DCA reorganization plan under review; hybrid telework guidance will increase on-site days

Department of Consumer Affairs (DCA) staff briefed the advisory council on the governor’s proposed reorganization and updated telework guidance during the May 8 meeting.

Susan Kilcrease from DCA summarized the governor’s reorganization plan in which Business, Consumer Services and Housing Agency functions would be split into a new California Housing and Homelessness Agency (CHHA) and a separate Business and Consumer Services Agency. If the reorganization proceeds, the Department of Consumer Affairs would be among eight departments in the new Business and Consumer Services Agency. The plan was submitted to the Little Hoover Commission on April 4 for an approximately 90-day review; the commission will send a recommendation to the governor and the Legislature, after which the Legislature has 60 days to act.

Kilcrease said the new Business and Consumer Services Agency would be created in July 2025 with a 12-month transition and become operative July 1, 2026, if not rejected by a legislative resolution. Separately, Kilcrease and bureau staff noted a March 3 executive order requiring state agencies to revise hybrid telework policies so most office-based employees increase in-office time from two to four days per week beginning July 1, 2025; exceptions may be made case-by-case following California Department of Human Resources guidance.

Council members asked clarifying questions about acronyms and the likely operational impacts to the bureau; bureau staff said they do not anticipate substantial day-to-day changes for bureau operations but will continue to receive updates from DCA leadership.