Since its creation in 2012, the Business, Consumer Services, and Housing Agency (BCSH) has grown significantly, reflecting California's increased focus on addressing our state's housing and homelessness challenges, and expanding consumer protections. Specifically, the number of total authorized positions and member departments under its purview has grown by nearly 50 percent.
This growth highlights the Agency's expanded responsibilities and the policy priorities of the Legislature and the Administration. This reorganization plan will streamline operations, improve coordination, and accelerate progress on these critical issues.
Reorganizing the Business, Consumer Services and Housing Agency
At the agency level, BCSH will be split into two agencies:
- California Housing and Homelessness Agency (CHHA): Housing, homelessness, and civil rights functions.
- Business and Consumer Services Agency (BCSA): Consumer protection and business regulation. (Renamed BCSH with a focus on consumer protection)
Reorganization
California Housing and Homelessness Agency (CHHA)
The creation of CHHA builds on the momentum from the past several years.
The Governor has made creating housing and addressing homelessness one of his top priorities, with unprecedented investments in affordable housing development and efforts to prevent and end homelessness.
It is time to take it a step further. California needs an integrated Housing and Homelessness Agency with the mission and vision of creating and sustaining housing availability, and therefore alleviating the current homelessness crisis.
Creation of the Housing Development and Finance Committee
To promote transparency, coordination, and alignment of state affordable housing resources, a new Housing Development and Finance Committee (HDFC) will be created at CHHA:
- The committee will provide centralized, coordinated guidance to state housing policy and funding decisions.
- The committee will streamline state affordable housing funding programs by creating a single application and timeline for affordable housing funding across CHHA departments.
- HDFC will bring more transparency to how the state funds and regulates affordable housing by making decisions on policy, awards, and appeals in a public forum.
Business and Consumer Services Agency (BCSA)
- The regulatory landscape has expanded significantly in recent years.
- The Department of Cannabis Control was created and continues to grow and evolve with a rapidly emerging industry.
- The Department of Financial Protection and Innovation was reimagined to strengthen consumer safeguards while adding licensing programs for debt collectors and digital financial assets.
- California has made significant strides in reducing barriers to licensure, expanding economic opportunities, and effectively regulating emerging industries.
The proposed BCSA structure will:
- Enhance consumer protection focus – Consumer protection requires a dedicated and nimble focus to react to new and changing consumer threats.
- Increased Focus on Regulatory Efficiency – Business and license regulation requires a focused regulator that can swiftly address constantly evolving industries and emerging issues.
- Strengthen Oversight – California needs a focused agency that is solely dedicated to consumer protection and regulatory efficiency.
- Support economic growth – Providing a more agile regulatory framework that balances protection with opportunity.
A standalone Business and Consumer Services Agency will streamline oversight, improve responsiveness, and reinforce California's national leadership in consumer protection—ensuring stronger safeguards and opportunities for all Californians.