The State Bar of California
It Will Need a Mandatory Licensing Fee Increase in 2024 to Support Its Operations
Appendix A
State Bar Programs and Administrative Offices
The Legislature directed our office to evaluate each program and office of the State Bar that receives support from the annual mandatory licensing fees and other fees required of active and inactive licensees. Table A presents a list of all of the State Bar’s programs and offices that receive support from such fees. We did not review the programs and offices that receive support from fees that licensees of the State Bar are not required to pay, such as voluntary fees and service fees.
The Legislature also directed our office to assess the programs’ and offices’ budgeted and actual expenditures of fee revenue, their staffing levels, and their other resources, as well as to evaluate the State Bar’s related performance measures, which the State Bar refers to as metrics. Table A provides information on the current budgets, expenditures, staffing, and performance metrics for each program and office that receives support from required fees. We used the State Bar’s projections of 2022 expenditures from its 2023 budget because the State Bar had not finalized its year‑end accounting records through December 2022 or its 2022 financial audit during our audit period. These 2022 projections therefore do not reflect the State Bar’s final 2022 expenditures. The table also presents a three‑year trend in expenditures of mandatory licensing fees for each program. The totals for the programs include both the direct costs for operating the programs and the indirect costs allocated to each program to pay for the administrative offices. Accordingly, the costs for administrative offices are included both under the administrative offices and within the programs as indirect costs. In the table, we included performance metrics only if the State Bar established targets for them and addressed them in its most recent report on performance metrics. The State Bar tracks some performance metrics at monthly, quarterly, semiannual, or annual frequencies, while others are one‑time in nature. We considered a performance metric met if it met its targets for the entire year as reported in its most recent performance metrics report.
Table A
State Bar Programs and Administrative Office
Program/Office |
| Programs |
Office of the Chief Trial Counsel
Investigates complaints of attorney misconduct and takes disciplinary action as necessary. |
- Maintain an annual caseload clearance rate of at least 100%.
- Maintain current level of Complaint Review Unit reopens for reasons other than new evidence.
- Maintain current level of Walker Petition reopens.
- Decrease the number of random audit reopens for substantive reasons.
|
$61,498,806 |
$61,438,806 |
$61,020,668 |
$60,928,463 |
289.00 |
269.00 |
7% |
$61,004,577 |
$59,097,544 |
$60,928,463 |
Even |
Client Security Fund
Receives applications from individuals who suffer monetary losses because of dishonest conduct by attorneys. It authorizes and provides recovery to eligible applicants from funds the State Bar collects for this purpose. |
- Resolve at least 1,350 cases in 2021.
- Decrease time to payout after final discipline by 5%.
|
9,898,771 |
8,020,090 |
4,737,559 |
4,642,811 |
8.54 |
6.54 |
23 |
13,764,724 |
6,382,095 |
4,642,811 |
Trending Down |
State Bar Court
Adjudicates formal disciplinary matters resulting in the final imposition of discipline. In certain instances involving suspension or disbarments, it recommends discipline to the California Supreme Court. |
- Hearing Department: 90% of cases to be processed within case type timeline.
- Hearing Department: 100% of cases to be processed within 150% of case type timeline.
- Review Department: 90% of cases to be processed within case type timeline.
- Review Department: 100% of cases to be processed within 150% of case type timeline.
- Effectuations: 100% of cases to be processed within timeline.
|
14,267,214 |
14,263,214 |
14,326,653 |
14,323,278 |
42.00 |
41.00 |
2 |
13,687,748 |
13,740,849 |
14,323,278 |
Trending Up |
Attorney Regulation and Consumer Resources*
Maintains the roll of attorneys the State Bar has admitted to practice law as well as the records of all State Bar licensees. |
- Less than 38% of Resource Center calls transferred out.
- Less than 25% of calls abandoned.
- Average call wait time of less than seven minutes.
- Process 75% of MCLE applications within 30 days of receipt.
- Continue implementation of LLP online renewal with a goal of 90% of LLPs completing online by the fourth quarter of 2021.
- Fulfill 95% of requests for certificates of standing within five business days of receipt.
- For the first and second quarters of 2021, send three email blasts and conduct eight MCLE provider trainings per quarter on the new MCLE provider management system.
|
6,780,633 |
5,945,133 |
7,970,449 |
7,083,775 |
33.00 |
29.00 |
12 |
4,119,883 |
5,078,555 |
7,083,775 |
Trending Up |
Professional Competence
Promulgates professional standards, assists licensees’ compliance with standards, and develops programs to enhance competence. |
- 80% of callers report a high level of overall satisfaction with the Ethics Hotline experience.
- Voluntary e-learning courses: 85% of participants report these courses met their expectations.
- Mandatory e-learning courses: 70% of participants report these courses met their expectations.
- 80% of all annual Lawyer Referral Service recertification applications processed within 60 days of receipt of a completed submission.
- 90% of requests for arbitration of attorney‑client fee disputes are served on the responding attorney within 10 business days of receipt of a completed submission.
|
4,101,926 |
4,041,726 |
3,633,132 |
3,541,733 |
14.30 |
11.30 |
21 |
2,710,641 |
3,218,176 |
3,541,733 |
Trending Up |
Lawyer Assistance Program
Identifies and rehabilitates attorneys who are impaired because of mental illness or abuse of drugs or alcohol. |
- Increase intakes by 10%.
- Respond to 100% of requests for presentations within two business days.
- Complete 10 law school presentations and 20 bar association or law firm presentations in 2021.
- 80% of survey participants report that the Lawyer Assistance Program addressed their goals.
- 80% of survey participants report they are satisfied with their Lawyer Assistance Program experience.
|
2,601,650 |
2,095,180 |
2,257,231 |
2,256,406 |
9.63 |
7.63 |
21 |
2,286,870 |
2,141,698 |
2,256,406 |
Even |
Probation
Monitors disciplined attorneys who have been ordered to comply with probation. |
80% of courtesy reminder letters are provided to respondents within three weeks of case initiation. |
1,870,712 |
1,870,712 |
1,800,330 |
1,800,330 |
8.53 |
7.53 |
12 |
1,969,446 |
1,763,644 |
1,800,330 |
Trending Down |
Strategic Communications
Conveys information to the public and legal community about the State Bar’s public protection role and methods of protecting the public from attorney misconduct. |
- 90% of stakeholders report a high level of overall satisfaction with quality of internal communications.
- Expand communications engagement with Spanish-speaking audiences through a campaign involving paid social media placements and radio public service announcements.
|
1,438,899 |
1,363,899 |
1,539,202 |
1,489,823 |
6.00 |
5.00 |
17 |
890,645 |
900,226 |
1,489,823 |
Trending Up |
Center on Access to Justice within the Office of Access and Inclusion
Develops policies and initiatives in collaboration with other institutions working to expand access to justice for low‑income Californians. |
- Closely monitor Interest on Lawyer’s Trust Accounts rates, including continued strategy around Leadership Bank Program, to stabilize funding.
- Issue report on law school retention by the third quarter of 2021.
- Provide commissioners with meeting materials five to seven days in advance at least 80% of the time.
- Issue 80% of monitoring visit and fiscal visit findings within 60 days.
|
741,512 |
741,512 |
614,527 |
614,527 |
2.00 |
1.40 |
30 |
762,498 |
1,021,744 |
614,527 |
Trending Down |
Judicial Evaluation
Evaluates all candidates under consideration for a judicial appointment to assist the Governor in the judicial selection process. |
100% of Judicial Nominees Evaluation candidates evaluated within 90 days. |
775,667 |
775,667 |
842,249 |
842,249 |
3.10 |
3.10 |
0 |
394,356 |
250,305 |
842,249 |
Trending Up |
Mandatory Fee Arbitration
Resolves fee disputes between attorneys and clients. |
Metrics for this area are listed above in the row for the Office of Professional Competence. |
62,644 |
31,144 |
161,933 |
43,928 |
– |
– |
– |
(7,455) |
(4,997) |
43,928 |
Trending Up |
| Totals |
$104,038,434 |
$100,587,083 |
$98,903,933 |
$97,567,323 |
416 |
382 |
8% |
$101,583,933 |
$93,589,839 |
$97,567,323 |
Trending Down |
| Administrative Offices |
General Counsel
Provides legal advice and representation to the State Bar and the board. |
- Complete and resolve an average of 60 Complaint Review Unit cases per month.
- 90% of clients report a high level of overall satisfaction with services provided by Office of General Counsel staff.
|
4,864,838 |
4,019,577 |
4,587,547 |
4,019,577 |
24.00 |
15.00 |
38 |
4,079,046 |
3,791,172 |
4,019,577 |
Even |
Finance
Manages the State Bar’s financial reporting and budget development. |
- Provide fiscal year-to-date budget-actual analysis on a monthly basis to enable efficient financial management by client division or office and the executive director within 30 days of the end of the month.
- Pay 90% of vendor invoices within 30 days of receipt.
- Complete monthly adjusting journal entries and close the books timely and accurately within 20 business days of the end of the month.
- 90% of internal clients report a high level of overall satisfaction with services provided by Finance staff.
|
2,421,813 |
1,738,750 |
2,490,744 |
1,738,750 |
14.00 |
12.00 |
14 |
2,131,844 |
2,037,905 |
1,738,750 |
Trending Down |
Member Billing
Ensures that fee payments from licensees are properly processed. |
Metrics for this area are listed above in the row for Attorney Regulation and Consumer Resources. |
799,800 |
722,700 |
728,476 |
722,700 |
4.00 |
4.00 |
0 |
480,487 |
863,524 |
722,700 |
Trending Up |
Human Resources
Provides human resources services to the State Bar. |
- Conduct 80% of performance evaluations by anniversary date or, for executives, the due date.
- 90% of internal customers report a high level of overall satisfaction with services provided by Human Resources staff.
|
1,882,800 |
1,555,665 |
2,005,844 |
1,555,665 |
10.66 |
9.66 |
9 |
2,006,699 |
1,431,268 |
1,555,665 |
Trending Down |
General Services—Los Angeles
Manages the State Bar’s office space in Los Angeles. |
- Process 90% of procurement requisitions with 100% accuracy within three days.
- Process 85% of all facilities requests (not requiring parts or equipment ordering) within three or fewer business days.
- 90% of internal customers report a high level of overall satisfaction with services provided by General Services staff.
- Advance capital improvement projects per capital improvement plan by the fourth quarter of 2021 including the following:
- Complete HVAC/chiller project.
- Execute contract for generator project and prepare site for 2022 installation.
- Execute contract for elevator modernization project for 2022–2024 phased upgrade.
|
4,201,450 |
3,557,716 |
4,158,403 |
3,557,716 |
9.00 |
9.00 |
0 |
3,249,175 |
3,657,489 |
3,557,716 |
Trending Up |
General Services—San Francisco
Manages the State Bar’s office space in San Francisco. |
4,772,170 |
4,192,107 |
4,408,945 |
4,192,107 |
10.68 |
9.68 |
9 |
4,274,694 |
4,403,555 |
4,192,107 |
Trending Down |
Information Technology
Provides software and hardware systems to support operations and programs. |
- 90% of stakeholders report a high level of overall satisfaction with new technology deployments.
- Process 85% of all information technology service requests (not requiring parts or equipment ordering or software development) within five business days or less.
- Complete 90% of planned major information technology projects on schedule and on budget.
- 90% of internal customers report a high level of overall satisfaction with services provided by information technology staff.
|
12,933,058 |
10,685,951 |
13,783,447 |
10,685,951 |
45.66 |
35.66 |
22 |
11,061,567 |
9,699,377 |
10,685,951 |
Trending Down |
Governance
Ensures that the State Bar achieves the goals and objectives outlined in the State Bar’s Strategic Plan. The executive director establishes operating policies, and is responsible for the leadership and management of the State Bar according to the strategic direction set by the board. |
- 90% of Board of Trustees report a high level of overall satisfaction with quality of operational support provided.
- Standardize public comment process (timelines, submission form and template, and style guides) by the fourth quarter of 2021.
- 90% of all Office of Research and Institutional Accountability projects meet project milestones.
- Publish second annual diversity report card in online interactive dashboard by the second quarter of 2021.
|
3,912,710 |
2,809,246 |
3,613,109 |
2,809,246 |
17.90 |
11.40 |
36 |
2,513,180 |
2,046,220 |
2,809,246 |
Trending Up |
Recruitment and Retention
Recruits, hires, and onboards new State Bar staff. |
- Reduce average time to hire to 60 days or fewer.
- Stay interviews are conducted for 100% of new hires within 90 days of hire.
- 90% of participants report a high level of overall satisfaction with the Training and Development Program.
- 90% of internal customers report a high level of overall satisfaction with services provided by Recruitment and Retention staff.
|
1,326,400 |
1,095,942 |
1,201,755 |
1,095,942 |
5.00 |
5.00 |
0 |
0 |
1,014,299 |
1,095,942 |
Trending Up |
OPEB
OPEB is other post-employment benefits and provides post‑retirement health care benefits for eligible State Bar employees. |
The State Bar has no metrics related to this area. |
3,649,000 |
3,014,990 |
3,649,000 |
3,014,990 |
– |
– |
– |
0 |
3,023,806 |
3,014,990 |
Even |
Building Improvement/ Property Related
Debt-related capital improvements on the State Bar’s San Francisco building. |
Metrics for this area are listed above in the row for General Services. |
1,736,600 |
1,179,489 |
1,736,600 |
1,179,489 |
– |
– |
– |
426,640 |
0 |
1,179,489 |
Trending Up |
| Totals |
$42,500,639 |
$34,572,133 |
$42,363,870 |
$34,572,133 |
141 |
111 |
21% |
$30,223,332 |
$31,968,615 |
$34,572,133 |
Trending Up |
Source: State Bar budgets, financial statements, and performance metrics report, and State Auditor analysis of State Bar accounting records, cost allocation plans, and personnel rosters.
Notes: We used the State Bar’s projections of 2022 expenditures from its 2023 budget because the State Bar had not finalized its year-end accounting records through December 2022 or its 2022 financial audit during our audit period. These 2022 projections therefore do not reflect the State Bar’s final 2022 expenditures. There were two other administrative areas, communications and nondepartmental, that the State Bar spent nearly $750,000 total on in 2020. However, it did not spend on these areas in 2021 or 2022; therefore, we did not include them in the table. The State Bar also did not spend on OPEB or Recruitment and Retention in 2020.
The totals for the programs include both the direct costs for operating the programs and the indirect costs allocated to each program to pay for the administrative offices. Accordingly, the costs for administrative offices are included both under the administrative offices and within the programs as indirect costs.
As we discuss in the report, the State Bar allocates its costs based on its annual budget. This means that the actual amounts its administrative offices receive in indirect cost allocation are the same as the amount budgeted for the programs. We calculated the budget and actual expenditures from mandatory fees for the administrative offices by totaling the amounts that each administrative office received in funding from mandatory fee-funded programs, excluding allocation from other programs not funded by mandatory fees.
* Although Member Billing is an administrative office, its metrics are tracked and reported by the Attorney Regulation and Consumer Resources program.
