Marvin Mandel, Governor                          1759

tive Director may deduct from the money deposited under this
paragraph by a non-profit organization or sell the securities it has
so deposited to the extent necessary to satisfy any due and unpaid pay-
ments in lieu of contributions and any applicable interest and penalties
provided for in subsection (8d)(D)(3)(vi) hereof. The Execu-
tive Director shall require the organization within 30 days following
any deduction from a money deposit or sale of deposited securities
under the provisions of this subparagraph to deposit sufficient addi-
tional money or securities to make whole the organization's deposit
at the prior level. Any cash remaining from the sale of those securi-
ties shall be a part of the organization's escrow account. The Execu-
tive Director may, at any time, review the adequacy of the deposit
made by any organization. If, as a result of that review, he determines
that an adjustment is necessary, he shall require the organization
to make additional deposit within 30 days of written notice of his
determination or shall return to it that portion of the deposit as he
no longer considers necessary, whichever action is appropriate. Dis-
position of income from securities held in escrow shall be governed
by the applicable provisions of the State law.

(iv) If any non-profit organization fails to file a bond or make a
deposit, or to file a bond in an increased amount or to increase or
make whole the amount of a previously made deposit, as provided
under this paragraph, the Executive Director may terminate that
organization's election to make payments in lieu of contributions
and that termination shall continue for not less than the four-
consecutive-calendar-quarter period beginning with the quarter in
which the termination becomes effective. However, the Executive
Director may extend for good cause the applicable filing, deposit or
adjustment period by not more than 120 days.

(2) Authority to terminate elections.—(i) If any non-profit or-
ganization is delinquent in making payments in lieu of contributions
as required under this subsection, the Executive Director may termi-
nate that organization's election to make payments in lieu of contri-
butions as of the beginning of the next taxable year, and termination
shall be effective for that and the next taxable year.

(ii) If any political subdivision is delinquent in making payments
in lieu of contributions as required under this subsection, the Execu-
tive Director shall have available all the remedies for collection of
past due contributions provided by law.

(f) Financing benefits paid to employees of the State of Mary-
land.—Benefits attributable to service in the employ of the State of
Maryland, AS DEFINED IN SECTION 20(G)(7)(III) OF THIS
ARTICLE, shall be financed by payments in lieu of contributions as
provided with respect to non-profit organizations in paragraphs (3)
and (4) of subsection (d) hereof, those payments to be made to the
Employment Security Administration upon billing of the Secretary
of Personnel by the Administration.

[(d)] (g) On his own motion or on the application of an em-
ploying unit, the Executive Director shall, on the basis of facts found
by him determine whether an employing unit is an employer and
whether services performed for it constitute employment, and the
contribution rate to be assigned to an employer. A notice of the
Executive Director's determination, which shall include a statement
of the supporting facts found by the Executive Director, shall be
mailed to the last known address of the employing unit affected.