A. State agencies shall make payments in lieu of contributions in accordance with the provisions of Sections 51-1-15 and 51-1-45 N.M. Stat. Ann..

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B. Local public bodies shall finance benefits paid to an individual based on services performed in their employ by:

(1)     participating in the local public body compensation reserve fund; (2)     paying contributions to the department; or

(3)     making an election to become liable for payments in lieu of contributions in accordance with the provisions of Subsection B or E of Section 51-1-13 N.M. Stat. Ann..