State Bar of California Proposes Fee Increases for Bar Exam and Attorney Licensure

The State Bar of California is addressing a significant budget deficit by proposing fee increases that would affect law graduates and attorneys seeking licensure in the state. These fee hikes, the first since 2016, are intended to generate additional revenue and tackle a multimillion-dollar shortfall.
 

Under the proposed changes, law students registering for and taking the California bar exam would see a 26% increase in fees, with costs rising from $796 to $1,000. Attorneys licensed in another jurisdiction would face a steeper increase of 50%, with their fees rising from $1,197 to $1,800. The moral character determination fee, which covers the evaluation of an applicant's past conduct, would experience a 32% increase to $725 for law students and a 54% to $850 for attorneys seeking licensure in the state.
 
The State Bar attributes these fee increases to escalating costs associated with renting hotels and convention centers, staff salary increments, and inflation, which have impacted the administration of the exam. The State Bar is currently seeking public comment on these proposed fee increases, with a deadline of July 31 for submitting opinions and feedback.
 
The State Bar has projected a $7 million deficit in admissions functions this year, despite having a reserve of $4 million. With an overall budget of nearly $270 million, the reserve needs to sustain future operations with 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 14 to 16 to only six for the July exam and 10 to 12 for the February test, starting in 2024.
 
The plan includes establishing three "huge" test sites in San Francisco, Los Angeles, and Ontario, with additional locations at the State Bar's offices in Los Angeles and San Francisco to accommodate exam takers requiring special testing arrangements. A site in Orange would also be designated for this purpose, while existing test locations in San Diego, Sacramento, and Oakland would be eliminated.
 
Notably, California is the second-largest bar exam jurisdiction in the United States after New York. In 2022, over 10,000 candidates sat for California's two bar exams. Bar exam costs vary significantly across 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 approval from state lawmakers. A state auditor's report in April highlighted the organization's expenditures exceeding its annual revenue, projecting a deficit of $4.3 million for the current year.
 
As the State Bar of California aims to address its budget shortfall and ensure the financial sustainability of its operations, it values public input in the decision-making process. Legal professionals and aspiring lawyers are encouraged to share their opinions and perspectives on the proposed fee increases before any adjustments are finalized.