Report 2022-031 Recommendation Responses
Report 2022-031: The State Bar of California: It Will Need a Mandatory Licensing Fee Increase in 2024 to Support Its Operations (Release Date: April 2023)
Recommendation for Legislative Action
The Legislature should set the maximum annual licensing fee that the State Bar may charge for 2024 to $414 for actively licensed attorneys and $103.40 for inactive licensees. However, before the Legislature finalizes the maximum annual licensing fee amounts for 2024, it should request that the State Bar provide it with the following information:
-An itemized listing of the mandatory licensing fee revenue that the State Bar will need to fund its operations in 2024 program by program. This breakdown should identify any changes in the State Bar's financial situation following the release of this audit, such as the sale of its San Francisco building or the State Bar choosing not to increase some of its service fees to fully recoup its costs as we recommend below. The State Bar will need to identify the effect that any changes to its financial situation will have on the mandatory licensing fee amounts we have identified as necessary.
-A list of any programs funded by licensing fees that need additional funding beyond the program-by-program breakdown to operate effectively and to meet related performance metrics. The list should specify the State Bar's understanding of the amount of funding needed per program.
Description of Legislative Action
As of 6/12/23, the Legislature has not taken specific action to implement this recommendation. However, SB 40 (Umberg, 2023) contains language to set a fixed annual license fee for active licensees for 2024, but does not include specific amounts. This bill is pending in the Assembly.
- Legislative Action Current As-of: February 2026
California State Auditor's Assessment of 60-Day Status: No Action Taken
Description of Legislative Action
SB 40 (Chapter 697, Statutes of 2023) would fix the annual license fee for active licensees for 2024 at a sum not exceeding $390 and $97.40 for inactive licensees. The bill also requires the State Bar to prepare a report related to how it would use revenue generated by an increase in the annual license fees, a calculation of the necessary fee increase to maintain its existing operations and service levels, and an assessment of all programs and activities that require additional support from the annual licensing fee. This report is required to be submitted no later than April 1, 2024.
- Legislative Action Current As-of: February 2026