Section 3254.5 Of Chapter 6. Voluntary Plans From California Unemployment Insurance Code >> Division 1. >> Part 2. >> Chapter 6.
3254.5
. A voluntary plan in force and effect at the time a
successor employing unit acquires the organization, trade, or
business, or substantially all the assets thereof, or a distinct and
severable portion of the organization, trade, or business, and
continues its operation without substantial reduction of personnel
resulting from the acquisition, shall not withdraw without specific
request for withdrawal thereof. The successor employing unit and the
insurer shall be deemed to have consented to the provisions of the
plan unless written request for withdrawal, effective as of the date
of acquisition, is transmitted to the Director of Employment
Development, by the employer or the insurer, within 30 days after the
acquisition date, or within 30 days after notification from the
Director of Employment Development that the plan is to continue,
whichever is later. Unless the plan is withdrawn as of the date of
acquisition by the successor employer or the insurer, a written
request for withdrawal shall be effective only on the anniversary of
the effective date of the plan next occurring on or after the date of
acquisition, except that the plan may be withdrawn on the operative
date of any law increasing the benefit amounts provided by Sections
2653 and 2655 or the operative date of any change in the rate of
worker contributions as determined by Section 984, if notice of the
withdrawal of the plan is transmitted to the Director of Employment
Development not less than 30 days prior to the operative date of law
or change. If the plan is not withdrawn on 30 days' notice because of
the enactment of a law increasing benefits or because of a change in
the rate of worker contributions as determined by Section 984, the
plan shall be amended to conform to the increase or change on the
operative date of the increase or change. Promptly, upon notice of
change in ownership, any insurer of a plan shall prepare and issue
policy forms and amendments as required, unless the plan is
withdrawn. Nothing contained in this section shall prevent future
withdrawal of any plans on an anniversary of the effective date of
the plan upon 30 days' notice, except that the plan may be withdrawn
on the operative date of any law increasing the benefit amounts
provided by Sections 2653 and 2655 or the operative date of any
change in the rate of worker contributions as determined by Section
984, if notice of the withdrawal of the plan is transmitted to the
Director of Employment Development not less than 30 days prior to the
operative date of the law or change. If the plan is not withdrawn on
30 days' notice because of the enactment of a law increasing
benefits or because of a change in the rate of worker contributions
as determined by Section 984, the plan shall be amended to conform to
the increase or change on the operative date of the increase or
change.