As you may be aware, President Obama has signed the HR1624 bill (PACE: Protecting Affordable Coverage for Employees Act) into federal law.
This act repeals the mandated transition of groups of 51-100 into the small group market. Consequently, each state now has the option to choose their definition of the small group market (1-50 or 1-100) rather than adhere to the former requirement defined by the Affordable Care Act, which was originally scheduled to go into effect January 1, 2016.
At this time California has not announced its decision, however it is expected that they will proceed with the expansion of the small group market to 1-100.
LISI will keep you updated as a decision is made.