In a major move to streamline state operations and sharpen focus on critical issues, Governor Gavin Newsom announced in April a sweeping reorganization of California’s government structure. The plan involves dissolving the existing Business, Consumer Services and Housing Agency (BCSH) and replacing it with two newly formed entities: the California Housing and Homelessness Agency (CHHA) and the Business and Consumer Services Agency (BCSA).
Following a series of legislative hearings, public information sessions, and policy reports, the proposal faced minimal opposition. With no legislative veto by the July 4th deadline, the reorganization is now officially moving forward.
What is the California Housing and Homelessness Agency (CHHA)?
The CHHA is designed to centralize and coordinate the state’s efforts around housing, homelessness, and civil rights. By bringing together key departments under one roof, the agency aims to improve collaboration, policy alignment, and service delivery across these interconnected areas.
CHHA will include the following departments:
- Housing Development and Finance Committee (HDFC) (newly formed)
- Department of Housing and Community Development (HCD)
- California Interagency Council on Homelessness (Cal ICH)
- California Housing Finance Agency (CalHFA)
- Civil Rights Department (CRD)
This consolidation is expected to enhance the state’s ability to address California’s housing crisis and homelessness challenges with a more unified and strategic approach.
What is the Business and Consumer Services Agency (BCSA)?
The BCSA will focus on strengthening consumer protections and improving regulatory efficiency. By streamlining oversight and enhancing responsiveness, the agency aims to better serve both consumers and regulated industries.
BCSA will oversee the following departments:
- Department of Alcoholic Beverage Control (ABC)
- Alcoholic Beverage Control Appeals Board (ABC AB)
- Department of Cannabis Control (DCC)
- Cannabis Control Appeals Panel (CCAP)
- California Horse Racing Board (CHRB)
- Department of Consumer Affairs (DCA)
- Department of Real Estate (DRE)
- Department of Financial Protection and Innovation (DFPI)
This restructuring reflects the state’s commitment to modernizing its regulatory framework while ensuring robust consumer protections across a wide range of industries.
The new agencies will become operational on July 1, 2026.