(a) A governmental entity liable for contributions which elects to become liable for payments in lieu of contributions shall file written notice of such election in such manner and on such forms as the Department of Labor may request.

1. (1) Such notice shall be filed before the beginning of the calendar year to which the election applies. However, if the governmental entity was not liable in the preceding calendar year, or became liable for contributions after the beginning of the calendar year, the notice shall be filed not later than 30 days after the end of the calendar quarter in which it first became liable.
2. (2) If a group of governmental entities elect jointly to become liable for payments in lieu of contributions, the notice shall be signed by all members of the group and shall designate one of the members as agent for the others in relation to the group election.

(b) An election to become liable for payments in lieu of contributions shall continue to apply until it has been terminated in accordance with the provisions of this subdivision.

1. (1) It may be terminated by a governmental entity as of the first day of a calendar year by filing a written notice to this effect with the Department of Labor before the beginning of such year. If governmental entities are members of a group which elected jointly to become liable for payments in lieu of contributions, the designated agent for an individual member shall file such notice, which shall then be deemed to apply to all members of the group. Such notice of termination shall be filed not later than 30 days before the beginning of the calendar year, and such agent shall inform all members of the group of the action taken. However, any member of such group, individually or jointly as a group with other governmental entities, may file a new notice of election in accordance with the provisions of subdivision (a) of this section.
2. (2) It may be cancelled by the commissioner with respect to a governmental entity at any time by giving written notice to the governmental entity, or to the designated agent for a group of governmental entities (in which event the cancellation shall apply to all members of the group), if there is a failure to make timely payment, as required pursuant to subdivision (c) of this section, of benefits charged to the account of the governmental entity or, with respect to a member of a group having made a joint election, charged to the account of any member of the group.

(d) A governmental entity whose election has been cancelled pursuant to paragraph (b)(2) of this section may thereafter file a new notice of election in accordance with the provisions of subdivision (a) of this section, individually or as a member of a group, provided:

1. (1) its outstanding obligations or, if it was a member of a group having made a joint election, the outstanding obligations of all members of the group, have been liquidated; and
2. (2) it has satisfied the commissioner, and the commissioner has made a finding to this effect, that a failure to make payments as required is not likely to recur.