AB170 - Governor’s Reorganization Plan No. 1 of 2025: codification.

Amended IN Senate June 26, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 170 Introduced by Assembly Member Gabriel 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) January 08, 2025 An act relating to the Budget Act of 2025. An act to amend Sections 100, 10004, 10050, 19404, 23050, 23075, 26001, 26010, 26010.5, and 26040 of, and to amend and repeal Section 26180.5 of, the Business and Professions Code, to amend Sections 1916.12, 1918.5, and 5405 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 513 of the Food and Agricultural Code, to amend Sections 12895, 12896, and 12944 of, to amend and repeal Sections 12804, 12804.5, and 12856 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 3 of Title 2 of, the Government Code, to amend Sections 35805 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 54913 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 75121 of the Public Resources Code, to amend Section 10200 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 4581 and 9850 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 8 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. LEGISLATIVE COUNSEL'S DIGEST AB 170, as amended, Committee on Budget. Budget Act of 2025. 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 90 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. Digest Key Vote: MAJORITY Appropriation: NO YES Fiscal Committee: NO YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 100 of the Business and Professions Code is amended to read: 100. (a) There is in the state government, in the Business, Business and Consumer Services, and Housing 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 10004 of the Business and Professions Code is amended to read: 10004. (a) “Department” means the Department of Real Estate in the Business, Business and Consumer Services, and Housing Services Agency. (b) This The amendments made to this section by the act adding this subdivision shall become operative on July 1, 2018. 2026. SEC. 3. Section 10050 of the Business and Professions Code is amended to read: 10050. (a) (1) There is in the Business, Business and Consumer Services, and Housing 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 2 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 19404 of the Business and Professions Code is amended to read: 19404. (a) “Board” means the California Horse Racing Board within the Business, Business and Consumer Services, and Housing 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 23050 of the Business and Professions Code is amended to read: 23050. (a) There is in the state government, in the Business, Business and Consumer Services, and Housing 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 22 of Article XX of the Constitution and shall receive an annual salary as provided for by Chapter 6 of Part 1 of Division 3 of Title 2 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 23075 of the Business and Professions Code is amended to read: 23075. (a) There is in the state government, in the Business, Business and Consumer Services, and Housing Services Agency, an Alcoholic Beverage Control Appeals Board the members of which shall be appointed and shall serve as provided in Section 22 of Article XX of the Constitution, and shall receive an annual salary as provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 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 26001 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 21 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 21 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 14205 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 11018 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 99 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 99 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 21 years of age or older or a natural person 18 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, Business and Consumer Services, and Housing 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 109935 of the Health and Safety Code, a processed pet food, as defined by Section 113025 of the Health and Safety Code, or a drug, as defined by Section 109925 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 t [Text truncated for display. Full text available on Congress.gov.]