the receiving party 

or representative agrees in writing to 

receive documents and information by 

that method; or 

(3) Electronically through an OWCPauthorized system that provides service 

of documents on the parties and their 

representatives. 

(c) Reliable electronic methods for 

delivering documents include, but are 

not limited to, email, facsimile and Web 

portal. 

(d) Any party or representative may 

revoke his or her agreement to receive 

documents and information 

electronically by giving written notice to 

OWCP, the party, or the representative 

with whom he or she had agreed to 

receive documents and information 

electronically, as appropriate. 

(e) The provisions in paragraphs (a) 

through (d) of this section apply when 

parties are directed by the regulations in 

this subchapter to: Advise; apply; 

approve; authorize; demand; file; 

forward; furnish; give; give notice; 

inform; issue; make; notice, notify; 

provide; publish; receive; recommend; 

refer; release; report; request; respond; 

return; send; serve; service; submit; or 

transmit. 

(f) Any reference in this subchapter to 

an application, copy, filing, form, letter, 

written notice, or written request 

includes both hard-copy and electronic 

documents. 

(g) Any requirement in this 

subchapter that a document or 

information be submitted in writing, or 

that it be signed, executed, or certified 

does not preclude its submission or 

exchange electronically. 

(h) Any reference in this subchapter 

to transmitting information to an 

entity’s address may include that 

entity’s electronic address or electronic 

portal. 

(i) Any requirement in this subchapter 

that a document or information— 

(1) Be sent to a specific district 

director means that the document or 

information should be sent to the 

physical or electronic address provided 

by OWCP for that district director; and 

(2) Be filed by a district director in his 

or her office means that the document 

or information may be filed in a 

physical or electronic location specified 

by OWCP for that district director. 

■ 3. Revise § 702.102 to read as follows: 

§ 702.102 Establishment and modification 

of compensation districts, establishment of 

suboffices and jurisdictional areas. 

(a) The Director has, pursuant to 

section 39(b) of the Longshore and 

Harbor Workers’ Compensation Act, 33 

U.S.C. 939(b), established compensation 

districts as required for improved 

administration or as otherwise 

determined by the Director (see 51 FR 

4282, Feb. 3, 1986). The boundaries of 

the compensation districts may be 

modified at any time, and the Director 

will notify all interested parties directly 

of the modifications. 

(b) As administrative exigencies from 

time to time may require, the Director 

may, by administrative order, establish 


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special areas outside the continental 

United States, Alaska, and Hawaii, or 

change or modify any areas so 

established, notwithstanding their 

inclusion within an established 

compensation district. Such areas will 

be designated ‘‘jurisdictional areas.’’ 

The Director will also designate which 

of his district directors will be in charge 

thereof. 

(c) To further aid in the efficient 

administration of the OWCP, the 

Director may from time to time establish 

suboffices within compensation districts 

or jurisdictional areas, and will 

designate a person to be in charge 

thereof. 

■ 4. Revise § 702.103 to read as follows: 

§ 702.103 Effect of establishment of 

suboffices and jurisdictional areas. 

Whenever the Director establishes a 

suboffice or jurisdictional area, those 

reports, records, or other documents 

with respect to processing of claims that 

are required to be filed with the district 

director of the compensation district in 

which the injury or death occurred, may 

instead be required to be filed with the 

suboffice, or office established for the 

jurisdictional area. 

■ 5. Revise § 702.104(b) to read as 

follows: 

§ 702.104 Transfer of individual case file. 

* * * * * 

(b) The district director making the 

transfer may by letter or memorandum 

to the district director to whom the case 

is transferred give advice, comments, 

suggestions, or directions if appropriate 

to the particular case. All interested 

parties will be advised of the transfer. 

■ 6. In § 702.174, revise the introductory 

text of paragraph (a), paragraph (b), and 

the introductory text of paragraph (d) to 

read as follows: 

§ 702.174 Exemptions; necessary 

information. 

(a) Application. Before any facility is 

exempt from coverage under the Act, 

the facility must apply for and receive 

a certificate of exemption from the 

Director or his/her designee. The 

application must be made by the owner 

of the facility; where the owner is a 

partnership it must be made by a 

partner and where a corporation by an 

officer of the corporation or the manager 

in charge of the facility for which an 

exemption is sought. The information 

submitted must include the following: 

* * * * * 

(b) Action by the Director. The 

Director or his/her designee must 

review the application within thirty (30) 

days of its receipt. 

(1) Where the application is complete 

and shows that all requirements under 

§ 702.173 are met, the Director must 

promptly notify the employer that 

certification has been approved and will 

be effective on the date specified. The 

employer is required to post notice of 

the exemption at a conspicuous 

location. 

(2) Where the application is 

incomplete or does not substantiate that 

all requirements of section 3(d) of the 

Act, 33 U.S.C. 903(d), have been met, or 

evidence shows the facility is not 

eligible for exemption, the Director must 

promptly notify the employer by issuing 

a letter which details the reasons for the 

deficiency or the rejection. The 

employer/applicant may reapply for 

certification, correcting deficiencies 

and/or responding to the reasons for the 

Director’s denial. The Director or his/

her designee must issue a new decision 

within a reasonable time of 

reapplication following denial. Such 

action will be the final administrative 

review and is not appealable to the 

Administrative Law Judge or the 

Benefits Review Board. 

* * * * * 

(d) Action by the employer. 

Immediately upon receipt of the 

certificate of exemption from coverage 

under the Act the employer must post: 

* * * * * 

■ 7. Revise § 702.203 to read as follows: 

§ 702.203 Employer’s report; how given. 

(a) The employer must file its report 

of injury with the district director. 

(b) If the employer sends its report of 

injury by U.S. postal mail or commercial 

delivery service, the report will be 

considered filed on the date that the 

employer mails the document or gives it 

to the commercial delivery service. If 

the employer sends its report of injury 

by a permissible electronic method, the 

report will be considered filed on the 

date that the employer completes all 

steps necessary for the transmission. 

■ 8. Revise § 702.215 to read as follows: 

§ 702.215 Notice; how given. 

Notice must be effected by delivering 

it to the individual designated to receive 

such notices at the physical or 

electronic address designated by the 

employer. Notice may be given to the 

district director by submitting a copy of 

the form supplied by OWCP to the 

district director, or orally in person or 

by telephone. 

■ 9. Revise § 702.224 to read as follows: 

§ 702.224 Claims; notification of employer 

of filing by employee. 

Within 10 days after the filing of a 

claim for compensation for injury or 

death under the Act, the district director 

must give written notice thereof to the 

employer or carrier. 

■ 10. Revise § 702.234 to read as 

follows: 

§ 702.234 Report by employer of 

commencement and suspension of 

payments. 

Immediately upon making the first 

payment of compensation, and upon the 

suspension of payments once begun, the 

employer must notify the district 

director who is administering the claim 

of the commencement or suspension of 

payments, as the case may be. 

■ 11. In § 702.243, revise paragraphs (a) 

and (b), the first two sentences of 

paragraph (c), the introductory text of 

paragraph (f), and paragraph (g) to read 

as follows: 

§ 702.243 Settlement application; how 

submitted, how approved, how 

disapproved, criteria. 

(a) When the parties to a claim for 

compensation, including survivor 

benefits and medical benefits, agree to a 

settlement they must submit a complete 

application to the adjudicator. The 

application must contain all the 

information outlined in § 702.242 and 

must be sent by certified mail with 

return receipt requested, commercial 

delivery service with tracking capability 

that provides reliable proof of delivery 

to the adjudicator, or electronically 

through an OWCP-authorized system. 

Failure to submit a complete application 

will toll the thirty day period mentioned 

in section 8(i) of the Act, 33 U.S.C. 

908(i), until a complete application is 

received. 

(b) The adjudicator must consider the 

settlement application within thirty 

days and either approve or disapprove 

the application. The liability of an 

employer/insurance carrier is not 

discharged until the settlement is 

specifically approved by a 

compensation order issued by the 

adjudicator. However, if the parties are 

represented by counsel, the settlement 

will be deemed approved unless 

specifically disapproved within thirty 

days after receipt of a complete 

application. This thirty day period does 

not begin until all the information 

described in § 702.242 has been 

submitted. The adjudicator will 

examine the settlement application 

within thirty days and must 

immediately serve on all parties notice 

of any deficiency. This notice must also 

indicate that the thirty day period will 

not commence until the deficiency is 

corrected. 

(c) If the adjudicator disapproves a 

settlement application, the adjudicator 

must serve on all parties a written 


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Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 12969 

statement or order containing the 

reasons for disapproval. This statement 

must be served within thirty days of 

receipt of a complete application (as 

described in § 702.242) if the parties are 

represented by counsel. * * * 

* * * * * 

(f) When presented with a settlement, 

the adjudicator must review the 

application and determine whether, 

considering all of the circumstances, 

including, where appropriate, the 

probability of success if the case were 

formally litigated, the amount is 

adequate. The criteria for determining 

the adequacy of the settlement 

application will include, but not be 

limited to: 

* * * * * 

(g) In cases being paid pursuant to a 

final compensation order, where no 

substantive issues are in dispute, a 

settlement amount which does not equal 

the present value of future 

compensation payments commuted, 

computed at the discount rate specified 

below, must be considered inadequate 

unless the parties to the settlement 

show that the amount is adequate. The 

probability of the death of the 

beneficiary before the expiration of the 

period during which he or she is 

entitled to compensation will be 

determined according to the most 

current United States Life Table, as 

developed by the United States 

Department of Health and Human 

Services, which will be updated from 

time to time. The discount rate will be 

equal to the coupon issue yield 

equivalent (as determined by the 

Secretary of the Treasury) of the average 

accepted auction price for the last 

auction of 52 weeks U.S. Treasury Bills 

settled immediately prior to the date of 

the submission of the settlement 

application. 

■ 12. Revise § 702.251 to read as 

follows: 

§ 702.251 Employer’s controversion of the 

right to compensation. 

Where the employer controverts the 

right to compensation after notice or 

knowledge of the injury or death, or 

after receipt of a written claim, he must 

give notice thereof, stating the reasons 

for controverting the right to 

compensation, using the form 

prescribed by the Director. Such notice, 

or answer to the claim, must be filed 

with the district director within 14 days 

from the date the employer receives 

notice or has knowledge of the injury or 

death. A copy of the notice must also be 

given to the claimant. 

■ 13. Revise § 702.261 to read as 

follows: 

§ 702.261 Claimant’s contest of actions 

taken by employer or carrier with respect to 

the claim. 

Where the claimant contests an action 

by the employer or carrier reducing, 

suspending, or terminating benefits, 

including medical care, he should 

immediately notify the office of the 

district director who is administering 

the claim and set forth the facts 

pertinent to his complaint. 

■ 14. In § 702.272, revise the last two 

sentences of paragraph (a) and 

paragraph (b) to read as follows: 

§ 702.272 Informal recommendation by 

district director. 

(a) * * * If the district director 

determines that no violation occurred 

he must notify the parties of his findings 

and the reasons for recommending that 

the complaint be denied. If the 

employer and employee accept the 

district director’s recommendation, 

within 10 days it will be incorporated 

in an order, to be filed and served in 

accordance with § 702.349. 

(b) If the parties do not agree to the 

recommendation, the district director 

must, within 10 days after receipt of the 

rejection, prepare a memorandum 

summarizing the disagreement, send a 

copy to all interested parties, and within 

14 days thereafter, refer the case to the 

Office of the Chief Administrative Law 

Judge for hearing pursuant to § 702.317. 

■ 15. In § 702.281, revise the 

introductory text of paragraph (a) and 

the last sentence of paragraph (b) to read 

as follows: 

§ 702.281 Third party action. 

(a) Every person claiming benefits 

under this Act (or the representative) 

must promptly notify the employer and 

the district director when: 

* * * * * 

(b) * * * The approval must be on a 

form provided by OWCP and must be 

filed, within thirty days after the 

settlement is entered into, with the 

district director who is administering 

the claim. 

■ 16. Revise § 702.315 to read as 

follows: 

§ 702.315 Conclusion of conference; 

agreement on all matters with respect to the 

claim. 

(a) Following an informal conference 

at which agreement is reached on all 

issues, the district director must (within 

10 days after conclusion of the 

conference), embody the agreement in a 

memorandum or within 30 days issue a 

formal compensation order, to be filed 

and served in accordance with 

§ 702.349. If either party requests that a 

formal compensation order be issued, 

the district director must, within 30 

days of such request, prepare, file, and 

serve such order in accordance with 

§ 702.349. Where the problem was of 

such nature that it was resolved by 

telephone discussion or by exchange of 

written correspondence, the district 

director must prepare a memorandum or 

order setting forth the terms agreed 

upon and notify the parties either by 

telephone or in writing, as appropriate. 

In either instance, when the employer or 

carrier has agreed to pay, reinstate or 

increase monetary compensation 

benefits, or to restore or appropriately 

change medical care benefits, such 

action must be commenced immediately 

upon becoming aware of the agreement, 

and without awaiting receipt of the 

memorandum or the formal 

compensation order. 

(b) Where there are several 

conferences or discussions, the 

provisions of paragraph (a) of this 

section do not apply until the last 

conference. The district director must, 

however, prepare and place in his 

administrative file a short, succinct 

memorandum of each preceding 

conference or discussion. 

■ 17. Revise § 702.317 to read as 

follows: 

§ 702.317 Preparation and transfer of the 

case for hearing. 

A case is prepared for transfer in the 

following manner: 

(a) The district director will furnish 

each of the parties or their 

representatives with a copy of a 

prehearing statement form. 

(b) Each party must, within 21 days 

after receipt of such form, complete it 

and return it to the district director and 

serve copies on all other parties. 

Extensions of time for good cause may 

be granted by the district director. 

(c) Upon receipt of the completed 

forms, the district director, after 

checking them for completeness and 

after any further conferences that, in his 

or her opinion, are warranted, will 

transmit them to the Office of the Chief 

Administrative Law Judge by letter of 

transmittal together with all available 

evidence which the parties intend to 

submit at the hearings (exclusive of Xrays, slides and other materials not 

suitable for transmission which may be 

offered into evidence at the time of the 

hearing); the materials transmitted must 

not include any recommendations 

expressed or memoranda prepared by 

the district director pursuant to 

§ 702.316. 

(d) If the completed pre-hearing 

statement forms raise new or additional 

issues not previously considered by the 

district director or indicate that material 


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evidence will be submitted that could 

reasonably have been made available to 

the district director before he or she 

prepared the last memorandum of 

conference, the district director will 

transfer the case to the Office of the 

Chief Administrative Law Judge only 

after having considered such issues or 

evaluated such evidence or both and 

having issued an additional 

memorandum of conference in 

conformance with § 702.316. 

(e) If a party fails to complete or 

return his or her pre-hearing statement 

form within the time allowed, the 

district director may, at his or her 

discretion, transmit the case without 

that party’s form. However, such 

transmittal must include a statement 

from the district director setting forth 

the circumstances causing the failure to 

include the form, and such party’s 

failure to submit a pre-hearing statement 

form may, subject to rebuttal at the 

formal hearing, be considered by the 

administrative law judge, to the extent 

intransigence is relevant, in subsequent 

rulings on motions which may be made 

in the course of the formal hearing. 

■ 18. Revise § 702.319 to read as 

follows: 

§ 702.319 Obtaining documents from the 

administrative file for reintroduction at 

formal hearings. 

Whenever any party considers any 

document in the administrative file 

essential to any further proceedings 

under the Act, it is the responsibility of 

such party to obtain such document 

from the district director and 

reintroduce it for the record before the 

administrative law judge. The type of 

document that may be obtained will be 

limited to documents previously 

submitted to the district director, 

including documents or forms with 

respect to notices, claims, 

controversions, contests, progress 

reports, medical services or supplies, 

etc. The work products of the district 

director or his staff will not be subject 

to retrieval. The procedure for obtaining 

documents will be for the requesting 

party to inform the district director in 

writing of the documents he wishes to 

obtain, specifying them with 

particularity. Upon receipt, the district 

director must promptly forward a copy 

of the requested materials to the 

requesting party. A copy of the letter of 

request and a statement of whether it 

has been satisfied must be kept in the 

case file. 

■ 19. In § 702.321, revise paragraphs 

(a)(1), (b), and (c) to read as follows: 

§ 702.321 Procedures for determining 

applicability of section 8(f) of the Act. 

(a) Application: Filing, service, 

contents. (1) An employer or insurance 

carrier which seeks to invoke the 

provisions of section 8(f) of the Act 

must request limitation of its liability 

and file a fully documented application 

with the district director. A fully 

documented application must contain a 

specific description of the pre-existing 

condition relied upon as constituting an 

existing permanent partial disability 

and the reasons for believing that the 

claimant’s permanent disability after the 

injury would be less were it not for the 

pre-existing permanent partial disability 

or that the death would not have ensued 

but for that disability. These reasons 

must be supported by medical evidence 

as specified in this paragraph. The 

application must also contain the basis 

for the assertion that the pre-existing 

condition relied upon was manifest in 

the employer and documentary medical 

evidence relied upon in support of the 

request for section 8(f) relief. This 

medical evidence must include, but not 

be limited to, a current medical report 

establishing the extent of all 

impairments and the date of maximum 

medical improvement. If the claimant 

has already reached maximum medical 

improvement, a report prepared at that 

time will satisfy the requirement for a 

current medical report. If the current 

disability is total, the medical report 

must explain why the disability is not 

due solely to the second injury. If the 

current disability is partial, the medical 

report must explain why the disability 

is not due solely to the second injury 

and why the resulting disability is 

materially and substantially greater than 

that which would have resulted from 

the subsequent injury alone. If the 

injury is loss of hearing, the pre-existing 

hearing loss must be documented by an 

audiogram which complies with the 

requirements of § 702.441. If the claim 

is for survivor’s benefits, the medical 

report must establish that the death was 

not due solely to the second injury. Any 

other evidence considered necessary for 

consideration of the request for section 

8(f) relief must be submitted when 

requested by the district director or 

Director. 

* * * * * 

(b) Application: Time for filing. (1) A 

request for section 8(f) relief should be 

made as soon as the permanency of the 

claimant’s condition becomes known or 

is an issue in dispute. This could be 

when benefits are first paid for 

permanent disability, or at an informal 

conference held to discuss the 

permanency of the claimant’s condition. 

Where the claim is for death benefits, 

the request should be made as soon as 

possible after the date of death. Along 

with the request for section 8(f) relief, 

the applicant must also submit all the 

supporting documentation required by 

this section, described in paragraph (a) 

of this section. Where possible, this 

documentation should accompany the 

request, but may be submitted 

separately, in which case the district 

director must, at the time of the request, 

fix a date for submission of the fully 

documented application. The date must 

be fixed as follows: 

(i) Where notice is given to all parties 

that permanency will be an issue at an 

informal conference, the fully 

documented application must be 

submitted at or before the conference. 

For these purposes, notice means when 

the issue of permanency is noted on the 

form LS–141, Notice of Informal 

Conference. All parties are required to 

list issues reasonably anticipated to be 

discussed at the conference when the 

initial request for a conference is made 

and to notify all parties of additional 

issues which arise during the period 

before the conference is actually held. 

(ii) Where the issue of permanency is 

first raised at the informal conference 

and could not have reasonably been 

anticipated by the parties prior to the 

conference, the district director must 

adjourn the conference and establish the 

date by which the fully documented 

application must be submitted and so 

notify the employer/carrier. The date 

will be set by the district director after 

reviewing the circumstances of the case. 

(2) At the request of the employer or 

insurance carrier, and for good cause, 

the district director, at his/her 

discretion, may grant an extension of 

the date for submission of the fully 

documented application. In fixing the 

date for submission of the application 

under circumstances other than 

described above or in considering any 

request for an extension of the date for 

submitting the application, the district 

director must consider all the 

circumstances of the case, including but 

not limited to: Whether the claimant is 

being paid compensation and the 

hardship to the claimant of delaying 

referral of the case to the Office of 

Administrative Law Judges (OALJ); the 

complexity of the issues and the 

availability of medical and other 

evidence to the employer; the length of 

time the employer was or should have 

been aware that permanency is an issue; 

and, the reasons listed in support of the 

request. If the employer/carrier 

requested a specific date, the reasons for 

selection of that date will also be 

considered. Neither the date selected for 


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submission of the fully documented 

application nor any extension therefrom 

can go beyond the date the case is 

referred to the OALJ for formal hearing. 

(3) Where the claimant’s condition 

has not reached maximum medical 

improvement and no claim for 

permanency is raised by the date the 

case is referred to the OALJ, an 

application need not be submitted to the 

district director to preserve the 

employer’s right to later seek relief 

under section 8(f) of the Act. In all other 

cases, failure to submit a fully 

documented application by the date 

established by the district director will 

be an absolute defense to the liability of 

the special fund. This defense is an 

affirmative defense which must be 

raised and pleaded by the Director. The 

absolute defense will not be raised 

where permanency was not an issue 

before the district director. In all other 

cases, where permanency has been 

raised, the failure of an employer to 

submit a timely and fully documented 

application for section 8(f) relief will 

not prevent the district director, at his/ 

her discretion, from considering the 

claim for compensation and 

transmitting the case for formal hearing. 

The failure of an employer to present a 

timely and fully documented 

application for section 8(f) relief may be 

excused only where the employer could 

not have reasonably anticipated the 

liability of the special fund prior to the 

consideration of the claim by the district 

director. Relief under section 8(f) is not 

available to an employer who fails to 

comply with section 32(a) of the Act, 33 

U.S.C. 932(a). 

(c) Application: Approval, 

disapproval. If all the evidence required 

by paragraph (a) of this section was 

submitted with the application for 

section 8(f) relief and the facts warrant 

relief under this section, the district 

director must award such relief after 

concurrence by the Associate Director, 

DLHWC, or his or her designee. If the 

district director or the Associate 

Director or his or her designee finds that 

the facts do not warrant relief under 

section 8(f) the district director must 

advise the employer of the grounds for 

the denial. The application for section 

8(f) relief may then be considered by an 

administrative law judge. When a case 

is transmitted to the Office of 

Administrative Law Judges the district 

director must also attach a copy of the 

application for section 8(f) relief 

submitted by the employer, and 

notwithstanding § 702.317(c), the 

district director’s denial of the 

application. 

* * * * * 

■ 20. Revise § 702.349 to read as 

follows: 

§ 702.349 Formal hearings; filing and 

mailing of compensation orders; waiver of 

service; disposition of transcripts. 

(a) An administrative law judge must, 

within 20 days after the official 

termination of the hearing, deliver by 

mail, or otherwise, to the district 

director that administered the claim, the 

transcript of the hearing, other 

documents or pleadings filed with him 

with respect to the claim, and his signed 

compensation order. Upon receipt 

thereof, the district director, being the 

official custodian of all records with 

respect to claims he administers, must 

formally date and file the transcript, 

pleadings, and compensation order in 

his office. Such filing must be 

accomplished by the close of business 

on the next succeeding working day, 

and the district director must, on the 

same day as the filing was 

accomplished, serve a copy of the 

compensation order on the parties and 

on the representatives of the parties, if 

any. Service on the parties and their 

representatives must be made by 

certified mail unless a party has 

previously waived service by this 

method under paragraph (b) of this 

section. 

(b) All parties and their 

representatives are entitled to be served 

with compensation orders via registered 

or certified mail. Parties and their 

representatives may waive this right and 

elect to be served with compensation 

orders electronically by filing the 

appropriate waiver form with the 

district director responsible for 

administering the claim. To waive 

service by registered or certified mail, 

employers, insurance carriers, and their 

representatives must file form LS–801 

(Waiver of Service by Registered or 

Certified Mail for Employers and/or 

Insurance Carriers), and claimants and 

their representatives must file form LS– 

802 (Waiver of Service by Registered or 

Certified Mail for Claimants and/or 

Authorized Representatives). A 

signature on a waiver form represents a 

knowing and voluntary waiver of that 

party’s or representative’s right to 

receive compensation orders via 

registered or certified mail. 

(1) Waiving parties and 

representatives must provide a valid 

electronic address on the waiver form. 

(2) Parties and representatives must 

submit a separate waiver form for each 

case in which they intend to waive the 

right to certified or registered mail 

service. 

(3) A representative may not sign a 

waiver form on a party’s behalf. 

(4) All compensation orders issued in 

a claim after receipt of the waiver form 

will be sent to the electronic address 

provided on the waiver form. Any 

changes to the address must be made by 

submitting another waiver form. 

Individuals may revoke their service 

waiver at any time by submitting a new 

waiver form that specifies that the 

service waiver is being revoked. 

(5) If it appears that service in the 

manner selected by the individual has 

not been effective, the district director 

will serve the individual by certified 

mail. 

■ 21. Revise § 702.372 to read as 

follows: 

§ 702.372 Supplementary compensation 

orders. 

(a) In any case in which the employer 

or insurance carrier is in default in the 

payment of compensation due under 

any award of compensation, for a period 

of 30 days after the compensation is due 

and payable, the person to whom such 

compensation is payable may, within 1 

year after such default, apply in writing 

to the district director for a 

supplementary compensation order 

declaring the amount of the default. 

Upon receipt of such application, the 

district director will institute 

proceedings with respect to such 

application as if such application were 

an original claim for compensation, and 

the matter will be disposed of as 

provided for in § 702.315, or if 

agreement on the issue is not reached, 

then as in §§ 702.316 through 702.319. 

(b) If, after disposition of the 

application as provided for in paragraph 

(a) of this section, a supplementary 

compensation order is entered declaring 

the amount of the default, which 

amount may be the whole of the award 

notwithstanding that only one or more 

installments is in default, a copy of such 

supplementary order must be filed and 

served in accordance with § 702.349. 

Thereafter, the applicant may obtain 

and file with the clerk of the Federal 

district court for the judicial district 

where the injury occurred or the district 

in which the employer has his principal 

place of business or maintains an office, 

a certified copy of said order and may 

seek enforcement thereof as provided 

for by section 18 of the Act, 33 U.S.C. 

918. 

■ 22. In § 702.432, revise the 

introductory text of paragraph (b), and 

paragraphs (b)(6) and (e) to read as 

follows: 

§ 702.432 Debarment process. 

* * * * * 

(b) Pertaining to health care providers 

and claims representatives. If after 


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12972 Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 

appropriate investigation the Director 

determines that proceedings should be 

initiated, written notice thereof must be 

provided to the physician, health care 

provider or claims representative. 

Notice must contain the following: 

* * * * * 

(6) The name and address of the 

district director who will be responsible 

for receiving the answer from the 

physician, health care provider or 

claims representative. 

* * * * * 

(e) The Director must issue a decision 

in writing, and must send a copy of the 

decision to the physician, health care 

provider or claims representative. The 

decision must advise the physician, 

health care provider or claims 

representative of the right to request, 

within thirty (30) days of the date of an 

adverse decision, a formal hearing 

before an administrative law judge 

under the procedures set forth herein. 

The filing of such a request for hearing 

within the time specified will operate to 

stay the effectiveness of the decision to 

debar. 

■ 23. In § 702.433, revise paragraphs (a), 

(b), (e) and (f) to read as follows: 

§ 702.433 Requests for hearing. 

(a) A request for hearing must be sent 

to the district director and contain a 

concise notice of the issues on which 

the physician, health care provider or 

claims representative desires to give 

evidence at the hearing with 

identification of witnesses and 

documents to be submitted at the 

hearing. 

(b) If a request for hearing is timely 

received by the district director, the 

matter must be referred to the Chief 

Administrative Law Judge who must 

assign it for hearing with the assigned 

administrative law judge issuing a 

notice of hearing for the conduct of the 

hearing. A copy of the hearing notice 

must be served on the physician, health 

care provider or claims representative. 

* * * * * 

(e) The administrative law judge will 

issue a recommended decision after the 

termination of the hearing. The 

recommended decision must contain 

appropriate findings, conclusions and a 

recommended order and be forwarded, 

together with the record of the hearing, 

to the Administrative Review Board for 

a final decision. The recommended 

decision must be served upon all parties 

to the proceeding. 

(f) Based upon a review of the record 

and the recommended decision of the 

administrative law judge, the 

Administrative Review Board will issue 

a final decision. 

PART 703—INSURANCE 

REGULATIONS 

■ 24. The authority citation for part 703 

is revised to read as follows: 

Authority: 5 U.S.C. 301, and 8171 et seq.; 

33 U.S.C. 901 et seq.; 42 U.S.C. 1651 et seq.; 

43 U.S.C. 1333; Reorganization Plan No. 6 of 

1950, 15 FR 3174, 64 Stat. 1263; Secretary’s 

Order 10–2009, 74 FR 58834. 

■ 25. In § 703.2, revise the introductory 

text of paragraph (a) to read as follows: 

§ 703.2 Forms. 

(a) Any information required by the 

regulations in this part to be submitted 

to OWCP must be submitted on forms 

the Director authorizes from time to 

time for such purpose. Persons 

submitting forms may not modify the 

forms or use substitute forms without 

OWCP’s approval. These forms must be 

submitted, sent, or filed in the manner 

prescribed by OWCP. 

* * * * * 

■ 26. Revise § 703.113 to read as 

follows: 

§ 703.113 Marine insurance contracts. 

A longshoremen’s policy, or the 

longshoremen’s endorsement provided 

for by § 703.109 for attachment to a 

marine policy, may specify the 

particular vessel or vessels in respect of 

which the policy applies and the 

address of the employer at the home 

port thereof. The report of the issuance 

of a policy or endorsement required by 

§ 703.116 must be made to DLHWC and 

must show the name and address of the 

owner as well as the name or names of 

such vessel or vessels. 

■ 27. Revise § 703.114 to read as 

follows: 

§ 703.114 Notice of cancellation. 

Cancellation of a contract or policy of 

insurance issued under authority of the 

Act will not become effective otherwise 

than as provided by 33 U.S.C. 936(b); 30 

days before such cancellation is 

intended to be effective, notice of a 

proposed cancellation must be given to 

the district director and the employer in 

accordance with the provisions of 33 

U.S.C. 912(c). The notice requirements 

of 33 U.S.C. 912(c) will be considered 

met when: 

(a) Notice to the district director is 

given by a method specified in 

§ 702.101(a) of this chapter or in the 

same manner that reports of issuance of 

policies and endorsements are reported 

under § 703.116; and 

(b) Notice to the employer is given by 

a method specified in § 702.101(b) of 

this chapter. 

■ 28. Revise § 703.116 to read as 

follows: 

§ 703.116 Report by carrier of issuance of 

policy or endorsement. 

Each carrier must report to DLHWC 

each policy and endorsement issued by 

it to an employer whose employees are 

engaging in work subject to the Act and 

its extensions. Such reports must be 

made in a manner prescribed by OWCP. 

Reports made to an OWCP-authorized 

intermediary, such as an industry data 

collection organization, satisfy this 

reporting requirement. 

■ 29. Revise § 703.117 to read as 

follows: 

§ 703.117 Report; by whom sent. 

The report of issuance of a policy and 

endorsement provided for in § 703.116 

or notice of cancellation provided for in 

§ 703.114 must be sent by the home 

office of the carrier, except that any 

carrier may authorize its agency or 

agencies in any compensation district to 

make such reports, provided the carrier 

notifies DLHWC of the agencies so duly 

authorized. 

■ 30. Revise § 703.118 to read as 

follows: 

§ 703.118 Agreement to be bound by 

report. 

Every applicant for the authority to 

write insurance under the provisions of 

this Act, will be deemed to have 

included in its application an agreement 

that the acceptance by DLHWC of a 

report of insurance, as provided for by 

§ 703.116, binds the carrier to full 

liability for the obligations under this 

Act of the employer named in said 

report, and every certificate of authority 

to write insurance under this Act will be 

deemed to have been issued by the 

Office upon consideration of the 

carrier’s agreement to become so bound. 

It will be no defense to this agreement 

that the carrier failed or delayed to issue 

the policy to the employer covered by 

this report. 

§ 703.119 [Removed and Reserved] 

■ 31. Remove and reserve § 703.119. 

■ 32. Revise § 703.120 to read as 

follows: 

§ 703.120 Name of one employer only in 

each report. 

For policies that are reported to 

DLHWC on Form LS–570 (Carrier’s 

Report of Issuance of Policy), a separate 

report of the issuance of a policy and 

endorsement, provided for by § 703.116, 

must be made for each employer 

covered by a policy. If a policy is issued 

insuring more than one employer, a 

separate form LS–570 for each employer 

so covered must be sent to DLHWC in 

the manner described in § 703.116, with 

the name of only one employer on each 

form. 


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Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Proposed Rules 12973 

§ 703.502 [Removed and Reserved] 

■ 33. Remove and reserve § 703.502. 

Signed at Washington, DC, this 25th day of 

February, 2015. 

Leonard J. Howie III, 

Director, Office of Workers’ Compensation 

Programs. 

[FR Doc. 2015–05100 Filed 3–11–15; 8:45 am] 

BILLING CODE 4510–CR–P 


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