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GRP-1 • 2026

Governor’s reorganization plan: reorganization of executive branch of state government.

Governor’s reorganization plan: reorganization of executive branch of state government.

Budget Housing Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Last action
2025-07-05
Official status
Plan takes effect.
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on how the new agencies will be funded or what happens to employees of the dissolved agency.

Governor's Plan for State Government Reorganization

This plan reorganizes the executive branch of state government by eliminating an existing agency and creating two new agencies focused on housing, homelessness, and consumer services.

What This Bill Does

  • Eliminates the Business, Consumer Services, and Housing Agency as it currently exists.
  • Creates a new Business and Consumer Services Agency focused on consumer protections.
  • Establishes a California Housing and Homelessness Agency with specific departments to address housing and homelessness issues.
  • Sets up a Housing Development and Finance Committee within the new Housing and Homelessness Agency to manage affordable housing programs.
  • Moves an existing executive committee for housing finance into the new Housing Development and Finance Committee.
  • Changes how the Interagency Council on Homelessness operates, making it independent within the new Housing and Homelessness Agency.

Who It Names or Affects

  • State government agencies involved in business, consumer services, housing, and homelessness.
  • People working for or receiving services from these state agencies.

Terms To Know

Executive branch
The part of the government that carries out laws and policies.
Conforming changes
Changes made to make sure different parts of a law work together properly.

Limits and Unknowns

  • Details about how the new agencies will be funded are not provided.
  • The exact date when all these changes take effect is July 1, 2026.
  • It does not specify what happens to people who currently work for the Business, Consumer Services, and Housing Agency.

Bill History

  1. 2025-07-05 California Legislative Information

    Plan takes effect.

  2. 2025-07-04 California Legislative Information

    Statutory period expires pursuant to Government Code Section 12080.5

  3. 2025-05-05 California Legislative Information

    Senate – To Com. on RLS

  4. 2025-05-05 California Legislative Information

    Received by the Senate. Sixty-day statutory period ends July 4, 2025. (Government Code Section 12080.5.)

  5. 2025-05-05 California Legislative Information

    Received by the Assembly. (Sixty day mandatory period ends July 4, 2025, pursuant to Government Code Section 12080.5).

Official Summary Text

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.

Current Bill Text

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