CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Governor's Reorganization Plan
No. 1


May 05, 2025

An act to amend Sections 100, 10004, 10050, 19404, 23050, 23075, 26001, 26010, 26010.5, and 26040 of, and to amend and repeal Section 26180.5 of, the Business and Professions Code, to amend Sections 1916.12, 1918.5,1918.5, and 5405 of the Civil Code, to amend Sections 300, 1514, 14382, 14652.5, and 18022.5 of the Financial Code, to amend, repeal, and add Section 513 of the Food and Agricultural Code, to amend Sections 12895, 12896, and 12944 of, to amend and repeal Sections 12804, 12804.5, and 12856 of, to amend, repeal, and add Sections 8587.11, 8876.7, 11546.1, 11550, 12800, 12855, 12901, 14030, 15562.5, 15990, and 65040.12 of, to add Sections 12804.1, 12804.2, 12804.3, and 12804.4 to, and to add Part 5.1 (commencing with Section 14470) to Division 3 of Title 2 of, the Government Code, to amend Sections 35805 and 127501.4 of, to amend and repeal Section 50407.5 of, to amend, repeal, and add Sections 17974, 50093, 50150, 50151, 50153, 50154, 50210, 50216, 50230, 50250, 50400, 50423, 50462, 50900, 50901, 50913, 51005, 51624, 53524, and 54913 of, and to add Part 18 (commencing with Section 54920) to Division 31 of, the Health and Safety Code, to amend, repeal, and add Section 998.547 of the Military and Veterans Code, to amend, repeal, and add Section 75121 of the Public Resources Code, to amend Section 10200 of the Unemployment Insurance Code, and to amend Sections 8255, 8256, 8257, 8257.01, 8257.1, and 8257.2 of, to amend, repeal, and add Sections 4581, 9850, and 18901.59 of, to add Sections 8257.02, 8257.03, 8257.04, and 8257.05 to, and to repeal and add the heading of Chapter 6.5 (commencing with Section 8255) of Division 8 of, the Welfare and Institutions Code, relating to reorganization of the executive branch of state government.


LEGISLATIVE COUNSEL'S DIGEST


GRP 1, as introduced, Governor’s reorganization plan: reorganization of executive branch of state government.
Under existing law, the executive branch of state government includes the Business, Consumer Services, and Housing Agency.
This reorganization plan, as of July 1, 2026, would eliminate that agency and instead establish in state government the Business and Consumer Services Agency and the California Housing and Homelessness Agency, and would make conforming changes. The plan would provide that the California Housing and Homelessness Agency consists of specified departments. The plan would require the Secretary of California Housing and Homelessness to take various actions, including coordinating specified policies and programs, considering opportunities to align specified requirements and timelines, and coordinating with other departments and agencies, to achieve specified objectives. The plan would specify that the Business and Consumer Services Agency is headed by the Secretary of Business and Consumer Services, and require the California Housing and Homelessness Agency and the Business and Consumer Services Agency, as specified, to coordinate state policy, programs, and funding to help the state achieve its objectives related to housing, homelessness, and consumer protections and minimize service disruption due to the dissolution of the Business, Consumer Services, and Housing Agency, as provided.
This reorganization plan, as of July 1, 2026, would establish the Housing Development and Finance Committee within the California Housing and Homelessness Agency, headed by an executive director, and, upon appropriation, require all multifamily affordable housing programs, as defined, to be administered by the committee, as specified.
This reorganization plan would establish within the Business, Consumer Services, and Housing Agency a Housing Development and Finance Executive Committee for the purpose of centralizing affordable housing finance policymaking across state government. The plan would transfer the executive committee to the Housing Development Finance Committee effective July 1, 2026. The plan would require the executive committee to take various actions, including coordinating a cohesive and integrated housing finance system, overseeing the allocation of multifamily affordable housing programs, creating a consolidated application for multifamily affordable housing developers and a coordinated review process for the application of funds, and streamlining compliance monitoring of affordable multifamily rental housing developments, as specified.
Existing law requires the Governor to establish the Interagency Council on Homelessness and requires the council to consist of specified members. Under existing law, there is an executive officer of the council who is under the direction of the Secretary of Business, Consumer Services, and Housing and the council is required to be staffed by employees of the Business, Consumer Services, and Housing Agency.
This reorganization plan would establish the California Interagency Council on Homelessness as an independent entity within the California Housing and Homelessness Agency and would rename the existing council as the California Interagency Executive Council on Homelessness and establish it within the California Interagency Council on Homelessness.
This reorganization plan would authorize state agencies, departments, or entities to take actions prior to July 1, 2026, that are necessary to ensure that the provisions of the plan become operative on July 1, 2026, and are implemented in a timely fashion, as specified.

SECTION 1.

 Section 100 of the Business and Professions Code is amended to read:

100.
 (a) There is in the state government, in the Business, Consumer Services, and Housing Agency, Business and Consumer Services Agency, a Department of Consumer Affairs.
(b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 2.

 Section 10004 of the Business and Professions Code is amended to read:

10004.
 (a) “Department” means the Department of Real Estate in the Business, Consumer Services, and Housing Agency. Business and Consumer Services Agency.

(b)This section shall become operative on July 1, 2018.

(b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 3.

 Section 10050 of the Business and Professions Code is amended to read:

10050.
 (a) (1) There is in the Business, Consumer Services, and Housing Agency Business and Consumer Services Agency a Department of Real Estate, the chief officer of which department is named the Real Estate Commissioner.
(2) Notwithstanding any other law, the powers and duties of the department, as set forth in this part and Chapter 1 (commencing with Section 11000) of Part 2, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as if this part and that chapter were scheduled to be repealed as of January 1, 2026.
(b) It shall be the principal responsibility of the commissioner to enforce all laws in this part and Chapter 1 (commencing with Section 11000) of Part 2 in a manner that achieves the maximum protection for the buyers of real property and those persons dealing with real estate licensees.
(c) Wherever the term “commissioner” is used in this division, it means the Real Estate Commissioner.

(d)This section shall become operative on July 1, 2018.

(d) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 4.

 Section 19404 of the Business and Professions Code is amended to read:

19404.
 (a) “Board” means the California Horse Racing Board within the Business, Consumer Services, and Housing Agency. Business and Consumer Services Agency.
(b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 5.

 Section 23050 of the Business and Professions Code is amended to read:

23050.
 (a) There is in the state government, in the Business, Consumer Services, and Housing Agency, Business and Consumer Services Agency, a Department of Alcoholic Beverage Control. The department shall be administered through a civil executive officer who shall be known as the Director of Alcoholic Beverage Control. The director shall be appointed and shall serve as provided in Section 22 of Article XX of the Constitution and shall receive an annual salary as provided for by Chapter 6 of Part 1 of Division 3 of Title 2 of the Government Code.
(b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 6.

 Section 23075 of the Business and Professions Code is amended to read:

23075.
 (a) There is in the state government, in the Business, Consumer Services, and Housing Agency, Business and Consumer Services Agency, an Alcoholic Beverage Control Appeals Board the members of which shall be appointed and shall serve as provided in Section 22 of Article XX of the Constitution, and shall receive an annual salary as provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code.
(b) The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 7.

 Section 26001 of the Business and Professions Code is amended to read:

26001.
 For purposes of this division, the following definitions apply:
(a) “A-license” means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals.
(b) “A-licensee” means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals.
(c) “Animal” does not include a food animal as defined in Section 4825.1 or livestock as defined in Section 14205 of the Food and Agricultural Code.
(d) “Applicant” means an owner applying for a state license pursuant to this division.
(e) “Batch” means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types:
(1) Harvest batch. “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals.
(2) Manufactured cannabis batch. “Manufactured cannabis batch” means either of the following:
(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.
(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.
(f) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
(g) “Cannabis accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code.
(h) “Cannabis beverage” means a form of edible cannabis product that is intended to be consumed in its final state as a beverage.
(i) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from glandular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, a processed pet food, as defined by Section 113025 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
(j) “Cannabis event organizer” means a person authorized to plan and organize temporary cannabis events as authorized in Section 26200.
(k) “Cannabis products” has the same meaning as in Section 11018.1 of the Health and Safety Code, and includes cannabis products intended for use on, or consumption by, an animal. Cannabis products are not considered food, as defined by Section 109935 of the Health and Safety Code, a drug, as defined by Section 109925 of the Health and Safety Code, or a cosmetic, as defined by Section 109900 of the Health and Safety Code.
(l) “Child resistant” means designed or constructed to be significantly difficult for childre