Governor’s Reorganization Plan No. 1 of 2025: codification.

AB 170

California Bills

20250AB__017098AMD INTRODUCED 2025-01-08 AMENDED_SENATE 2026-06-26 2025 AB AMD Introduced by Committee on Budget (Assembly Members Gabriel (Chair), Addis, Ahrens, Alvarez, Bennett, Bonta, Caloza, Connolly, Fong, Haney, Hart, Jackson, Lee, Ortega, Patel, Petrie-Norris, Quirk-Silva, Ramos, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, and Wilson) LEAD_AUTHOR ASSEMBLY Committee on Budget Assembly Members Gabriel (Chair), Addis, Ahrens, Alvarez, Bennett, Bonta, Caloza, Connolly, Fong, Haney, Hart, Jackson, Lee, Ortega, Patel, Petrie-Norris, Quirk-Silva, Ramos, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, and Wilson <caml:Contribution>LEAD_AUTHOR</caml:Contribution><caml:House>ASSEMBLY</caml:House><caml:Name>Gabriel</caml:Name></caml:Legislator>"?>

An act to amend Sections 100, 10004, 10050, 19404, 23050, 23075, 26001, 26010, 26010.5, and of, and to amend and repeal

Section 26180.5 of, the Business and Professions Code, to amend Sections 1916.12, 1918.5, and 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 of the Food and Agricultural Code, to amend Sections 12895, 12896, and of, to amend and repeal Sections 12804, 12804.5, and of, to amend, add, and repeal

Section 15562.5 of, to amend, repeal, and add Sections 8587.11, 8876.7, 11546.1, 11550, 12800, 12855, 12901, 14030, 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 of Title of, the Government Code, to amend Sections and 127501.4 of, to amend and repeal

Section 50407.5 of, and 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 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 of the Public Resources Code, to amend

Section of the Unemployment Insurance Code, and to amend Sections 8255, 8256, 8257.01, 8257.1, and 8257.2 of, to amend, repeal, and add Sections and 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 of, the Welfare and Institutions Code, relating to reorganization of the executive branch of state government, and making an appropriation therefor, to take effect immediately, bill related to the budget. reorganization of the executive branch of state government, and making an appropriation therefor, to take effect immediately, bill related to the budget Governor’s Reorganization Plan No. 1 of 2025: codification.

Existing law requires the Governor, from time to time, to examine the organization of all agencies and determine what changes therein are necessary to accomplish specified purposes. Whenever the Governor finds that reorganization is in the public interest, existing law requires the Governor to prepare one or more reorganization plans, as specified. Existing law prescribes the form, content, and procedure of a reorganization plan.

Existing law requires the Legislative counsel to prepare for introduction not later than the next regular session of the Legislature occurring more than days after that in which a Governor’s reorganization plan takes effect a bill effecting the changes in the reorganization in the statutes as may be necessary to reflect the changes made by the reorganization plan.

Existing law, the Governor’s Reorganization Plan No. 1 of 2025, which became effective on July 5, 2025, assigns and reorganizes the functions of state government among executive officers and agencies by, among other things, eliminating the Business, Consumer Services, and Housing Agency as of July 1, 2026, and instead establishing the Business and Consumer Services Agency and the California Housing and Homelessness Agency, each composed of specified departments that are currently within the Business, Consumer Services, and Housing Agency, as provided.

This bill would enact the statutory changes necessary to reflect portions of the changes in law made by the Governor’s Reorganization Plan No. 1 of 2025. The bill would make an appropriation of $300,000 to the Department of Housing and Community Development for the purpose of supplementing existing contracts pursuant to statutory requirements to translate specified guidelines, as specified. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025.</xhtml:p>"?> MAJORITY YES YES NO YES NO NO NO NO NO YES The people of the State of California do enact as follows:

SECTION 1. Section of the Business and Professions Code is amended to read: 100. (

a) There is in the state government, in the 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 of the Business and Professions Code is amended to read: 10004. (a) “Department” means the Department of Real Estate in the 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. 3.

Section of the Business and Professions Code is amended to read: 10050. (a)

(1) There is in the 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, 2030. (

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 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) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 4.

Section of the Business and Professions Code is amended to read: 19404. (a) “Board” means the California Horse Racing Board within the 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 of the Business and Professions Code is amended to read: 23050. (

a) There is in the state government, in the 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 of

Article XX of the Constitution and shall receive an annual salary as provided for by

Chapter of Part of Division of Title 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 of the Business and Professions Code is amended to read: 23075. (

a) There is in the state government, in the 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 of

Article XX of the Constitution, and shall receive an annual salary as provided for by

Chapter 6 (commencing with

Section 11550) of Part of Division of Title 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 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 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 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 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, industrial hemp, or cannabis product that is one of the following types: (1) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other plant matter from either cannabis or industrial hemp that is harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals. (2) “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) “Cannabinoid” means a chemical compound found in cannabis and industrial hemp that binds to or otherwise activates cannabinoid receptors in humans and animals. “Cannabinoid” includes, but is not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD). (g) “Cannabis” has the same meaning as in

Section of the Health and Safety Code. (h) “Cannabis accessories” has the same meaning as in

Section 11018.2 of the Health and Safety Code. (i) “Cannabis beverage” means a form of edible cannabis product that is intended to be consumed in its final state as a beverage. (j) “Cannabis concentrate” has the same meaning as in

Section 11006.5 of the Health and Safety Code. (k) “Cannabis event organizer” means a person authorized to plan and organize temporary cannabis events as authorized in

Section 26200. ( l ) “Cannabis products” has the same meaning as in

Section 11018.1 of the Health and Safety Code. (m) “CBD isolate” means a compound extracted from cannabis or industrial hemp consisting of cannabidiol (CAS number 13956-29-1), with a purity level greater than percent and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid. (n) “CBN isolate” means a compound extracted from cannabis or industrial hemp consisting of cannabinol (CAS number 521-35-7), with a purity level greater than percent, and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid. (o) “Child resistant” means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly. (p) “Combined activities license” means a state license that authorizes two or more commercial cannabis activities at the same premises, with the exception of laboratory testing.

A combined activities license shall conform with all requirements imposed by this division to the extent the licensee engages in those activities. (q) “Commercial cannabis activity” includes the cultivation of cannabis or the possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division, or acting as a cannabis event organizer for temporary cannabis events. (r) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (s) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. (t) “Customer” means a natural person years of age or older or a natural person years of age or older who possesses a physician’s recommendation, or a primary caregiver. (u) “Daycare center” has the same meaning as in

Section 1596.76 of the Health and Safety Code. (v) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform. (w) “Department” means the Department of Cannabis Control within the Business and Consumer Services Agency. (x) “Director” means the Director of the Department of Cannabis Control. (y) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees. (z) “Distributor” means a licensee that is authorized to engage in the distribution of cannabis, industrial hemp, and cannabis products. (aa) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems. (ab) “Edible cannabis product” means a cannabis product that is intended to be used, in whole or in part, for human or animal consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with

Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by

Section of the Health and Safety Code, a processed pet food, as defined by

Section of the Health and Safety Code, or a drug, as defined by

Section of the Health and Safety Code. (ac) “Fund” means the Cannabis Control Fund established pursuant to

Section 26210. (ad) “Industrial hemp” has the same meaning as in

Section 11018.5 of the Health and Safety Code. (ae) “Kind” means applicable type or designation regarding a particular cannabis variant, origin, or product type, including, but not limited to, strain name, trademark, or production area designation. (af) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis or cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product. (ag) “Labor peace agreement” means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant’s business.

This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.

This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization. (ah) “License” means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license. (ai) “Licensed market” means the California licensed market for cannabis, industrial hemp, and cannabis products that is subject to regulation by this division. (aj) “Licensee” means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license. (ak) “Licensing authority” means the department and any state agency currently or formerly responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee. (al) “Live plants” means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants. (am) “Local jurisdiction” means a city, county, or city and county. (an) “Lot” means a batch or a specifically identified portion of a batch. (ao) “M-license” means a state license issued under this division for commercial cannabis activity involving medicinal cannabis. (ap) “M-licensee” means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis. (aq) “Manufacture” means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a cannabis product. (ar) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in

Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. (as) “Microbusiness” means a licensee that is authorized to engage in cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level manufacturer, and retailer under this division, provided such licensee can demonstrate compliance with all requirements imposed by this division on licensed cultivators, distributors, Level manufacturers, and retailers to the extent the licensee engages in such activities. (at) “Nursery” means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis. (au) “Operation” means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products. (av) “Owner” means any of the following:

(1) A person with an aggregate ownership interest of percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) An individual who will be participating in the direction, control, or management of the person applying for a license. (aw) “Package” means any container or receptacle used for holding cannabis or cannabis products. (ax) “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. (ay) “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at

Section 11362.5 of the Health and Safety Code. (az) “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. (ba) “Primary caregiver” has the same meaning as in

Section 11362.7 of the Health and Safety Code. (bb) “Processor” means a person authorized to engage in only trimming, drying, curing, grading, packaging, and labeling of cannabis and nonmanufactured cannabis products. (bc) “Purchaser” means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products. (bd) “Retailer” means a person authorized to engage in the retail sale and delivery of cannabis or cannabis products to customers. (be) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased. (bf) “Synthetic cannabinoid” means a cannabinoid or cannabinoid-like compound that is produced by using biosynthesis, bioconversion, or chemical synthesis, reaction, modification, conversion, or a similar process.

This includes, but is not limited to, any form of tetrahydrocannabinol that was produced by the conversion of cannabidiol (CBD) (CAS number 13956-29-1), or any other chemical substance identified by the department in regulation. Synthetic cannabinoid does not include any of the following:

(1) A cannabinoid produced by the decarboxylation of acidic phytocannabinoids without the use of chemical reagents or chemical catalysts. This includes, but is not limited to, the conversion of cannabidiolic acid (CBDA) into cannabidiol (CBD) without the use of chemical reagents or catalysts.

(2) A cannabinoid that occurs naturally in the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis plant that was produced with the use of heat, light, or pressure from other phytocannabinoids, and without the use of any chemical reagents or catalysts. This includes, but is not limited to, the conversion of tetrahydrocannabinol into cannabinol (CBN) with the use of heat, light, or pressure, and without the use of any chemical reagents or catalysts.

(3) Any other chemical substance identified by the department in regulation. (bg) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2) Licensed by the department. (bh) “Unique identifier” means an alphanumeric code or designation used in reference to a specific quantity of cannabis or cannabis products that is issued pursuant to the track and trace program established by the department. (bi) “Youth center” has the same meaning as in

Section 11353.1 of the Health and Safety Code. (bj) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 8.

Section of the Business and Professions Code is amended to read: 26010. (

a) There is in the Business and Consumer Services Agency, the Department of Cannabis Control under the supervision and control of a director. The director shall administer and enforce the provisions of this division related to the department. (

b) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC.

Section 26010.5 of the Business and Professions Code is amended to read: 26010.5. (

a) The Governor shall appoint the director of the department, subject to confirmation by the Senate. The director shall serve under the direction and supervision of the Secretary of Business and Consumer Services and at the pleasure of the Governor. (

b) Every power granted to or duty imposed upon the director under this division may be exercised or performed in the name of the director by a deputy or assistant director or by a chief, subject to conditions and limitations that the director may prescribe. (c)

(1) The director may employ and appoint all employees necessary to properly administer the work of the department, in accordance with civil service laws and regulations.

(2) The Governor may also appoint a chief deputy director, a deputy director of equity and inclusion, and either a deputy director of legal affairs or a chief counsel to the department. These positions shall serve under the direction and supervision of the director and hold office at the pleasure of the Governor. (

d) The department has the power, duty, purpose, responsibility, and jurisdiction to regulate commercial cannabis activity as provided in this division. (

e) Upon the effective date of this section, whenever any reference to the “Medical Cannabis Regulation and Safety Act,” “Medical Marijuana Regulation and Safety Act,” or former

Chapter 3.5 (commencing with

Section 19300) of Division appears in any statute, regulation, contract, or in any other code, it shall be construed to refer to this division as it relates to medicinal cannabis and medicinal cannabis products. (

f) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 10.

Section of the Business and Professions Code is amended to read: 26040. (a)

(1) There is established in state government, in the Business and Consumer Services Agency, a Cannabis Control Appeals Panel which shall consist of the following members: (

A) One member appointed by the Senate Committee on Rules. (

B) One member appointed by the Speaker of the Assembly. (

C) Three members appointed by the Governor and subject to confirmation by a majority vote of all of the members elected to the Senate.

(2) Each member appointed by the Governor, at the time of their initial appointment, shall be a resident of a different county from the one in which either of the other members appointed by the Governor resides. Members of the panel shall receive an annual salary as provided for by

Chapter 6 (commencing with

Section 11550) of Part of Division of Title of the Government Code. (

b) The members of the panel may be removed from office by their appointing authority. (

c) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC.

Section 26180.5 of the Business and Professions Code is amended to read: 26180.5. (

a) No later than January 1, 2018, the Secretary of Business, Consumer Services, and Housing or their designee shall initiate work with the Legislature, the Department of Consumer Affairs, the Department of Food and Agriculture, the State Department of Public Health, and any other related departments to ensure that there is a safe and viable way to collect cash payments for taxes and fees related to the regulation of cannabis activity throughout the state. (

b) This

section shall remain operative only until July 1, 2026, and as of that date is repealed.

SEC.

Section 1916.12 of the Civil Code is amended to read: 1916.12. (

a) The Legislature finds that the economic environment of financial institutions has become increasingly volatile as a result of regulatory revisions enacted by the United States Congress and federal agencies including, but not necessarily limited to, the Comptroller of the Currency, the Federal Home Loan Bank Board, Federal Reserve Board, and the Depository Institutions Deregulation Committee. The Legislature further finds that deposit rate ceilings are being phased out while the cost of and competition for funds have escalated. It is the purpose of this

section to maintain the quality of competition between state-licensed and federally regulated financial institutions in the field of mortgage lending, as well as promote the convenience, advantage and best interests of California residents in their pursuit of adequate and available housing. In order to remain competitive and provide the optimum housing environment for the citizens of California, state institutions require the ability to respond in a timely manner to changes in mortgage lending parameters initiated at the federal level.

Local regulatory guidelines must promote continued parity between the state and federal levels in order to avoid creation of discriminatory burdens upon state institutions and to protect interests held by California citizens. It is the intent of the Legislature to eliminate past and prevent future inequities between state and federal financial institutions doing business in the State of California by creating a sensitive and responsive mortgage parity procedure. (

b) The Secretary of Business and Consumer Services or the secretary’s designee as defined by subdivision (

c) of

Section 1918.5, shall have the authority to prescribe rules and regulations extending to lenders who make loans upon the security of residential real property any right, power, privilege or duty relating to mortgage instruments that is equivalent to authority extended to federally regulated financial institutions by federal statute or regulation. (

c) In order to grant equivalent mortgage lending authority to state financial institutions to that which has been extended to federal financial institutions, the secretary or the secretary’s designee shall adopt such regulations within days of the effective date of the statute or regulation extending the comparable right, power, privilege, or duty to federally regulated financial institutions. (

d) The provisions of Sections 1916.5, 1916.6, 1916.7, 1916.8, and 1916.9, and any other provisions of law relating to the requirements for changes in the rate of interest on loans, shall not be applicable to loans made pursuant to the provisions of this

section and regulations promulgated thereunder. (

e) Any regulations adopted pursuant to this

section shall expire on January of the second succeeding year following the end of the calendar year in which the regulation was promulgated. Subsequent amendments to these regulations cannot extend this expiration date. (

f) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC.

Section 1918.5 of the Civil Code is amended to read: 1918.5.

As used in this chapter: (a) “Evidence of debt” means a note or negotiable instrument. (b) “Secretary” means the Secretary of Business and Consumer Services. (c) “Secretary’s designee” means the director of a department within the agency that licenses or regulates the institutions, organizations, or persons engaged in a business related to or affecting compliance with this chapter. (d) “Security document” means a mortgage contract, deed of trust, real estate sales contract, or any note or negotiable instrument issued in connection therewith, when its purpose is to finance the purchase or construction of real property occupied or intended to be occupied by the borrower, containing four or fewer residential units or on which four or fewer residential units are to be constructed. (

e) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 14.

Section of the Civil Code is amended to read: 5405. (

a) To assist with the identification of common interest developments, each association, whether incorporated or unincorporated, shall submit to the Secretary of State, on a form and for a fee not to exceed thirty dollars ($30) that the Secretary of State shall prescribe, the following information concerning the association and the development that it manages:

(1) A statement that the association is formed to manage a common interest development under the Davis-Stirling Common Interest Development Act.

(2) The name of the association.

(3) The street address of the business or corporate office of the association, if any.

(4) The street address of the association’s onsite office, if different from the street address of the business or corporate office, or if there is no onsite office, the street address of the responsible officer or managing agent of the association.

(5) The name, address, and either the daytime telephone number or email address of the president of the association, other than the address, telephone number, or email address of the association’s onsite office or managing agent.

(6) The name, street address, and daytime telephone number of the association’s managing agent, if any.

(7) The county, and, if in an incorporated area, the city in which the development is physically located. If the boundaries of the development are physically located in more than one county, each of the counties in which it is located.

(8) If the development is in an unincorporated area, the city closest in proximity to the development.

(9) The front street and nearest cross street of the physical location of the development.

(10) The type of common interest development managed by the association.

(11) The number of separate interests in the development. (

b) The association shall submit the information required by this

section as follows:

(1) By incorporated associations, within days after the filing of its original articles of incorporation, and thereafter at the time the association files its statement of principal business activity with the Secretary of State pursuant to

Section of the Corporations Code.

(2) By unincorporated associations, in July 2003, and in that same month biennially thereafter. Upon changing its status to that of a corporation, the association shall comply with the filing deadlines in paragraph (1). (

c) The association shall notify the Secretary of State of any change in the street address of the association’s onsite office or of the responsible officer or managing agent of the association in the form and for a fee prescribed by the Secretary of State, within days of the change. (

d) The penalty for an incorporated association’s noncompliance with the initial or biennial filing requirements of this

section shall be suspension of the association’s rights, privileges, and powers as a corporation and monetary penalties, to the same extent and in the same manner as suspension and monetary penalties imposed pursuant to

Section of the Corporations Code. (

e) The statement required by this

section may be filed, notwithstanding suspension of the corporate powers, rights, and privileges under this

section or under provisions of the Revenue and Taxation Code. Upon the filing of a statement under this

section by a corporation that has suffered suspension under this section, the Secretary of State shall certify that fact to the Franchise Tax Board and the corporation may thereupon be relieved from suspension, unless the corporation is held in suspension by the Franchise Tax Board by reason of

Section 23301, 23301.5, or of the Revenue and Taxation Code. (

f) The Secretary of State shall make the information submitted pursuant to paragraph (5) of subdivision (

a) available only for governmental purposes and only to Members of the Legislature and the Business and Consumer Services Agency, upon written request. All other information submitted pursuant to this

section shall be subject to public inspection pursuant to the California Public Records Act (Division 10 (commencing with

Section 7920.000) of Title of the Government Code). The information submitted pursuant to this

section shall be made available for governmental or public inspection. (

g) Whenever any form is filed pursuant to this section, it supersedes any previously filed form. (

h) The Secretary of State may destroy or otherwise dispose of any form filed pursuant to this

section after it has been superseded by the filing of a new form. (

i) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 15.

Section of the Financial Code is amended to read: 300. (

a) In this section: (1) “Business and industrial development corporation” means a corporation licensed under Division 15 (commencing with

Section 31000). (2) “Payment instrument” has the same meaning as set forth in

Section 2003. (3) “Stored Value” has the same meaning as set forth in subdivision (

x) of

Section 2003. (

b) There is in the state government, in the Business and Consumer Services Agency, a Department of Financial Protection and Innovation, which has charge of the execution of, among other laws, the laws of this state relating to any of the following: (1) banks or trust companies or the banking or trust business; (2) savings associations or the savings association business; (3) credit unions or the credit union business; (4) persons who engage in the business of receiving money for transmission or such business; (5) issuers of stored value or such business; (6) issuers of payment instruments or the payment instrument business; (7) business and industrial development corporations or the business and industrial development corporation business; (8) insurance premium finance agencies or the insurance premium finance business; (9) persons offering or making any contract constituting bucketing; (10) persons offering or selling off-exchange commodities; (11) deferred deposit originators; (12) finance lenders and brokers; (13) residential mortgage lenders and servicers; (14) capital access companies; (15) check sellers, bill payers, and proraters; (16) securities issuers, broker-dealers, agents, investment advisers, and investment adviser representatives; (17) mortgage loan originators employed or supervised by finance lenders or residential mortgage lenders; (18) escrow agents; (19) franchisors; (20) persons holding securities as custodians on behalf of securities owners; (21) persons offering or providing consumer financial products or services in this state; and

(22) PACE program administrators. (

c) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 16.

Section of the Financial Code is amended to read: 1514. (

a) A commercial bank may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to

Part 2 (commencing with

Section 25100) of Division of Title of the Corporations Code, if the officers and employees of the bank who sell these securities meet such standards with respect to training, experience, and sales practices as established by the commissioner or the commissioner’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C.,

Sec. 80a-1 et seq.). (

b) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 17.

Section of the Financial Code is amended to read: 14382. (

a) The Credit Union Advisory Committee consists of seven members. (

b) The members of the Credit Union Advisory Committee shall be appointed by the Secretary of Business and Consumer Services. (

c) The term of a member of the Credit Union Advisory Committee is two years. However, a member may be reappointed. (

d) Membership in the Credit Union Advisory Committee is voluntary. No person is required to accept an appointment to the Credit Union Advisory Committee, and any member may resign by filing a resignation with the commissioner. (

e) No member of the Credit Union Advisory Committee shall receive any compensation, reimbursement for expenses, or other payment from the state in connection with service on the Credit Union Advisory Committee. (

f) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC.

Section 14652.5 of the Financial Code is amended to read: 14652.5. (

a) A credit union may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to

Part 2 (commencing with

Section 25100) of Division of Title of the Corporations Code, if the officers and employees of the credit union who sell these securities meet such standards with respect to training, experience, and sales practices as established by the commissioner or the commissioner’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C.,

Sec. 80a-1 et seq.). (

b) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC.

Section 18022.5 of the Financial Code is amended to read: 18022.5. (

a) An industrial loan company may organize, sponsor, operate, control, or render investment advice to, an investment company, or underwrite, distribute, or sell securities of any investment company which has qualified to sell its securities in this state pursuant to

Part 2 (commencing with

Section 25100) of Division 1, Title of the Corporations Code, if the officers and employees of the industrial loan company who sell these securities meet such standards with respect to training experience, and sales practices as established by the commissioner or the commissioner’s designee. For the purpose of this section, “investment company” means an investment company as defined in the Investment Company Act of 1940 (15 U.S.C.,

Sec. 80a-1 et seq.). (

b) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 20.

Section of the Food and Agricultural Code is amended to read: 513. (

a) The department shall ensure the inclusion of socially disadvantaged farmers and ranchers, including socially disadvantaged farmers and ranchers in urbanized areas, in the development, adoption, implementation, and enforcement of food and agriculture laws, regulations, and policies and programs. (

b) The secretary shall create a position within the department’s executive office to support the efforts of this

section and

Section 514. The person appointed to that position shall report to the secretary. (

c) The department shall do all of the following:

(1) Consult with the Secretaries of the California Environmental Protection Agency, the Natural Resources Agency, the Business, Consumer Services, and Housing Agency, and the California Health and Human Services Agency, and all other interested members of the public and private sectors of the state on opportunities for socially disadvantaged farmers and ranchers and to coordinate state programs.

(2) Disseminate information regarding opportunities provided by, including, but not limited to, the United States Department of Agriculture, the United States Environmental Protection Agency, the General Accounting Office, the Office of Management and Budget, and other federal agencies for socially disadvantaged farmers and ranchers.

(3) Evaluate boards, committees, commissions, and advisory panels created pursuant to this code for opportunities for inclusion of socially disadvantaged farmers and ranchers, except those established pursuant to

Article 8 (commencing with

Section 58841) of

Chapter of Part of Division 21,

Article 7 (commencing with

Section 59721) of

Chapter of Part of Division 21, and Division 22 (commencing with

Section 63901). (

d) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 21.

Section is added to the Food and Agricultural Code , to read: 513. (

b) The secretary shall create a position within the department’s executive office to support the efforts of this

section and

Section 514. The person appointed to that position shall report to the secretary. (

c) The department shall do all of the following:

(1) Consult with the Secretaries of the California Environmental Protection Agency, the Natural Resources Agency, the California Housing and Homelessness Agency, and the California Health and Human Services Agency, and all other interested members of the public and private sectors of the state on opportunities for socially disadvantaged farmers and ranchers and to coordinate state programs.

Article 8 (commencing with

Section 58841) of

Chapter of Part of Division 21,

Article 7 (commencing with

Section 59721) of

Chapter of Part of Division 21, and Division 22 (commencing with

Section 63901). (

d) This

section shall become operative on July 1, 2026.

SEC.

Section 8587.11 of the Government Code is amended to read: 8587.11. (

a) There is in state government, within the office, both of the following:

(1) The California Earthquake Early Warning Program.

(2) The California Earthquake Early Warning Advisory Board. (

b) The following

definitions apply to this

section and

Section 8587.12: (1) “Board” means the California Earthquake Early Warning Advisory Board. (2) “Program” means the California Earthquake Early Warning Program. (3) “System” means the statewide earthquake early warning system. (c)

(1) The board shall be composed of the following eight members: (

A) Seven voting members, as follows: (

i) The Secretary of the Natural Resources Agency, or designee. (ii) The Secretary of California Health and Human Services, or designee. (iii) The Secretary of Transportation, or designee. (iv) The Secretary of Business, Consumer Services, and Housing, or designee. (

v) One member who is appointed by, and serves at the pleasure of, the Speaker of the Assembly and represents the interests of private businesses. (vi) One member who is appointed by, and serves at the pleasure of, the Governor and represents the utilities industry. (vii) One member who is appointed by, and serves at the pleasure of, the Senate Committee on Rules and represents county government. (

B) The Chancellor of the California State University, or designee, shall serve as a nonvoting member of the board.

(2) The President of the University of California, or designee, may serve as a nonvoting member of the board.

(3) The members of the board shall serve without compensation, but shall be reimbursed for actual and reasonable travel and meal expenses to attend board meetings. (d)

(1) The board shall convene periodically and advise the director on all aspects of the program, including, but not limited to, the following functional areas of the program: (

A) System operations. (

B) Research and development. (

C) Finance and investment. (

D) Training and education.

(2) The board shall utilize committees, groups, and organizations, including, but not limited to, the California Institute of Technology, the California Geological Survey, the University of California, the United States Geological Survey, and entities participating in the critical infrastructure sectors to fulfill the objectives of the program by supporting the functional areas of the system.

(3) The board shall inform the public regarding, and provide the public with the opportunity to engage the board on, the development and implementation of the system.

(4) The board shall consult with program participants, state agencies, departments, boards and commissions, private businesses, postsecondary educational institutions, and subject matter experts, as necessary, to advise the board on the development, implementation, and maintenance of the system. (e)

(1) Except as otherwise provided by law, the California Integrated Seismic Network shall be responsible for the generation of an earthquake early warning alert and related system operations.

(2) The board shall, in conjunction with the director, determine the appropriate methods to provide the public with an earthquake early warning alert. (f)

(1) The board shall comply with the Bagley-Keene Open Meeting Act (Article 9 (commencing with

Section 11120) of

Chapter of Part of Division 3) and the California Public Records Act (Division 10 (commencing with

Section 7920.000) of Title 1).

(2) Notwithstanding any law, including, but not limited to, the California Public Records Act (Division 10 (commencing with

Section 7920.000) of Title 1), any information in a public record that is a trade secret, as that term is defined in

Section 3426.1 of the Civil Code, of a private entity cooperating with the board or participating in the system or with the program is confidential and shall not be disclosed. (

g) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 8587.11 is added to the Government Code , to read: 8587.11. (

a) There is in state government, within the office, both of the following:

(1) The California Earthquake Early Warning Program.

(2) The California Earthquake Early Warning Advisory Board. (

b) The following

definitions apply to this

section and

(1) The board shall be composed of the following eight members: (

A) Seven voting members, as follows: (

i) The Secretary of the Natural Resources Agency, or designee. (ii) The Secretary of California Health and Human Services, or designee. (iii) The Secretary of Transportation, or designee. (iv) The Secretary of California Housing and Homelessness, or designee. (

B) The Chancellor of the California State University, or designee, shall serve as a nonvoting member of the board.

(2) The President of the University of California, or designee, may serve as a nonvoting member of the board.

(3) The members of the board shall serve without compensation, but shall be reimbursed for actual and reasonable travel and meal expenses to attend board meetings. (d)

(1) The board shall convene periodically and advise the director on all aspects of the program, including, but not limited to, the following functional areas of the program: (

A) System operations. (

B) Research and development. (

C) Finance and investment. (

D) Training and education.

(3) The board shall inform the public regarding, and provide the public with the opportunity to engage the board on, the development and implementation of the system.

(1) Except as otherwise provided by law, the California Integrated Seismic Network shall be responsible for the generation of an earthquake early warning alert and related system operations.

(2) The board shall, in conjunction with the director, determine the appropriate methods to provide the public with an earthquake early warning alert. (f)

(1) The board shall comply with the Bagley-Keene Open Meeting Act (Article 9 (commencing with

Section 11120) of

Chapter of Part of Division 3) and the California Public Records Act (Division 10 (commencing with

Section 7920.000) of Title 1).

(2) Notwithstanding any law, including, but not limited to, the California Public Records Act (Division 10 (commencing with

Section 7920.000) of Title 1), any information in a public record that is a trade secret, as that term is defined in

Section 3426.1 of the Civil Code, of a private entity cooperating with the board or participating in the system or with the program is confidential and shall not be disclosed. (

g) This

section shall become operative on July 1, 2026.

SEC.

Section 8876.7 of the Government Code is amended to read: 8876.7. In carrying out its responsibilities under this chapter, the Seismic Safety Commission, in close consultation with the Transportation Agency, the Office of Emergency Services, and the Business, Consumer Services and Housing Agency, may do the following: (

a) Monitor the work of the center on behalf of the state. (

b) Produce and deliver for each year that the center is in operation, an independent evaluation of the work conducted at the center as it pertains to the objectives of the center and reducing earthquake losses and earthquake risk in the state recognizing that as a national center it will undertake basic research of national and international consequence as well. The report shall include the following tasks:

(1) Interpret the results of research to indicate how the research may affect state law and policy.

(2) Recommend ways to promote the application of research.

(3) Recommend priorities that would contribute to achieving the center’s objectives, provide direct benefits to California residents and businesses, and lead to the completion of specific recommendations in the state’s earthquake risk reduction program. (

c) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 8876.7 is added to the Government Code , to read: 8876.7. In carrying out its responsibilities under this chapter, the Seismic Safety Commission, in close consultation with the Transportation Agency, the Office of Emergency Services, and the Secretary of California Housing and Homelessness, may do the following: (

a) Monitor the work of the center on behalf of the state. (

(1) Interpret the results of research to indicate how the research may affect state law and policy.

(2) Recommend ways to promote the application of research.

c) This

section shall become operative on July 1, 2026.

SEC.

Section 11546.1 of the Government Code is amended to read: 11546.1. The Department of Technology shall improve the governance and implementation of information technology by standardizing reporting relationships, roles, and responsibilities for setting information technology priorities. (a)

(1) Each state agency shall have a chief information officer who is appointed by the head of the state agency, or by the head’s designee, subject to the approval of the Department of Technology.

(2) A chief information officer appointed under this subdivision shall do all of the following: (

A) Oversee the information technology portfolio and information technology services within their state agency through the operational oversight of information technology budgets of departments, boards, bureaus, and offices within the state agency. (

B) Develop the enterprise architecture for their state agency, subject to the review and approval of the Department of Technology, to rationalize, standardize, and consolidate information technology applications, assets, infrastructure, data, and procedures for all departments, boards, bureaus, and offices within the state agency. (

C) Ensure that all departments, boards, bureaus, and offices within the state agency are in compliance with the state information technology policy. (b)

(1) Each state entity shall have a chief information officer who is appointed by the head of the state entity.

(2) A chief information officer appointed under this subdivision shall do all of the following: (

A) Supervise all information technology and telecommunications activities within their state entity, including, but not limited to, information technology, information security, and telecommunications personnel, contractors, systems, assets, projects, purchases, and contracts. (

B) Ensure the entity conforms with state information technology and telecommunications policy and enterprise architecture. (

c) Each state agency shall have an information security officer appointed by the head of the state agency, or the head’s designee, subject to the approval by the Department of Technology. The state agency’s information security officer appointed under this subdivision shall report to the state agency’s chief information officer. (

d) Each state entity shall have an information security officer who is appointed by the head of the state entity. An information security officer shall report to the chief information officer of their state entity. The Department of Technology shall develop specific qualification criteria for an information security officer. If a state entity cannot fund a position for an information security officer, the entity’s chief information officer shall perform the duties assigned to the information security officer. The chief information officer shall coordinate with the Department of Technology for any necessary support. (e)

(1) For purposes of this section, “state agency” means the Transportation Agency, Department of Corrections and Rehabilitation, Department of Veterans Affairs, Business, Consumer Services, and Housing Agency, Natural Resources Agency, California Health and Human Services Agency, California Environmental Protection Agency, Labor and Workforce Development Agency, and Department of Food and Agriculture.

(2) For purposes of this section, “state entity” means an entity within the executive branch that is under the direct authority of the Governor, including, but not limited to, all departments, boards, bureaus, commissions, councils, and offices that are not defined as a “state agency” pursuant to paragraph (1). (

f) A state entity that is not defined under subdivision (

e) may voluntarily comply with any of the requirements of Sections 11546.2 and 11546.3 and may request assistance from the Department of Technology to do so. (

g) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 11546.1 is added to the Government Code , to read: 11546.1. The Department of Technology shall improve the governance and implementation of information technology by standardizing reporting relationships, roles, and responsibilities for setting information technology priorities. (a)

(1) Each state agency shall have a chief information officer who is appointed by the head of the state agency, or by the head’s designee, subject to the approval of the Department of Technology.

(2) A chief information officer appointed under this subdivision shall do all of the following: (

C) Ensure that all departments, boards, bureaus, and offices within the state agency are in compliance with the state information technology policy. (b)

(1) Each state entity shall have a chief information officer who is appointed by the head of the state entity.

(2) A chief information officer appointed under this subdivision shall do all of the following: (

B) Ensure the entity conforms with state information technology and telecommunications policy and enterprise architecture. (

(1) For purposes of this section, “state agency” means the Transportation Agency, Department of Corrections and Rehabilitation, Department of Veterans Affairs, Business and Consumer Services Agency, California Housing and Homelessness Agency, Natural Resources Agency, California Health and Human Services Agency, California Environmental Protection Agency, Labor and Workforce Development Agency, and Department of Food and Agriculture.

f) A state entity that is not defined under subdivision (

e) may voluntarily comply with any of the requirements of Sections 11546.2 and 11546.3 and may request assistance from the Department of Technology to do so. (

g) This

section shall become operative on July 1, 2026.

SEC. 28.

Section of the Government Code is amended to read: 11550. (

a) Effective January 1, 1988, an annual salary of ninety-one thousand fifty-four dollars ($91,054) shall be paid to each of the following:

(1) Director of Finance.

(2) Secretary of Transportation.

(3) Secretary of the Natural Resources Agency.

(4) Secretary of California Health and Human Services.

(5) Secretary of Business, Consumer Services, and Housing.

(6) Commissioner of the California Highway Patrol.

(7) Secretary of the Department of Corrections and Rehabilitation.

(8) Secretary of Food and Agriculture.

(9) Secretary of Veterans Affairs.

(10) Secretary of Labor and Workforce Development.

(11) Secretary for Environmental Protection.

(12) Secretary of Government Operations. (

b) The annual compensation provided by this

section shall be increased in any fiscal year in which a general salary increase is provided for state employees. The amount of the increase provided by this

section shall be comparable to, but shall not exceed, the percentage of the general salary increases provided for state employees during that fiscal year. (

c) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 29.

Section is added to the Government Code , to read: 11550. (

a) Effective January 1, 1988, an annual salary of ninety-one thousand fifty-four dollars ($91,054) shall be paid to each of the following:

(1) Director of Finance.

(2) Secretary of Transportation.

(3) Secretary of the Natural Resources Agency.

(4) Secretary of California Health and Human Services.

(5) Secretary of California Housing and Homelessness.

(6) Commissioner of the California Highway Patrol.

(7) Secretary of the Department of Corrections and Rehabilitation.

(8) Secretary of Food and Agriculture.

(9) Secretary of Veterans Affairs.

(10) Secretary of Labor and Workforce Development.

(11) Secretary for Environmental Protection.

(12) Secretary of Government Operations.

(13) Secretary of Business and Consumer Services. (

b) The annual compensation provided by this

section shall be increased in any fiscal year in which a general salary increase is provided for state employees. The amount of the increase provided by this

section shall be comparable to, but shall not exceed, the percentage of the general salary increases provided for state employees during that fiscal year. (

c) This

section shall become operative on July 1, 2026.

SEC. 30.

Section of the Government Code is amended to read: 12800. (

a) There are in the state government the following agencies: Business, Consumer Services, and Housing; Transportation; California Environmental Protection; California Health and Human Services; Labor and Workforce Development; Natural Resources; Government Operations; and Corrections and Rehabilitation. (

b) The secretary of an agency shall be generally responsible for the sound fiscal management of each department, office, or other unit within the agency. The secretary shall review and approve the proposed budget of each department, office, or other unit. The secretary shall hold the head of each department, office, or other unit responsible for management control over the administrative, fiscal, and program performance of their department, office, or other unit.

The secretary shall review the operations and evaluate the performance at appropriate intervals of each department, office, or other unit, and shall seek continually to improve the organization structure, the operating policies, and the management information systems of each department, office, or other unit. (

c) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 31.

Section is added to the Government Code , to read: 12800. (

a) There are in the state government the following agencies: Business and Consumer Services; California Housing and Homelessness; Transportation; California Environmental Protection; California Health and Human Services; Labor and Workforce Development; Natural Resources; Government Operations; and Corrections and Rehabilitation. (

c) This

section shall become operative on July 1, 2026.

SEC. 32.

Section of the Government Code is amended to read: 12804. (

a) There is in the state government the Business, Consumer Services, and Housing Agency. (

b) The Business, Consumer Services, and Housing Agency shall consist of the following: the Department of Consumer Affairs, the Department of Real Estate, the Department of Housing and Community Development, the California Housing Finance Agency, the Civil Rights Department, the Department of Financial Protection and Innovation, the Department of Alcoholic Beverage Control, the Alcoholic Beverage Control Appeals Board, the California Horse Racing Board, the Department of Cannabis Control, and the Cannabis Control Appeals Panel. (

c) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 12804.1 is added to the Government Code , to read: 12804.1. (

a) Beginning July 1, 2026, the California Housing and Homelessness Agency and the Business and Consumer Services Agency, along with their respective departments, shall 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. (

b) The Secretary of Housing and Homelessness and the Secretary of Business and Consumer Services shall maintain and expand upon data, policy, and programmatic partnerships between the departments within the California Housing and Homelessness Agency and the Business and Consumer Services Agency and consider opportunities to improve coordination and alignment. (

c) This

section shall become operative on July 1, 2026.

SEC.

Section 12804.2 is added to the Government Code , to read: 12804.2. (

a) Beginning July 1, 2026, there is in state government the Business and Consumer Services Agency. (

b) The Business and Consumer Services Agency shall consist of all of the following:

(1) The Alcoholic Beverage Control Appeals Board.

(2) The California Horse Racing Board.

(3) The Cannabis Control Appeals Panel.

(4) The Department of Alcoholic Beverage Control.

(5) The Department of Cannabis Control.

(6) The Department of Consumer Affairs.

(7) The Department of Financial Protection and Innovation.

(8) The Department of Real Estate. (c)

(1) On July 1, 2026, the Business and Consumer Services Agency succeeds to and is vested with all the duties, powers, purposes, personnel, and responsibilities vested in the Business, Consumer Services, and Housing Agency as they relate to the entities listed in subdivision (b).

(2) With respect to any of the functions transferred to the Business and Consumer Services Agency pursuant to this subdivision, whenever any reference to the Business, Consumer Services, and Housing Agency appears in any statute, regulation, or contract, it shall be deemed to refer to the Business and Consumer Services Agency. (d)

(1) A state agency, department, or entity may take actions prior to July 1, 2026, that are necessary to ensure that the provisions in this

section become operative on July 1, 2026, and are implemented in a timely fashion.

(2) The actions described in this subdivision may include, but are not limited to, reassignment of duties between state agencies, departments, or entities pursuant to

Section 12080.3, actions relating to planning for the changes provided in the reorganization plan, and the expenditure of funds necessary for the transfer or authority and responsibilities accomplished by the reorganization plan. (

e) This

section shall become operative on July 1, 2026.

SEC.

Section 12804.3 is added to the Government Code , to read: 12804.3. (

a) The Governor, upon the recommendation of the Secretary of Business and Consumer Services, may appoint up to three deputy secretaries who shall serve at the pleasure of the Governor. (

b) The deputy secretaries shall be exempt from civil service consistent with subdivision (

f) of

Section of

Article VII of the California Constitution. (

c) This

section shall become operative on July 1, 2026.

SEC.

Section 12804.4 is added to the Government Code , to read: 12804.4. (

a) All employees serving in state civil service, including temporary employees, who are engaged in the performance of functions transferred to the Business and Consumer Services Agency pursuant to

Section 12804.2 shall be transferred to the Business and Consumer Services Agency. (

b) The status, positions, and rights of those persons shall not be affected by their transfer and shall continue to be retained by them pursuant to the State Civil Service Act (Part 2 (commencing with

Section 18500) of Division 5), except as to positions for which the duties are vested in a position exempt from civil service. The personnel records of all transferred employees shall be transferred to the Business and Consumer Services Agency. (

c) This

section shall become operative on July 1, 2026.

SEC.

Section 12804.5 of the Government Code is amended to read: 12804.5. (

a) The Secretary of Business, Consumer Services, and Housing is hereby authorized to develop programs for technical and fiscal assistance to facilitate nonprofit, self-help community vegetable gardens and related supporting activities. (

b) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 38.

Section of the Government Code is amended to read: 12855. (

a) For the purpose of this chapter, “agency” means the Business, Consumer Services, and Housing Agency, the California Environmental Protection Agency, the California Health and Human Services Agency, the Natural Resources Agency, the Labor and Workforce Development Agency, the Government Operations Agency, the Transportation Agency, or the Corrections and Rehabilitation Agency, and “secretary” means the secretary of any such agency. (

b) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 39.

Section is added to the Government Code , to read: 12855. (

a) For the purpose of this chapter, “agency” means the California Housing and Homelessness Agency, the Business and Consumer Services Agency, the California Environmental Protection Agency, the California Health and Human Services Agency, the Natural Resources Agency, the Labor and Workforce Development Agency, the Government Operations Agency, the Transportation Agency, or the Corrections and Rehabilitation Agency, and “secretary” means the secretary of any such agency. (

b) This

section shall become operative on July 1, 2026.

SEC. 40.

Section of the Government Code is amended to read: 12856. (

a) The Governor, upon the recommendation of the Secretary of Business, Consumer Services, and Housing, may appoint up to three deputies for the secretary. (

b) In addition to any other provision of law, the Secretary of Business, Consumer Services, and Housing may appoint an assistant, who is exempt from the civil service laws. The secretary shall prescribe the duties of the appointed assistant and shall fix the salary of such assistant subject to the approval of the Director of Finance. The appointed assistant shall serve at the pleasure of the secretary. (

c) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 41.

Section of the Government Code is amended to read: 12895. (

a) There is in the Business and Consumer Services Agency a Department of Financial Protection and Innovation, which has the responsibility for administering various laws. In order to effectively support the Department of Financial Protection and Innovation in the administration of these laws, there is hereby established the Financial Protection Fund, as described further in

Section of the Financial Code. All expenses and salaries of the Department of Financial Protection and Innovation shall be paid out of the Financial Protection Fund, upon appropriation by the Legislature for these purposes. (

b) All the duties and responsibilities to be transferred and any remaining balances of the State Corporations Fund and Financial Institutions Fund, upon appropriation by the Legislature, shall be transferred to the Financial Protection Fund, which is hereby created and designated the successor fund. The State Corporations Fund and Financial Institutions Fund are abolished. (

c) Funds appropriated from the Financial Protection Fund and made available for expenditure for any law or program of the Department of Financial Protection and Innovation may come from the following:

(1) Fees and any other amounts charged and collected pursuant to

Section of the Corporations Code, except for fees and other amounts charged and collected pursuant to subdivisions (

o) to (r), inclusive, of

Section of the Corporations Code.

(2) Fees collected pursuant to subdivisions (a), (b), (c), and (

d) of

Section 25608.1 of the Corporations Code. (

d) This

section shall not apply to moneys collected or received by the commissioner under Division 5 (commencing with

Section 14000) of the Financial Code. (

e) On and after the operative date of this subdivision, any reference in any law to the Financial Institutions Fund shall be deemed a reference to the Financial Protection Fund, and any reference in any law to the State Corporations Fund shall be deemed a reference to the Financial Protection Fund. (

f) On and after the operative date of this subdivision, any reference in any law to the Department of Business Oversight shall be deemed a reference to the Department of Financial Protection and Innovation. (

g) This subdivision shall become operative on the date that

an act adding Division 25 (commencing with

Section 100000) to the Financial Code takes effect.

(1) On and after the operative date of this subdivision, all the duties, responsibilities and remaining balances of the Debt Collection Licensing Fund shall be transferred to the Financial Protection Fund.

(2) On or after the operative date of this subdivision, fines and penalties collected pursuant to Division 25 (commencing with

Section 100000) of the Financial Code shall be made available for expenditure for any law or program of the Department of Financial Protection and Innovation.

(3) On and after the operative date of this subdivision, the Debt Collection Licensing Fund is abolished.

(4) On and after the operative date of this subdivision, any reference to the Debt Collection Licensing Fund shall be deemed a reference to the Financial Protection Fund.

(5) If

an act adding Division to the Financial Code does not take effect, this subdivision shall become inoperative and is effectively repealed beginning January 1, 2021. (

h) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 42.

Section of the Government Code is amended to read: 12896. (

a) This

section applies to every action brought in the name of the people of the State of California by the Commissioner of Financial Protection and Innovation before, on, or after the effective date of this section, when enforcing provisions of those laws administered by the Commissioner of Financial Protection and Innovation which authorize the Commissioner of Financial Protection and Innovation to seek a permanent or preliminary injunction, restraining order, or writ of mandate, or the appointment of a receiver, monitor, conservator, or other designated fiduciary or officer of the court, except actions brought against any of the licensees specified in paragraphs (1) through (8), inclusive, of subdivision (

b) of

Section of the Financial Code that are governed by other law. Upon a proper showing, a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted and a receiver, monitor, conservator, or other designated fiduciary or officer of the court may be appointed for the defendant or the defendant’s assets, or any other ancillary relief may be granted as appropriate.

The court may order that the expenses and fees of the receiver, monitor, conservator, or other designated fiduciary or officer of the court, be paid from the property held by the receiver, monitor, conservator, or other court-designated fiduciary or officer, but neither the state, the Business and Consumer Services Agency, nor the Department of Financial Protection and Innovation shall be liable for any of those expenses and fees, unless expressly provided for by written contract. (

b) The receiver, monitor, conservator, or other designated fiduciary or officer of the court may do any of the following subject to the direction of the court:

(1) Sue for, collect, receive, and take into possession all the real and personal property derived by any unlawful means, including property with which that property or the proceeds thereof has been commingled if that property or the proceeds thereof cannot be identified in kind because of the commingling.

(2) Take possession of all books, records, and documents relating to any unlawfully obtained property and the proceeds thereof. In addition, they shall have the same right as a defendant to request, obtain, inspect, copy, and obtain copies of books, records, and documents maintained by third parties that relate to unlawfully obtained property and the proceeds thereof.

(3) Transfer, encumber, manage, control, and hold all property subject to the receivership, including the proceeds thereof, in the manner directed or ratified by the court.

(4) Avoid a transfer of any interest in any unlawfully obtained property including the proceeds thereof to any person who committed, aided or abetted, or participated in the commission of unlawful acts or who had knowledge that the property had been unlawfully obtained.

(5) Avoid a transfer of any interest in any unlawfully obtained property including the proceeds thereof made with the intent to hinder or delay the recovery of that property or any interest in it by the receiver or any person from whom the property was unlawfully obtained.

(6) Avoid a transfer of any interest in any unlawfully obtained property including the proceeds thereof that was made within one year before the date of the entry of the receivership order if less than a reasonably equivalent value was given in exchange for the transfer, except that a bona fide transferee for value and without notice that the property had been unlawfully obtained may retain the interest transferred until the value given in exchange for the transfer is returned to the transferee.

(7) Avoid a transfer of any interest in any unlawfully obtained property including the proceeds thereof made within days before the date of the entry of the receivership order to a transferee from whom the defendant unlawfully obtained some property if (

A) the receiver establishes that the avoidance of the transfer will promote a fair pro rata distribution of restitution among all people from whom defendants unlawfully obtained property and (

B) the transferee cannot establish that the specific property transferred was the same property which had been unlawfully obtained from the transferee.

(8) Exercise any power authorized by statute or ordered by the court. (

c) No person with actual or constructive notice of the receivership shall interfere with the discharge of the receiver’s duties. (

d) No person may file any action or enforce or create any lien, or cause to be issued, served, or levied any summons, subpoena, attachment, or writ of execution against the receiver or any property subject to the receivership without first obtaining prior court approval upon motion with notice to the receiver and the Commissioner of Financial Protection and Innovation. Any legal procedure described in this subdivision commenced without prior court approval is void except as to a bona fide purchaser or encumbrancer for value and without notice of the receivership.

No person without notice of the receivership shall incur any liability for commencing or maintaining any legal procedure described by this subdivision. (

e) The court has jurisdiction of all questions arising in the receivership proceedings and may make any orders and judgments as may be required, including orders after noticed motion by the receiver to avoid transfers as provided in paragraphs (4), (5), (6), and (7) of subdivision (b). (

f) This

section is cumulative to all other provisions of law. (

g) If any provision of this

section or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of this

section which can be given effect without the invalid provision or application, and to this end the provisions of this

section are severable. (

h) The recordation of a copy of the receivership order imparts constructive notice of the receivership in connection with any matter involving real property located in the county in which the receivership order is recorded. (

i) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 43.

Section of the Government Code is amended to read: 12901. (

a) There is in the state government, in the Business, Consumer Services, and Housing Agency, the Civil Rights Department. The department is under the direction of an executive officer known as the Director of Civil Rights, who is appointed by the Governor, subject to confirmation by the Senate, and who holds office at the pleasure of the Governor. The annual salary of the director is provided for by

Chapter 6 (commencing with

Section 11550) of Part of Division of Title 2. (

b) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 44.

Section is added to the Government Code , to read: 12901. (

a) There is in the state government, in the California Housing and Homelessness Agency, the Civil Rights Department. The department is under the direction of an executive officer known as the Director of Civil Rights, who is appointed by the Governor, subject to confirmation by the Senate, and who holds office at the pleasure of the Governor. The annual salary of the director is provided for by

Chapter 6 (commencing with

Section 11550) of Part of Division of Title 2. (

b) This

section shall become operative on July 1, 2026.

SEC. 45.

Section of the Government Code is amended to read: 12944. (

a) It shall be unlawful for a licensing board to require any examination or establish any other qualification for licensing that has an adverse impact on any class by virtue of its race, creed, color, national origin or ancestry, sex, gender, gender identity, gender expression, age, medical condition, genetic information, physical disability, mental disability, reproductive health decisionmaking, or sexual orientation, unless the practice can be demonstrated to be job related.

Where the council, after hearing, determines that an examination is unlawful under this subdivision, the licensing board may continue to use and rely on the examination until such time as judicial review by the superior court of the determination is exhausted. If an examination or other qualification for licensing is determined to be unlawful under this section, that determination shall not void, limit, repeal, or otherwise affect any right, privilege, status, or responsibility previously conferred upon any person by the examination or by a license issued in reliance on the examination or qualification. (

b) It shall be unlawful for a licensing board to fail or refuse to make reasonable accommodation to an individual’s mental or physical disability or medical condition. (

c) It shall be unlawful for any licensing board, unless specifically acting in accordance with federal equal employment opportunity guidelines or regulations approved by the council, to print or circulate or cause to be printed or circulated any publication, or to make any non-job-related inquiry, either verbal or through use of an application form, which expresses, directly or indirectly, any limitation, specification, or discrimination as to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, sex, gender, gender identity, gender expression, age, reproductive health decisionmaking, or sexual orientation or any intent to make any such limitation, specification, or discrimination.

Nothing in this subdivision shall prohibit any licensing board from making, in connection with prospective licensure or certification, an inquiry as to, or a request for information regarding, the physical fitness of applicants if that inquiry or request for information is directly related and pertinent to the license or the licensed position the applicant is applying for.

Nothing in this subdivision shall prohibit any licensing board, in connection with prospective examinations, licensure, or certification, from inviting individuals with physical or mental disabilities to request reasonable accommodations or from making inquiries related to reasonable accommodations. (

d) It is unlawful for a licensing board to discriminate against any person because the person has filed a complaint, testified, or assisted in any proceeding under this part. (

e) It is unlawful for any licensing board to fail to keep records of applications for licensing or certification for a period of two years following the date of receipt of the applications. (

f) As used in this section, “licensing board” means any state board, agency, or authority in the Business and Consumer Services Agency that has the authority to grant licenses or certificates which are prerequisites to employment eligibility or professional status. (

g) The amendments made to this

section by the act adding this subdivision shall become operative on July 1, 2026.

SEC. 46.

Section of the Government Code is amended to read: 14030. The powers and duties of the department include, but are not limited to, all of the following activities: (

a) Supporting the commission in coordinating and developing, in cooperation with local and regional entities, comprehensive balanced transportation planning and policy for the movement of people and goods within the state. (

b) Coordinating and assisting, upon request of, the various public and private transportation entities in strengthening their development and operation of balanced integrated mass transportation, highway, aviation, maritime, railroad, and other transportation facilities and services in support of statewide and regional goals. (

c) Developing, in cooperation with local and regional transportation entities, the full potential of all resources and opportunities that are now, and may become, available to the state and to regional and local agencies for meeting California’s transportation needs, as provided by statutes and, in particular, maximizing the amount of federal funds that may be available to the state and increasing the efficiency by which those funds are utilized. (

d) Planning, designing, constructing, operating, and maintaining those transportation systems that the Legislature has made, or may make, the responsibility of the department; provided that the department is not authorized to assume the functions of project planning, designing, constructing, operating, or maintaining maritime or aviation facilities without express prior approval of the Legislature with the exception of those aviation functions that have been designated for the department in the Public Utilities Code. (

e) Coordinating and developing transportation research projects of statewide interest. (

f) Exercising other functions, powers, and duties as are or may be provided for by law. (

g) With the Department of Housing and Community Development, investigating and reporting to the Secretary of Transportation and the Secretary of Business, Consumer Services, and Housing upon the consistency between state, local, and federal housing plans and programs and state, local, and federal transportation plans and programs. (

h) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 47.

Section is added to the Government Code , to read: 14030. The powers and duties of the department include, but are not limited to, all of the following activities: (

b) Coordinating and assisting, upon request of the various public and private transportation entities, in strengthening their development and operation of balanced integrated mass transportation, highway, aviation, maritime, railroad, and other transportation facilities and services in support of statewide and regional goals. (

d) Planning, designing, constructing, operating, and maintaining those transportation systems that the Legislature has made, or may make, the responsibility of the department, provided that the department is not authorized to assume the functions of project planning, designing, constructing, operating, or maintaining maritime or aviation facilities without express prior approval of the Legislature, with the exception of those aviation functions that have been designated for the department in the Public Utilities Code. (

e) Coordinating and developing transportation research projects of statewide interest. (

f) Exercising other functions, powers, and duties as are or may be provided for by law. (

g) With the Department of Housing and Community Development, investigating and reporting to the Secretary of Transportation and the Secretary of California Housing and Homelessness upon the consistency between state, local, and federal housing plans and programs and state, local, and federal transportation plans and programs. (

h) This

section shall become operative on July 1, 2026.

SEC. 48.

Part 5.1 (commencing with

Section 14470) is added to Division of Title of the Government Code , to read: 5.1. California Housing and Homelessness Agency 14470. (

a) There is in the state government the California Housing and Homelessness Agency. (

b) The California Housing and Homelessness Agency shall consist of all of the following:

(1) The Department of Housing and Community Development.

(2) The California Housing Finance Agency.

(3) The Civil Rights Department.

(4) The Housing Development and Finance Committee.

(5) The California Interagency Council on Homelessness. (c)

(1) The California Housing and Homelessness Agency succeeds to and is vested with all the duties, powers, purposes, personnel, responsibilities, and jurisdiction vested in the Business, Consumer Services, and Housing Agency insofar as they relate to the entities listed in subdivision (b).

(2) With respect to any of the functions transferred to the California Housing and Homelessness Agency pursuant to paragraph (1), any reference to the Business, Consumer Services, and Housing Agency in any statute, regulation, or contract shall be deemed to refer to the California Housing and Homelessness Agency. 14471. (

a) The Governor, upon the recommendation of the Secretary of California Housing and Homelessness, may appoint up to three deputies for the secretary. The deputies shall be exempt from civil service consistent with subdivision (

f) of

Section of

Article VII of the California Constitution. (

b) In addition to any other provision of law, the Governor may appoint an assistant, who is exempt from the civil service laws pursuant to

Section of

Article VII of the California Constitution. 14472. (

a) All employees serving in state civil service, including temporary employees, who are engaged in the performance of functions transferred to the California Housing and Homelessness Agency pursuant to

Section are transferred to the California Housing and Homelessness Agency. (

Section 18500) of Division 5), except as to positions for which the duties are vested in a position exempt from civil service. (

c) The personnel records of all transferred employees shall be transferred to the California Housing and Homelessness Agency. 14473. (

a) The Secretary of California Housing and Homelessness and the Secretary of Transportation, along with their respective departments, shall coordinate state housing and transportation policies and programs to achieve state and regional planning priorities and maximize public resources. (

b) The Secretary of California Housing and Homelessness and the Secretary of Transportation, along with their respective departments, shall coordinate state housing and transportation policies and programs to achieve state and regional planning priorities and maximize public resources. The secretaries shall consider opportunities to align program requirements and funding timelines and consider data sharing between agencies and departments within the California Housing and Homelessness Agency and the Transportation Agency. (

c) The Secretary of California Housing and Homelessness and the Secretary of Transportation may, at their discretion, coordinate with other agencies and departments, including, but not limited to, the California Environmental Protection Agency and the Office of Land Use and Climate Innovation, to achieve interrelated benefits pertaining to housing, transportation, the environment, climate, and other policy issue areas as appropriate. 14474. (

a) The California Housing and Homelessness Agency and the California Health and Human Services Agency shall coordinate relevant state housing, health, and human services policies, funding, and programs, and shall promote data alignment under the purview of each agency, to help the state achieve its objectives related to housing and homelessness as described in the California Statewide Housing Plan required by

Chapter 1.5 (commencing with

Section 50420) of Part of Division of the Health and Safety Code and the Action Plan for Preventing and Ending Homelessness in California as adopted by the California Interagency Council on Homelessness. (

b) In complying with subdivision (a), the Secretary of California Housing and Homelessness and the Secretary of California Health and Human Services shall consider any input from the California Interagency Council on Homelessness. 14475. (

a) The California Housing and Homelessness Agency and the Business and Consumer Services Agency, along with their respective departments, shall coordinate state policy, programs, and funding to further the state’s objectives related to housing, homelessness, civil rights, and consumer protections and facilitate administrative continuity following the dissolution of the Business, Consumer Services, and Housing Agency on July 1, 2026. (

b) The Secretary of California Housing and Homelessness and the Secretary of Business and Consumer Services shall maintain and expand upon data, policy, and programmatic partnerships between departments within their respective agencies and evaluate opportunities to enhance interagency coordination and policy alignment in furtherance of statutory mandates. 14476. The Secretary of California Housing and Homelessness may develop programs for technical and fiscal assistance to facilitate nonprofit, self-help community vegetable gardens and related supporting activities. 14477. This part shall become operative on July 1, 2026.

SEC.

Section 15562.5 of the Government Code is amended to read: 15562.5. (a)

(1) On or before July 1, 2023, the agency shall establish an advisory committee to study and evaluate the effects of heat on California’s workers, businesses, and the economy.

(2) The advisory committee shall meet to recommend the scope of a study to the agency. The committee shall meet at least once after the study is complete.

(3) In considering the effects of heat on California’s workers, businesses, and the economy, the advisory committee shall recommend a study that addresses some or all of the following topics: (

A) How to improve data collection regarding worker injuries, illnesses, or deaths as well as losses to businesses and the economy to more accurately capture those traceable to heat. (

B) Time away from work and lost wages due to heat. (

C) The frequency at which different types of occupational injuries and illnesses occur at given temperatures and humidity levels, including injuries and illnesses not directly attributable to heat exposure. (

D) Underreporting of heat illnesses and injuries covered by workers’ compensation, especially among low-income employees, including the underreporting of occupational heat exposure with effects on workers after their shifts. (

E) Evidence-based methods of minimizing the effect of heat on workers.

(4) The committee shall be composed of the following members: (

A) The Secretary of Labor and Workforce Development, or their designee. (

B) One representative from, and appointed by, the Department of Industrial Relations. (

C) One representative from, and appointed by, the Division of Occupational Safety and Health. (

D) One representative from, and appointed by, the Employment Development Department. (

E) One representative from, and appointed by, the Business, Consumer Services and Housing Agency. (

F) One representative from, and appointed by, the Division of Workers’ Compensation. (

G) One representative from the Climate Change and Health Equity Section, within and appointed by the State Department of Public Health. (

H) One representative appointed by the Labor and Workforce Development Agency, from a labor union, who has demonstrated expertise in high heat-related exposure. (

I) One representative appointed by the Labor and Workforce Development Agency, from a business, who has demonstrated expertise in high heat-related exposure. (

J) Three scholars, including at least one economist, appointed by the Labor and Workforce Development Agency, who have demonstrated expertise in high heat-related exposure. (

K) One representative from, and appointed by, the Governor’s Office of Planning and Research. (

b) The advisory committee may contract with academic institutions or other researchers to complete its work. (c)

(1) The advisory committee shall issue and submit a report of its findings to the Legislature, including, but not limited to, the Assembly Labor and Employment Committee and the Senate Labor, Public Employment and Retirement Committee, no later than January 1, 2026.

(2) The report required pursuant to paragraph (1) shall be submitted in compliance with

Section 9795. (

d) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC.

Section 15562.5 is added to the Government Code , to read: 15562.5. (a)

(1) On or before July 1, 2023, the agency shall establish an advisory committee to study and evaluate the effects of heat on California’s workers, businesses, and the economy.

(2) The advisory committee shall meet to recommend the scope of a study to the agency. The committee shall meet at least once after the study is complete.

(3) In considering the effects of heat on California’s workers, businesses, and the economy, the advisory committee shall recommend a study that addresses some or all of the following topics: (

A) How to improve data collection regarding worker injuries, illnesses, or deaths as well as losses to businesses and the economy to more accurately capture those traceable to heat. (

B) Time away from work and lost wages due to heat. (

E) Evidence-based methods of minimizing the effect of heat on workers.

(4) The committee shall be composed of the following members: (

A) The Secretary of Labor and Workforce Development, or their designee. (

B) One representative from, and appointed by, the Department of Industrial Relations. (

C) One representative from, and appointed by, the Division of Occupational Safety and Health. (

D) One representative from, and appointed by, the Employment Development Department. (

E) One representative from, and appointed by, the California Housing and Homelessness Agency. (