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DCA reorganization proposal under review; state telework order will increase in-office days

5854701 · May 29, 2025
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Summary

Department of Consumer Affairs staff told BPPE’s advisory committee the governor’s plan to split the Business, Consumer Services and Housing Agency is under review by the Little Hoover Commission, and reminded members of a March executive order raising state in‑office minimums to four days per week beginning July 1, 2025.

A Department of Consumer Affairs representative briefed the advisory committee on the governor’s proposed reorganization and a separate executive order on state telework.

Ryan Tacher of DCA summarized the governor’s January reorganization plan to split the Business, Consumer Services and Housing Agency into two entities: a California Housing and Homelessness Agency and a Business and Consumer Services Agency that would include the Department of Consumer Affairs. The plan was delivered to the Little Hoover Commission on April 4 for an approximately 90‑day review, Tacher said; the commission held public hearings and is drafting a recommendation to the governor and Legislature. The Legislature will have 60 days to act unless either house adopts a majority resolution to reject the plan; the governor’s proposal anticipates a creation date of July 2025 and an operative date of July 1, 2026 with a one‑year transition.

Tacher said the bureau should see minimal direct operational impact if the reorganization is approved but that priorities could shift under a new agency secretary. He also announced departmental staffing changes: Levi Hall began as DCA’s compliance and equity officer on April 28 and will oversee organization-wide quality improvement, EEO compliance, internal audit coordination and diversity/equity efforts.

On telework, Tacher summarized an executive order issued March 3, 2025 requiring state agencies to raise hybrid telework policy minimums to four in-office days per week starting July 1, 2025. DCA has been implementing guidance from the California Department of Human Resources (CalHR) and conducting meetings with boards and bureau leadership to address space and exception requests.

Committee members asked whether the reorganization would have financial effects on BPPE; Tacher said he expected minimal initial financial impact. No formal committee action occurred on the item.