Yes, the Department of Fish and Game is supposed to be regulating, let's see.... it's around here somewhere.... oh right, "Fish and Game", of which bees are neither.
This is a power-grab expansion of their authority, which the lower court saw through to the obvious, that the intent of the law was to allow them to regulate fish and other fish-like creatures which live in underwater, but was poorly drafted, not that the legislature intended to widen the scope of "Fish and Game" regulations to every insect, but chose not to use the word insect because they just forgot, or something.
To expand the Department's authority in order to become the "Department of Fish, Game, and Insects", taking in a new massive scope of agriculture and pest regulations requires an explicit act by the legislature, not a drafting mistake in how they wrote the law. But as long as the appeals court here doesn't get overturned, because they're in favor of additional regulations, despite the lack of authority from the legislature, apparently bees (and other insects) are legally fish in CA.