2024-030 The State Bar of California
It Must Continue to Achieve Cost Savings and Reduce Its Growing Backlog of Disciplinary Cases
Published: February 27, 2025
Audit Recommendations Disclosure
When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor’s assessment of auditee’s response based on our review of the supporting documentation.
The Legislature
Recommendation 1
To ensure that the State Bar has time to implement the expanded diversion program and gather data on its effectiveness, the Legislature should wait until the State Bar reports in 2027 on how its recent changes to the OCTC’s operations will affect case processing timelines before the Legislature codifies the OCTC’s proposed standards.
Agency response status:
pending
The State Bar
Recommendation 2
To improve its financial position, the State Bar should complete its implementation of the modified bar exam and especially its reduction-in-workforce measure, which should help it achieve the Legislature’s mandated vacancy rate goal and achieve savings.
Agency response status:
Not fully implemented
Date of implementation:
April 2027
State Auditor assessment status:
Pending
60-Day Agency Response
The State Bar engaged in a voluntary reduction in force; the last staff leaving pursuant to this program are scheduled to depart the State Bar on July 10, 2025. The State Bar will further improve its financial position through reduced hiring and increased vacant positions. The financial impact of these changes will not be fully realized until 2026.
Due to the significant technical issues during the February 2025 Bar Exam administration, the Supreme Court directed the State Bar to plan to administer the July 2025 Bar Exam in person, and the Committee of Bar Examiners and Board of Trustees directed that July be administered fully in person. As a result of this change, and significant expenditures to address the problems with the February administration, the Admissions Fund will be severely depleted in 2025. Staff is prioritizing an effective July 2025 in-person exam administration. The desire of test takers to take the exam remotely, and the cost implications of in person exam delivery continue to argue for transitioning to a remote administration. Beginning in summer 2025, the Committee of Bar Examiners will undertake a renewed exploration of options and vendors for a future remote administration, though it is anticipated that at least the February 2026 exam will be conducted in person to allow sufficient time for exploration, planning, and implementation.
6-Month Agency Response
The State Bar completed a voluntary reduction in force on July 10, 2025. The State Bar continues to seek to improve its financial position through reduced hiring and an increase in vacant positions. The financial impact of these changes will not be fully realized until 2026. The State Bar will evaluate the programmatic impact and long-term sustainability of these reductions.
Following the significant technical and other issues during the February 2025 Bar Exam, the Supreme Court directed the State Bar to plan to administer the July 2025 Bar Exam in person, and the Committee of Bar Examiners (CBE) and Board of Trustees (Board) directed that July be administered fully in person. The Supreme Court also directed the use of the Multistate Bar Exam (MBE), which was purchased for approximately $600,000. Senate Bill 253, if enacted, would require the State Bar to administer the bar exam in person at jurisdiction-run test sites through at least the July 2027 exam (the bill requires two-year’s notice to move from the MBE). Any jurisdiction using the MBE must follow the National Conference of Bar Examiners’ requirements, including administering the exams in person at jurisdiction-run sites.
As a result of this change, and significant expenditures to respond to the February administration (e.g., refunds and waivers of application fees), the Admissions Fund will be severely depleted in 2025 and 2026. CBE and the Board have renewed exploring options for future exam administration, including possible future remote administration. However, it is anticipated that, through at least the July 2027, the bar exam will be conducted in person. To improve the Admissions Fund financial position, the State Bar will conduct an analysis of the fees across Admissions Fund programs to address the higher costs of in-person bar exams in 2026 and 2027. The State Bar expects to bring this analysis to CBE and the Board for adoption of new fees before the end of 2025.
Recommendation 3
To measure the effectiveness of changes to OCTC’s operations and support potential future requests for OCTC staffing, the State Bar should adopt the proposed case processing standards by August 2025 as benchmarks against which to measure OCTC’s progress in shortening timelines and reducing backlog.
Agency response status:
Not fully implemented
Date of implementation:
Aug. 2025
State Auditor assessment status:
Pending
60-Day Agency Response
OCTC is developing benchmarks based on the proposed case processing standards. By no later than August 2025, these benchmarks will be included in the dashboard reporting that is published and shared with the Board of Trustees on a quarterly basis.
Recommendation 4
To ensure consistency in its setting of law school oversight fees, the State Bar should by August 2026 reexamine its methodology for determining all fees for CALS and for unaccredited schools and set supportable fees for all law schools. In developing the fees, the State Bar should conduct a fiscal analysis to ensure that the fee amounts charged to law schools reflect the State Bar’s actual cost of its oversight, unless it determines that doing so would limit the public’s access to the services.
Agency response status:
Not fully implemented
Date of implementation:
Dec. 2026
State Auditor assessment status:
Pending
60-Day Agency Response
The State Bar has established a schedule to review its fees every 3 years, with the Admissions fees scheduled for review in late 2026. The review of these law school fees will be conducted as part of that review.
6-Month Agency Response
The Office of Finance planned to conduct the next analysis of the fees needed to support the Admissions Fund in the summer of 2026 to meet the requirement to review fees every three years. However, to consider the fee increases needed to address the higher costs of bar exams in 2026 and 2027 and the impact on the Admission Fund, a fee analysis will be conducted in late 2025 to adjust fees effective 2026. The review of these law school fees will be conducted as part of that review.
