[Federal Register Volume 80, Number 48 (Thursday, March 12, 2015)]
[Rules and Regulations]
[Pages 12917-12933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-05103]


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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: Direct final rule; request for comments.

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SUMMARY: Parties to claims arising under the Longshore and Harbor 
Workers' Compensation Act and its extensions (LHWCA or Act) and 
entities required to

[[Page 12918]]

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 rule broadens the acceptable methods 
by which claimants, employers, and insurers can communicate with OWCP 
and each other.

DATES: This direct final rule is effective June 10, 2015 without 
further action unless OWCP receives significant adverse comment to this 
rule by midnight Eastern Standard Time on May 11, 2015. If OWCP 
receives significant adverse comment, it will publish a timely 
withdrawal of the final rule in the Federal Register.

ADDRESSES: You may submit written comments, identified by RIN number 
1240-AA09, by any of the following methods.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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.
    <bullet> 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. Direct Final Rule Published Concurrently With Companion Proposed 
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 non-controversial.
    OWCP has determined that this rule, which modifies the existing 
regulations to facilitate the exchange of documents 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.
    OWCP is also publishing a companion notice of proposed rulemaking 
in the ``Proposed Rules'' section of today's Federal Register to 
expedite notice-and-comment rulemaking in the event OWCP receives 
significant adverse comment and withdraws this direct final rule. The 
proposed and direct final rules are substantively identical, and their 
respective comment periods run concurrently. OWCP will treat comments 
received on the companion proposed rule as comments regarding the 
direct final rule and vice versa. Thus, if OWCP receives significant 
adverse comment on either this direct final rule or the companion 
proposed rule, OWCP will publish a Federal Register notice withdrawing 
this direct final rule and will proceed with the proposed rule. If no 
significant adverse comment is received, this direct final rule will 
become effective June 10, 2015.
    For purposes of this 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 this 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 this 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 the 
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, Public Law 70-419 
(formerly codified at 36 D.C. 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

[[Page 12919]]

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 web-based 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. This 
rule thus revises 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 revisions are procedural in nature, this rule applies 
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). This rule 
falls well 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. These rules are consistent with and further 
the purposes of GPEA and E-SIGN.

IV. New and Revised Rules

A. General Provisions

    This rule makes 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, this rule removes the imprecise term 
``shall'' throughout those sections it amends and substitutes ``must,'' 
``must not,'' ``will,'' or other situation-appropriate terms. These 
changes are designed to make the regulations clearer and more user-
friendly. 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, this rule ceases 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 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

[[Page 12920]]

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 non-exhaustive 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
    Current Sec.  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. Revised Sec.  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 Sec.  702.103 explains that the Director may require 
claims-related materials to be filed in suboffices. Revised Sec.  
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 Sec.  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, revised Sec.  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 Sec.  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, revised Sec.  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 
revised rule also includes a technical amendment to Sec.  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 Sec.  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).
    Revised Sec.  702.203 alters the current rule in two ways. First, 
revised paragraph (a) eliminates the requirement that employers provide 
an original and a copy of their injury

[[Page 12921]]

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, revised 
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), revised 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 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 Sec.  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. Revised Sec.  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 revised 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 revised 
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 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 revised 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 Sec.  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). Revised Sec.  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 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 revised rule is also consistent with the statute.
20 CFR 702.234 Report by Employer of Commencement and Suspension of 
Payments
    Current Sec.  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 
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, revised Sec.  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 Sec.  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 revised rule modifies this 
subsection to explicitly allow parties to submit settlement 
applications via commercial delivery service with tracking capability 
or electronically through an OWCP-authorized system.
    Current Sec.  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 revised rule removes 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 Sec.  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, 
revised Sec.  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 Sec.  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. New Sec.  702.101 specifies the methods by which 
the claimant can provide documents or information to

[[Page 12922]]

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, 
revised Sec.  702.261 eliminates the requirement that notice be given 
in person or in writing. In addition, the revised 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, revised Sec.  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 Sec.  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 revised rule removes the reference to 
service by mail and instead indicates that service should be 
accomplished under the same procedures that govern service of 
compensation orders under Sec.  702.349.
    Current Sec.  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 revised rule deletes the word ``mail'' and 
replaces it with the word ``send'' so that delivery of the memorandum 
is governed by the general rule in Sec.  702.101.
20 CFR 702.281 Third Party Action
    Current Sec.  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, revised Sec.  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 Sec.  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 Sec.  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. 
Revised Sec.  702.315(a) modifies the rule in two ways. First, the 
revised rule substitutes the phrase ``filed and served'' for ``filed 
and mailed'' to conform the language to the addition of Sec.  
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, revised Sec.  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 Sec.  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, Sec.  702.317(c) instructs 
the district director to transmit the pre-hearing statements, a 
transmittal letter, and certain other evidence to OALJ. 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 revised 
rule substitutes the term ``transmission'' for ``mailing'' in paragraph 
(c).
20 CFR 702.319 Obtaining Documents From the Administrative File for 
Reintroduction at Formal Hearings
    Current Sec.  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, revised Sec.  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 Sec.  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 revised rule deletes that 
requirement from Sec.  702.321(a)(1). The Department has also 
eliminated 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 Sec.  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 revised rule 
removes the reference to the district director that had original 
jurisdiction and instead directs the

[[Page 12923]]

administrative law judge to forward the record to the district director 
who administered the case.
    This rule contains 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 revised 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 revised 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.
    This rule is also revised to add a new paragraph (b) 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, Sec.  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.
    New Sec.  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.
    New Sec.  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.
    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, 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.
    Paragraph (b)(4) provides that all compensation orders issued after 
the service waiver form is received will 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, 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 Sec.  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 revised rule incorporates the filing provisions found in 
Sec.  702.349. This revision clarifies that supplementary compensation 
orders must be treated like any other compensation order for purposes 
of filing and service. In addition, by cross-referencing Sec.  702.349, 
the Department intends to extend the provisions allowing voluntary 
waiver of registered or certified mail service in Sec.  702.349(b) to 
supplementary compensation orders.
20 CFR 702.432 Debarment Process
    Current Sec.  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 Sec.  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 revised rule 
removes 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 Sec.  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,

[[Page 12924]]

and it both limits the administrative law judge's ability to take 
advantage of electronic service methods and imposes an unnecessary 
expense. Accordingly, revised Sec.  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 Sec.  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, revised Sec.  
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/lsindustrynotices/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 revised rule eliminates those provisions 
that require insurance companies to report coverage to individual 
district directors. In addition, the revised 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 revised 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 Sec.  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, revised Sec.  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 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 revised rule specifies the methods an insurer can use to give 
notice of cancellation. For notice to the district director, the 
revised rule allows insurers to report cancellations to DLHWC either in 
a manner prescribed under Sec.  702.101(a) or in the same manner as 
they report coverage under Sec.  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 revised rule requires that the cancellation notice be 
sent in accordance with the methods set forth in Sec.  702.101(b). 
Complying with Sec.  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 revised 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, revised Sec.  703.116 replaces references to the 
district director with references to DLHWC. In addition, revised Sec.  
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 Sec.  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, revised Sec.  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

[[Page 12925]]

insured employer carries on operations will receive and accept the 
carrier's report of insurance. To conform this regulation to the 
centralized reporting system, revised Sec.  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 Sec.  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 Sec.  703.119. Accordingly, the Department has deleted 
this section.
    Section 703.120 provides that a separate report required by Sec.  
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, revised Sec.  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, revised Sec.  
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 Sec.  
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 has deleted current 
Sec.  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 
Sec.  703.502. Accordingly, the Department has deleted 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.
    This rule allows 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.
    This 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 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. 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 non-substantive 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 direct final

[[Page 12926]]

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: <a href="/cdn-cgi/l/email-protection#b4fbfde6f5ebc7c1d6d9ddc7c7dddbdaf4dbd9d69ad1dbc49ad3dbc2"><span class="__cf_email__" data-cfemail="7e31372c3f210d0b1c13170d0d1711103e11131c501b110e50191108">[email protected]</span></a>. 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 direct final rule 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:
    <bullet> Evaluate whether the collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    <bullet> Evaluate the accuracy of the agency's estimate of the 
burden of the collection of information, including the validity of the 
methodology and assumptions used;
    <bullet> Enhance the quality, utility, and clarity of the 
information to be collected; and
    <bullet> 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.
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 
Pre-Hearing 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 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

[[Page 12927]]

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 broadens available transmission 
methods. From the Department's view, this rule allows easier and more 
efficient transmission of critical documents and information to OWCP, 
and allows 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, can use 
electronic technologies that they routinely employ when communicating 
with other entities.
    All currently used methods of submitting documents 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 in many cases gives 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 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 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 12222-23 (March 15, 2004). But 
this rule 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 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 rule allows for several years. No 
change in their conduct will be required. Third, because the 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 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 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 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 
amends 20 CFR parts 702 and 703 as follows:

PART 702--ADMINISTRATION AND PROCEDURE

0
1. The authority citation for part 702 is revised to read as follows:


[[Page 12928]]


    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.


0
2. Add Sec.  702.101 to subpart A to read as follows:


Sec.  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 OWCP-authorized 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 OWCP-authorized 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.

0
3. Revise Sec.  702.102 to read as follows:


Sec.  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 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.
0
4. Revise Sec.  702.103 to read as follows:


Sec.  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.

0
5. Revise Sec.  702.104(b) to read as follows:


Sec.  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.
0
6. In Sec.  702.174, revise the introductory text of paragraph (a), 
paragraph (b), and the introductory text of paragraph (d) to read as 
follows:


Sec.  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 Sec.  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

[[Page 12929]]

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:
* * * * *

0
7. Revise Sec.  702.203 to read as follows:


Sec.  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.

0
8. Revise Sec.  702.215 to read as follows:


Sec.  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.

0
9. Revise Sec.  702.224 to read as follows:


Sec.  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.

0
10. Revise Sec.  702.234 to read as follows:


Sec.  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.

0
11. In Sec.  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:


Sec.  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 Sec.  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 Sec.  
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 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 Sec.  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.

0
12. Revise Sec.  702.251 to read as follows:


Sec.  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.

0
13. Revise Sec.  702.261 to read as follows:


Sec.  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.

0
14. In Sec.  702.272, revise the last two sentences of paragraph (a) 
and paragraph (b) to read as follows:


Sec.  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

[[Page 12930]]

in an order, to be filed and served in accordance with Sec.  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 Sec.  
702.317.

0
15. In Sec.  702.281, revise the introductory text of paragraph (a) and 
the last sentence of paragraph (b) to read as follows:


Sec.  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.
0
16. Revise Sec.  702.315 to read as follows:


Sec.  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 Sec.  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 Sec.  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.
0
17. Revise Sec.  702.317 to read as follows:


Sec.  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 X-rays, 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 Sec.  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 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 Sec.  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.

0
18. Revise Sec.  702.319 to read as follows:


Sec.  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.

0
19. In Sec.  702.321, revise paragraphs (a)(1), (b), and (c) to read as 
follows:


Sec.  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

[[Page 12931]]

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 Sec.  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 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 Sec.  702.317(c), the district 
director's denial of the application.
* * * * *

0
20. Revise Sec.  702.349 to read as follows:


Sec.  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

[[Page 12932]]

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.

0
21. Revise Sec.  702.372 to read as follows:


Sec.  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 Sec.  702.315, or if agreement on the 
issue is not reached, then as in Sec. Sec.  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 Sec.  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.

0
22. In Sec.  702.432, revise the introductory text of paragraph (b), 
and paragraphs (b)(6) and (e) to read as follows:


Sec.  702.432  Debarment process.

* * * * *
    (b) Pertaining to health care providers and claims representatives. 
If after 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.

0
23. In Sec.  702.433, revise paragraphs (a), (b), (e) and (f) to read 
as follows:


Sec.  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

0
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.

0
25. In Sec.  703.2, revise the introductory text of paragraph (a) to 
read as follows:


Sec.  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.
* * * * *

[[Page 12933]]

0
26. Revise Sec.  703.113 to read as follows:


Sec.  703.113  Marine insurance contracts.

    A longshoremen's policy, or the longshoremen's endorsement provided 
for by Sec.  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 Sec.  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.

0
27. Revise Sec.  703.114 to read as follows:


Sec.  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 Sec.  702.101(a) of this chapter or in the same manner that reports 
of issuance of policies and endorsements are reported under Sec.  
703.116; and
    (b) Notice to the employer is given by a method specified in Sec.  
702.101(b) of this chapter.

0
28. Revise Sec.  703.116 to read as follows:


Sec.  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.

0
29. Revise Sec.  703.117 to read as follows:


Sec.  703.117  Report; by whom sent.

    The report of issuance of a policy and endorsement provided for in 
Sec.  703.116 or notice of cancellation provided for in Sec.  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.

0
30. Revise Sec.  703.118 to read as follows:


Sec.  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 Sec.  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.


Sec.  703.119  [Removed and Reserved]

0
31. Remove and reserve Sec.  703.119.

0
32. Revise Sec.  703.120 to read as follows:


Sec.  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 Sec.  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 Sec.  703.116, with 
the name of only one employer on each form.


Sec.  703.502  [Removed and Reserved]

0
33. Remove and reserve Sec.  703.502.

    Signed at Washington, DC, this 25th day of February, 2015.
Leonard J. Howie III,
Director, Office of Workers' Compensation Programs.
[FR Doc. 2015-05103 Filed 3-11-15; 8:45 am]
 BILLING CODE 4510-CR-P


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