On May 12, 2026, California Gov. Gavin Newsom announced the appointment of former Director of the Consumer Financial Protection Bureau (CFPB) Rohit Chopra as the first secretary of California’s newly created Business and Consumer Services Agency (BCSA).
Set to launch on July 1, 2026, the new cabinet-level agency is designed to strengthen consumer protection and fairness through the coordination of licensing, enforcement and rulemaking efforts across various state departments and bureaus. The BCSA’s launch comes as California and other states stepped up to fill the void as federal consumer protection and fair lending efforts were scaled back.
Structure and expected priorities of the BCSA
The BCSA was created as part of a broader reorganization of California state government that Newsom initiated last summer, which separated the former Business Consumer Services and Housing Agency into two distinct successor agencies.
The BCSA will consolidate under a single administrative umbrella a number of state departments and regulatory bodies that oversee consumer-facing industries – including the Department of Financial Protection and Innovation (DFPI) and Department of Real Estate (DRE), in addition to the Department of Alcoholic Beverage Control (ABC), Alcoholic Beverage Control Appeals Board (ABC AB), Department of Cannabis Control (DCC), Cannabis Control Appeals Panel (CCAP), California Horse Racing Board (CHRB) and Department of Consumer Affairs (DCA).
According to the press release, the BCSA intends to further a number of existing California initiatives through improved oversight and coordination across departments, including:
- Eliminating junk fees and hidden charges.
- Strengthening online privacy and consumer data protection.
- Enhancing enforcement against scams and predatory practices.
- Increasing oversight and accountability for oil companies.
- Launching CalRx to lower prescription drug costs.
- Increasing corporate transparency and accountability.
Looking forward
Chopra’s appointment to the top role at the BCSA will likely build on the state’s aggressive posture toward supervision of nonbank financial services entities and enforcement of California’s consumer financial protection statutes. Regulated entities should prepare for a continued, if not heightened, focus on junk fees, fraud and fairness as Chopra (upon state Senate confirmation) assumes the helm of the new agency.