April 23, 1996

ALL ASSOCIATION MEMBERS

Circular Letter No. 96-1249

RE: Minnesota Legislature -- Chapter 374

On September 7, 1995, we mailed Circular Letter 95-1236 -- Minnesota Department of Commerce Bulletin 95-5. Part of that Bulletin dealt with a new limitation which became effective January 1, 1996.

Attached is a copy of the newly enacted Chapter 374. Please note that sections 1 and 2 of Chapter 374 eliminate the limitation on experience rating, premium discounts, and scheduled credits or debts retroactively to January 1, 1996. In effect, this means the limitation never existed.

Also, please note that section 3 imposes statutory guidelines for the determination of independent contractor status. The Association is attempting to develop more information with regard to these guidelines. When more information is available, we will publish it in a future circular letter.

Very truly yours,

JOHN P. HILDEBRANDT

President