The State Bar of California has recently put forth a series of fee increases, aiming to generate additional revenue in response to a significant budget deficit. These proposed fee hikes would affect law graduates and attorneys seeking licensure in the state. The State Bar’s plan comes as a measure to address a multimillion-dollar shortfall and marks the first increase in bar exam and moral character review process fees since 2016.
Law students registering for and taking the California bar exam would face a 26% surge in fees, with costs rising from $796 to $1,000. Attorneys licensed in another jurisdiction would encounter a steeper increase of 50%, as their fees would rise from $1,197 to $1,800. Additionally, the moral character determination fee, covering the bar’s evaluation of an applicant’s past conduct, would experience a 32% increase to $725 for law students and a 54% increase to $850 for attorneys seeking licensure in the state.
The State Bar, in its call for public comment on the proposed fee increases, cited escalating costs related to renting hotels and convention centers, staff salary increments, and inflation as reasons for the price hike in administering the exam. The public has until July 31 to submit their comments and opinions on the matter.
According to the State Bar, its admissions functions are projected to operate at a $7 million deficit this year, despite having a reserve of $4 million. With an overall budget of nearly $270 million, the reserve falls short in sustaining future operations without fee adjustments and cost reductions. As part of its cost-cutting efforts, the state bar has proposed reducing the number of bar exam sites from the current range of 14 to 16 to only six for the July exam and 10 to 12 for the February test, beginning in 2024.
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The plan envisions three “very large” test sites in San Francisco, Los Angeles, and Ontario, with additional sites at the State Bar’s offices in Los Angeles and San Francisco catering to exam takers requiring testing accommodations. A site in Orange would also be designated for this purpose. Existing San Diego, Sacramento, and Oakland test locations would be eliminated.
According to data from the National Conference of Bar Examiners, as the second-largest bar exam jurisdiction in the United States, trailing only New York, California witnessed over 10,000 candidates sitting for its two bar exams in 2022. Bar exam costs vary significantly across different states, with New York charging $250 and Florida setting the fee at $600.
In addition to the proposed fee increases for exam takers, the State Bar is also seeking a $107 raise in the annual fees paid by active attorneys in the state. This represents a roughly 25% increase from the current fee of approximately $500 paid by most active attorneys. Any fee adjustment would require the approval of state lawmakers. A state auditor’s report in April highlighted the organization’s expenditure surpassing its annual revenue and projecting a deficit of $4.3 million for the current year.
The proposed fee increases for the California bar exam and attorney licensing aim to address the State Bar’s budget shortfall and ensure the financial sustainability of its operations. As legal professionals and aspiring lawyers evaluate the potential impact of these fee hikes, the State Bar welcomes public input before finalizing any adjustments.
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