California Code, Unemployment Insurance Code - UIC § 1027.5

On the computation date each year, the amount each employer's net balance of reserve is more negative than 21 percent of the employer's average base payroll shall be canceled from his or her reserve balance.

The amendment made to this section by Chapter 1296 of the Statutes of 1984 shall be deemed to have become operative on June 30, 1984, and the amendment shall be given retroactive effect to that date.