California proposes creation of two new agencies for housing and consumer services

The Joint Hearing of the Assembly Business and Professions Committee and the Assembly Housing and Community Development Committee convened on May 13, 2025, to discuss significant organizational changes within the California Department of Business, Consumer Services, and Housing (BCSH). The meeting focused on a proposal to restructure BCSH into two distinct agencies aimed at enhancing efficiency and effectiveness in addressing California's housing and homelessness needs, as well as business and consumer regulation.

Secretary Moss opened the session by emphasizing the core value of innovation embedded in the agency's strategic plan. He highlighted the need for continuous improvement and presented the proposal as an opportunity to better serve the public. Moss noted that since its establishment in 2012, BCSH has expanded its responsibilities significantly, overseeing approximately 4 million professionals and businesses across the state. He expressed concerns that the agency's current structure may hinder its effectiveness due to its disparate functions.

The proposed reorganization would create the California Housing and Homelessness Agency, dedicated to addressing housing and homelessness issues, and the Business Consumer Services Agency (BCSA), focused on business regulation and consumer protection. Moss asserted that this separation would allow for specialized leadership and improved service delivery, enhancing licensing and enforcement functions, modernizing technology, and strengthening oversight.

Moss outlined the goals of the reorganization, which include fostering economic growth through regulated industries and ensuring consumer trust in licensed professionals and businesses. He indicated that the BCSA is expected to be operational by July 2026, allowing time for necessary administrative preparations and change management.

Following Moss's presentation, the committee members were invited to ask questions or provide comments. Assemblymember Rubio expressed appreciation for the extensive work undertaken by the agency, reflecting on the complexity of its responsibilities.

The meeting concluded with a commitment to further discussions and a focus on the next steps in the reorganization process, underscoring the importance of these changes for California's regulatory landscape and public service delivery.