June 17, 1997

ALL ASSOCIATION MEMBERS

Circular Letter No. 97-1279

RE: Minnesota Contractors Premium Adjustment Program (MCPAP)

The Minnesota Department of Commerce has approved to be effective January 1, 1998, applicable to new and renewal business only, an amendment of the special Minnesota rules of the Basic Manual to accommodate changes in the law pertaining to holiday, vacation, and sick pay.

Effective October 1, 1995, Minnesota law changed to include holiday, vacation, and sick pay as part of the payroll base used to determine auditable premium. Since the instructions to apply for the Minnesota Contractors Premium Adjustment Program (MCPAP) follow normal audit procedures, it is necessary that the manual pages be amended due to this law change.

The attached exhibit outlines the changes required in the Basic Manual necessary to implement the above proposal. Please note that the proposed language on the exhibit page contains underlined text. The underlining represents the new or added text necessary to accomplish the proposed change.

Very truly yours,

John P. Hildebrandt

President