A. Any local public body may elect to make payments in lieu of contributions by paying to the department in accordance with the provisions of the Unemployment Compensation Law for the unemployment fund an amount equal to the amount of regular benefits and extended benefits paid that is attributable to service in the employ of such local public body to individuals for weeks of unemployment.

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B. Any local public body electing to make payments in lieu of contributions shall be: (1)     subject to the provisions of Subsections B and E of Section 51-1-13 N.M. Stat. Ann. governing the payment of contributions and formation of group accounts by nonprofit organizations; and

(2)     required to make an election to become liable for payments in lieu of contributions for a period of not less than two taxable years by filing a written notice of its election with the department.

C. Payments made by any local public body under the provisions of this section shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the local public body.

D. The secretary shall have the authority, in accordance with established principles of law, to determine what constitutes a separate local public body for the purposes of this section.

E. Local public bodies electing to make payments in lieu of contributions through a group account, pursuant to Subsection E of Section 51-1-13 N.M. Stat. Ann., may authorize the group agent to invest money deposited in the group account. Money deposited in the group account and any income from such account shall be held in trust and deposited in a segregated account. Money in the account may be invested only in legal investments for the state permanent fund. Money in the account shall be used for the purpose of the account, including but not limited to paying the cost of benefits, penalties and interest and the cost of administering the account.