1.    Benefits paid to employees of the state of North Dakota, its departments and instrumentalities, or any instrumentality of more than one of the foregoing, or an instrumentality of the foregoing and one or more other states, which are attributable to employment by an employing unit which, after December 31, 1977, is defined as an employer, must be financed by one of the following methods:

a.    By payment of contributions as provided under section 52-04-06, plus one-half the cost of the extended benefits paid that are attributable to wages paid by an employer.

b.    By payment in lieu of contributions each quarter for the calendar years 1978 and 1979 in an amount equal to one percent of their total quarterly payroll, and the rate of contributions to be paid for each two-year period after 1979 must be as determined by the bureau each January by computing the cost of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid by employers, and the bureau may modify such rate in order to minimize excess or insufficient payments in any prior periods.

c.    In lieu of contributions an employer may elect to pay to the bureau for the unemployment fund an amount equal to the amount of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid in the employ of such governmental employer, to individuals for weeks of unemployment.

2.    Benefits paid to employees of political subdivisions, other than state government, its departments and instrumentalities, or any instrumentality of more than one of the foregoing which are attributable to employment by an employing unit which, after December 31, 1977, is defined as an employer, must be financed by one of the following methods:

a.    By payment of contributions as provided under section 52-04-06 plus one-half the cost of the extended benefits paid that are attributable to wages paid by an employer.

b.    By payment in lieu of contributions each quarter for the calendar year 1978 in an amount equal to one percent of their total quarterly payroll, and the rate of contribution to be paid quarterly each year after 1978 must be determined by the bureau each January by computing the cost of benefits paid under chapters    52-06 and 52-07.1 which are attributable to wages paid by employers, and the bureau may modify such rate in order to minimize excess or insufficient payments in any prior periods.

c.    In lieu of contributions an employer may elect to pay to the bureau for the unemployment fund an amount equal to the amount of benefits paid under chapters 52-06 and 52-07.1 which are attributable to wages paid in the employ of such governmental employer, to individuals for weeks of unemployment.

3.    Employers under this section shall notify the bureau of the plan selected for financing benefits within sixty days of becoming an employer. In the event of an unexcused failure of an employer to notify the bureau of the plan selected for financing benefits, the bureau shall assess that employer the rate of contributions provided for in section 52-04-06 plus one-half the cost of the extended benefits paid that are attributable to wages paid by that employer.

4.    Elections and changes in the method of financing provided for in section 52-04-18 are applicable to employers under this section.

5.    Any two or more employers under this section may file a joint application for the establishment of a group for the purpose of wage reporting and financing as regulations may prescribe.

6.    Past-due payments under this section are subject to the same interest and penalties that apply to past-due contributions in section 52-04-11.