Report 2018-030 All Recommendation Responses
Report 2018-030: State Bar of California: It Should Balance Fee Increases With Other Actions to Raise Revenue and Decrease Costs (Release Date: April 2019)
Recommendation for Legislative Action
To ensure funding of State Bar's operating costs and those costs associated with adding 19 trial counsel staff and increasing retiree health benefits, the Legislature should set the 2020 licensing fee at $379 for active licensees and $88 for inactive licensees.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken any additional action to fully implement this recommendation.
AB 3362 (Chapter 360, Statutes of 2020) authorized the State Bar to collect annual license fees of $395 for active licensees and $97.40 for inactive licensees for 2021. SB 176 (Chapter 698, Statutes of 2019) in part required the State Bar Board of Trustees to fix the fee for 2020 at a sum not exceeding $438 for active licenses and a sum not exceeding $108 for inactive licenses.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
AB 3362 (Chapter 360, Statutes of 2020) authorizes the State Bar to collect annual license fees of $395 for active licensees and $97.40 for inactive licensees for 2021. SB 176 (Chapter 698, Statutes of 2019), in part, requires the State Bar Board of Trustees to fix the fee for 2020 at a sum not exceeding $438 for active licenses and a sum not exceeding $108 for inactive licenses.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented
Description of Legislative Action
SB 176 (Chapter 698, Statutes of 2019), in part requires the State Bar Board of Trustees (board) to fix the fee for 2020 at a sum not exceeding $438 for active licenses and a sum not exceeding $108 for inactive licenses.
Additionally, AB 3362 (Assembly Judiciary Committee) was introduced on March 5, 2020, and, until January 1, 2022, would require the board to charge an annual license fee of up to $395 for active licensees for 2021. The bill would also require the board to charge an annual license fee for inactive licensees of up to $97.40 for inactive licensees on and after January 1, 2021.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: Partially Implemented
Description of Legislative Action
SB 176 (Chapter 698, Statutes of 2019), in part requires the State Bar Board of Trustees to fix the fee for 2020 at a sum not exceeding $438 for active licenses and a sum not exceeding $108 for inactive licenses.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
Description of Legislative Action
SB 176 (Jackson) would, until January 1, 2021, require the board to charge an annual license fee in an unspecified amount for active licensees at a sum not exceeding $460 for 2020. The bill would require the board to fix the annual license fee for inactive licensees at a sum not exceeding $109.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: Legislation Introduced
Recommendation for Legislative Action
To ensure funding for State Bar's IT projects, capital improvements, and general fund reserve, the Legislature should set a 2020 special assessment fee of $41 for active licensees and $11 for inactive licensees.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken any additional action to fully implement this recommendation.
SB 176 (Chapter 698, Statutes of 2019) states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken any additional action to fully implement this recommendation.
SB 176 (Chapter 698, Statutes of 2019) states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
SB 176 states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
As of April 30, 2020, the Legislature has not taken any additional action to fully implement this recommendation.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: Partially Implemented
Description of Legislative Action
SB 176 states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation for Legislative Action
To align the special assessment fee with State Bar's needs in the future, the Legislature should adopt the fee schedule that we present in Appendix C and as necessary, adjust the assessment related to the recommended IT projects and capital improvements each year from 2021 through 2024 to align that amount with State Bar's projected costs.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken additional action to fully implement this recommendation.
SB 176 (Chapter 698, Statutes of 2019) states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken additional action to fully implement this recommendation.
SB 176 (Chapter 698, Statutes of 2019) states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
SB 176 states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
As of April 30, 2020, the Legislature has not taken additional action to fully implement this recommendation.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: Partially Implemented
Description of Legislative Action
SB 176 states legislative intent that State Bar licensing fees for future years are set at a level sufficient to fund its proposed technology and capital improvement projects, at the levels recommended by the State Auditor, over a 5-year period for the technology and over a 10-year period for the capital improvements, less the technology updates that are included in the ongoing funding, as recommended by the Legislative Analyst's Office.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation for Legislative Action
To align the special assessment fee with State Bar's needs in the future, the Legislature should direct State Bar to determine the assessment amount necessary to rebuild its general fund reserve so that the reserve increases by 1 percent each year and reaches 17 percent by the end of 2024.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2020, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of September 2019, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation for Legislative Action
To enable State Bar to pay the security fund claims that it is likely to approve for payment in 2020, the Legislature should set the 2020 security fund fee at $80 for active licensees and $20 for inactive licensees. Should the Legislature decide that it wants to control how much it increases the security fund fee, it can consider State Bar's initiatives to reduce the security fund payout cap and give licensees the option to make voluntary contributions to the security fund.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2020, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of September 2019, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation for Legislative Action
To ensure that State Bar spends down the assistance program's excessive reserve, the Legislature should suspend the 2020 assistance program fee for both active and inactive licensees.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken action to address this specific recommendation.
SB 1151 (Jones, 2020) would have extended through 2021 the assistance program fee exemption for inactive licensees and the reduction of the fee for active licensees to $1. This bill failed passage due to the adjournment of the 2019-20 Regular Legislative Session.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken action to address this specific recommendation.
SB 1151 (Jones, 2020) would have extended through 2021 the assistance program fee exemption for inactive licensees and the reduction of the fee for active licensees to $1. This bill failed passage due to the adjournment of the 2019-20 Regular Legislative Session.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
SB 1151 (Jones) was introduced on February 20, 2020, and would extend through 2021 the assistance program fee exemption for inactive licensees and the reduction of the fee for active licensees to $1, which would be paid to a nonprofit corporation that has provided peer support to attorneys recovering from alcohol and substance abuse in a confidential and anonymous manner.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: Legislation Introduced
Description of Legislative Action
As of September 2019, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation for Legislative Action
To provide State Bar with consistent revenue and to enable it to improve its management practices, the Legislature should adopt a multiyear fee-approval cycle for the licensing, security fund, and assistance program fees. This change should take effect before the Legislature determines the licensing fee for 2021, and the cycle should include the following components: a multiyear budget, fee justifications, and related performance data submitted by State Bar; a fee cap for the multiyear period set by the Legislature; the authority for State Bar to adjust the fee each year up to the maximum amount.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2020, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of September 2019, the Legislature has not taken action to address this specific recommendation. SB 176 does state legislative intent that the State Bar be included as part of California's annual budget process beginning with the 2021-22 fiscal year.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation for Legislative Action
To simplify the fee-setting process, the Legislature should amend state law to merge the $25 discipline fee with the licensing fee in a single statute and repeal the statute authorizing the discipline fee. This change should take effect before the Legislature determines the licensing fee for 2021.
Description of Legislative Action
As of September 16, 2022, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2021, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 30, 2020, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of September 2019, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
Recommendation #9 To: Bar of California, State
To enable it to effectively determine its budget, State Bar should continue to annually prepare five-year projections.
Annual Follow-Up Agency Response From April 2021
The State Bar has completed the 2022-2026 Five-Year Financial Projection, which was presented and accepted by the Board of Trustees in the full board meeting on March 19, 2021.
A copy of the five-year projection, which was provided on the Board's March 18, 2021 consent agenda as item 54-142, has been provided to the Auditor.
- Completion Date: March 2021
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Annual Follow-Up Agency Response From October 2020
Due to a delay in implementation of a new Oracle financial system, the State Bar was unable to implement the forecasting tool in development of the 2020 budget. Staff is currently working to update the projections using Oracle Planning & Budgeting Cloud Services, which will be part of the 2021 Budget Development Process.
- Estimated Completion Date: 1st Quarter 2021
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
Due to a delay in implementation of a new Oracle financial system, the State Bar was unable to implement the forecasting tool in development of the 2020 budget. Staff is currently working to update the projections using Oracle Planning & Budgeting Cloud Services, which will be part of the 2021 Budget Development Process.
- Estimated Completion Date: March 2021
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Pending
State Bar has expressed its commitment to preparing a five year forecast as part of its annual budgeting and financial planning process despite delays in implementing a forecasting tool. We will anticipate receiving a forecast as part of its 2021 budget next year.
6-Month Agency Response
The 2020 Budget will include an updated 5 year forecast that will include projections based on the approved fee bill with updated information for the 5 year capital and technology projects based on funding.
- Estimated Completion Date: Annually
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The State Bar is committed to continuing the preparation of a five year forecast as part of the annual budgeting and financial planning process. With a multi-year fee bill process, the financial forecast will be critical in assisting the State Bar in identifying future funding needs.
- Estimated Completion Date: Annually
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: Pending
State Bar has expressed its commitment to preparing a five year forecast as part of its annual budgeting and financial planning process. We anticipate receiving its next forecast as part of its 2020 budget cycle later this year.
Recommendation #10 To: Bar of California, State
To ensure that it maximizes the revenue from its San Francisco building, State Bar should lease all available space and ensure that its leases reflect market rates.
Annual Follow-Up Agency Response From October 2022
This recommendation is no longer relevant. The State Bar is planning to sell 180 Howard Street in early 2023 and will not be pursuing additional leasing opportunities while the sale process is underway. Additionally, the pandemic has caused a significant decline in the leasing market, with San Francisco vacancy rates over 20 percent; as a result, opportunities to secure new tenants in the short term are extremely limited.
California State Auditor's Assessment of Annual Follow-Up Status: Resolved
Because the State Bar will not be retaining its San Francisco building, this recommendation is no longer relevant.
Annual Follow-Up Agency Response From April 2021
It is the State Bar's intention to lease its vacant space at market rates, with the assistance of its brokerage team at Cushman & Wakefield. There is one remaining vacant floor. The commercial leasing market has experienced a sharp downturn due to the pandemic, with increasing supply and diminishing demand. It is not clear when the leasing market will recover.
- Estimated Completion Date: Unknown
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2020
It is the State Bar's intention to lease its vacant space at market rates, with the assistance of its brokerage team at Cushman & Wakefield. There is one remaining vacant floor. The commercial leasing market has experienced a sharp downturn due to the pandemic, with increasing supply and diminishing demand. It is not clear when the leasing market will recover.
- Estimated Completion Date: Unknown
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The exisiting Floor 1 tenant pulled out of the deal to expand to Floor 3, due to a change in its business strategy. The State Bar's broker/property manager, was seeking new leasing opportunities for the Floor; those efforts are on hold at the moment due to the impact of the Coronavirus, which has generally caused the real estate market to slow down.
- Estimated Completion Date: Unknown
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Pending
State Bar has expressed its intention to implement this recommendation, but the Coronavirus has impacted that implementation. We anticipate State Bar will continue its implementation efforts as feasible in the coming year.
6-Month Agency Response
The State Bar is still negotiating with the existing Floor 1 tenant to expand to Floor 3. The tenant has agreed to finance the renovations, but this has made lease negotiations more complicated. The State Bar has signed a new market-rate lease with retail tenant to occupy the corner suite former occupied by a coffee shop. In September the State Bar awarded new contracts to Cushman & Wakefield for property management and construction project services, and for leasing brokerage services. The new contracts take effect November 1.
- Estimated Completion Date: November 2019
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
60-Day Agency Response
In progress. The State Bar has one remaining vacant floor; lease negotiations have been underway with an existing tenant that wants to expand in the building, with an anticipated lease execution date of July 30. The State Bar is also conducting a Request for Proposal process for a new property manager and broker, and hopes to have a new contract in place by October 1. The State Bar will work with the new broker to ensure that future leases are at market rate.
- Estimated Completion Date: October 2019
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: Pending
State Bar is negotiating a lease on remaining vacant space in its San Francisco headquarters building. Execution of that lease at a rate that reflects market rents for the San Francisco market will help State Bar maximize the revenue from its building.
Recommendation #11 To: Bar of California, State
To ensure that it maximizes the revenue from its San Francisco building, in the event of any future staff growth, State Bar should avoid adding space by reducing its space allocations when practical to more closely match industry standards.
Annual Follow-Up Agency Response From October 2022
This recommendation is no longer relevant. The State Bar has informed its Board of Trustees and employees that it will be consolidating to a significantly reduced footprint after the sale of 180 Howard Street in San Francisco, which will include hoteling/shared space in lieu of dedicated workspaces for each person. The Bar will also be implementing hoteling/shared space in its Los Angeles office to accommodate future headcount growth.
California State Auditor's Assessment of Annual Follow-Up Status: Resolved
Because the State Bar will be selling its San Francisco building, this recommendation is no longer relevant.
Annual Follow-Up Agency Response From April 2021
The State Bar began assessing its space usage in the San Francisco office to determine if it could further consolidate its operations and release one or more of its current floors for leasing to tenants. This effort is now on hold due to the pandemic and the resulting downturn in the leasing market.
- Estimated Completion Date: Unknown
California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented
Annual Follow-Up Agency Response From October 2020
The State Bar began assessing its space usage in the San Francisco office to determine if it could further consolidate its operations and release one or more of its current floors for leasing to tenants. This effort is now on hold due to the pandemic and the resulting downturn in the leasing market.
- Estimated Completion Date: Unknown
California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented
1-Year Agency Response
The State Bar completed a reconfiguration in its Los Angeles office to add two offices and 26 cubicles within its existing footprint. The State Bar has no plans to secure any additional space in other buildings, but will continue to accommodate future growth by reconfiguring its existing space in Los Angeles and San Francisco according to industry standards. The State Bar is also assessing its space usage in the San Francisco office to determine if it could further consolidate its operations and release one or more of its current floors for leasing to tenants.
- Estimated Completion Date: Ongoing
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Partially Implemented
State Bar has begun its efforts to reconfigure its office space in response to this recommendation and intends to continue these efforts in relation to its San Francisco office. We anticipate receiving the results of State Bar's assessment of its space usage in the San Francisco office.
6-Month Agency Response
The State Bar has no plans to secure any additional space. As it plans for staff growth and reconfiguration of its existing space, such reconfiguration will be planned in accordance with industry standards as recommended. This will be an ongoing process as reconfigurations are planned and implemented over the next several years. Currently, the State Bar is reconfiguring space in the Los Angeles office to add two offices and 26 cubicles within the existing footprint. The State Bar is also making reconfiguuration plans in San Francisco, with the dual goals of adding more seats within the existing footprint, and releasing some State Bar space for additional office and retail tenant leasing.
- Estimated Completion Date: Ongoing
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
60-Day Agency Response
In progress. The State Bar has no plans to secure any additional space. As it plans for staff growth and reconfiguration of its existing space, such reconfigurations will be planned in accordance with industry standards as recommended. This will be an ongoing process as reconfigurations are planned and implemented over the next several years.
- Estimated Completion Date: Ongoing
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: Pending
State Bar has stated its intention to implement this recommendation. It intends to reconfigure existing space to accommodate staff growth over the next several years.
Recommendation #12 To: Bar of California, State
To further its ability to operate more efficiently and reduce the backlog of discipline cases, State Bar should develop benchmarks by December 2019 delineating the duration of each step in its investigations process.
1-Year Agency Response
OCTC has completed benchmarks for investigation processes over which it has control, by case priority, and has issued guidelines accordingly. A copy of the guidelines has been provided to the Auditor in support of this response.
- Completion Date: April 2020
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Fully Implemented
6-Month Agency Response
OCTC is in the process of drafting and refining benchmarks for investigation process over which staff have control. Those benchmarks will include the management of cases, by priority.
- Estimated Completion Date: December 2019
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
60-Day Agency Response
In progress. OCTC already has some benchmarks related to the duration of each step in the investigation process. Examples of existing benchmarks include the following: the investigator should meet with the legal advisor within five days of assignment of a case to discuss an investigation plan; the investigator should meet with the legal advisor within the first 30 days of assignment, to calendar backlog and 30/60 day backlog roll-in dates. OCTC will work to identify time goals for all steps of the process reflecting current staffing levels and other constraints.
- Estimated Completion Date: December 2019
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: Pending
State Bar's response reflects that OCTC is beginning to evaluate and identify time goals for all steps in its investigations process.
Recommendation #13 To: Bar of California, State
To further its ability to operate more efficiently and reduce the backlog of discipline cases, State Bar should ensure consistency by December 2019 in the policy and guidance documents its staff follow when performing investigations work.
1-Year Agency Response
OCTC has reviewed its policy and guidance/training documents and, where necessary, edited them to ensure consistency among them. To the extent possible and necessary, the materials have been reconciled for consistency. Examples of training documents that demonstrate this consistency have been provided to the Auditor in support of this response.
- Completion Date: April 2020
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Fully Implemented
6-Month Agency Response
OCTC has reviewed policy and guidance documents, particularly related to the ENEC process identified in the Audit and determined that no change is needed in documents related to the ENEC process, at this time. In January 2019, Rule 5.30 of the Rules of Procedure of the was amended. One of the changes was to delete the language from subd. (a) that the times set forth in the rule were NOT extended by the method of computing time set forth in rule 5.28(A). As a consequence of this deletion, under the new rule the five-day mailing rule was inserted to apply to the 10-days' respondent has to respond to notice to request ENEC, thus giving the respondent 15 days. That, coupled with the 15 days the court has to hold the hearing under 5.30(A), means the ENEC process should take at most, 30 days. OCTC's training materials are consistent with those timelines. However, the actual scheduling of the ENEC date is not within OCTC's control. Rather, it is within the Court's control.
OCTC continues to review other policies, guidelines, and training materials for consistency. The evaluation of these documents will be an on-going effort, especially as we address other audit recommendations, such as developing benchmarks for steps in the investigation process. As we develop those steps, we will need to continue to revise relevant documents to ensure consistency with those benchmarks.
- Estimated Completion Date: April 2020
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: Partially Implemented
60-Day Agency Response
OCTC will review all of its existing policy and guidance related to investigations to ensure consistency.
- Estimated Completion Date: December 2019
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
State Bar has expressed that it will undertake the recommendation, but has not yet done so. As such, the status of this recommendation is 'No Action Taken.'
Recommendation #14 To: Bar of California, State
To further its ability to operate more efficiently and reduce the backlog of discipline cases, State Bar should use its performance measures and collected data going forward to evaluate its case processing goals and work with the Legislature to revise the 180-day statutory goal if necessary.
Annual Follow-Up Agency Response From September 2021
The State Bar conducted an analysis, and presented its case processing goals to the legislature.
The proposed statutory amendments, which included the case processing goals, as well as the analysis upon which the goals were based, have been provided to the Auditor.
- Completion Date: August 2021
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Annual Follow-Up Agency Response From April 2021
The State Bar completed the data collection for its study of OCTC workload and is currently analyzing the data. During the course of the 2020-2021 audit, the State Bar also provided the auditor's team with an overview of the issues that would need to be addressed in the creation of any new case processing goals, in particular regarding backlog. Among the issues flagged that would make any backlog target problematic is the calculation of backlog using case counts rather than using counts of attorneys. Because attorneys often have multiple cases filed against them, the backlog numbers based on counts of cases often overstate the potential harm to the public by counting a single attorney multiple times. Estimated date for discussion with Legislature about backlog target: June 2021
- Estimated Completion Date: June 2021
California State Auditor's Assessment of Annual Follow-Up Status: Pending
Annual Follow-Up Agency Response From October 2020
The State Bar has begun a workload study for OCTC in 2020, to update the 2018 study of OCTC workload that estimated staffing needs required to meet the 180 day backlog standard.
Analysis of data from the 2020 workload study will take into account the changes to the work process necessitated by the implementation of the new case management system, and will develop case weights to reflect staffing needs based on caseload distribution. The study's findings regarding staffing needs will be assessed relative to resources available based on licensing fees, which will allow the State Bar to evaluate whether it is appropriate to work with the Legislature to revise the 180 day statutory goal.
- Estimated Completion Date: 1st Quarter 2021
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The State Bar will conduct a workload study for OCTC in 2020, to update the 2018 study of OCTC workload that estimated staffing needs required to meet the 180 day backlog standard.
The 2020 workload study will take into account the changes to the work process necessitated by the implementation of the new case management system, and will develop case weights to reflect staffing needs based on caseload distribution. The study's findings regarding staffing needs will be assessed relative to resources available based on licensing fees, which will allow the State Bar to evaluate whether it is appropriate to work with the Legislature to revise the 180 day statutory goal.
- Estimated Completion Date: End of 2020
- Response Date: April 2020
California State Auditor's Assessment of 1-Year Status: Pending
State Bar has expressed its intent to implement this recommendation. We anticipate receiving the results of its planned workload study.
6-Month Agency Response
"The State Bar has begun its evaluation of case processing goals, based on the analysis of initial data in conjunction with performance metrics. This evaluation will continue as further data is available.
The recently enacted 2020 State Bar fee bill (Senate Bill 176) provides for increased licensing fees that will be used, in part, to hire additional staff in the Office of Chief Trial. Recruitment for these positions has begun. The State Bar is hopeful that the addition of this staff, combined with process improvements and benchmarks guided by data collected via the new metrics, will result in improved case processing times.
After the new staff is fully trained and users are familiar with the newly-implemented case management system, the State Bar will evaluate whether it is appropriate to work with the Legislature to revise the 180-day statutory goal.
- Estimated Completion Date: Ongoing
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: No Action Taken
60-Day Agency Response
The State Bar's performance metrics were recently adopted and, in some cases, are still being documented and defined. OCTC has already begun collecting some data and will use the new performance metrics to evaluate case processing goals; it will take some time to collect sufficient data based on those metrics to allow us to draw definitive conclusions.
Many factors impact the ability to meet the 180 day statutory goal, and meeting this goal will not be feasible in most instances while OCTC remains under-resourced. The State Bar is hopeful that the addition of resources to fund positions, combined with process improvements and benchmarks guided by data collected via the new metrics, will improve our ability to meet this goal; this impact will be delayed until new staff are fully trained. Other long-term improvements may have short-term negative impacts on case processing speed. For example, the implementation of the new case management system (CMS) will allow data collection that will inform process improvements and the creation of benchmarks; however, CMS implementation will slow case processing until users become familiar with the new system, and business practices are adapted to conform to an off-the-shelf customizable system.
Once changes identified above have been fully implemented, the State Bar will evaluate whether it is appropriate to work with the Legislature to revise the 180-day statutory goal.
- Estimated Completion Date: Ongoing
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: Pending
State Bar has described steps it has taken or is considering in order to implement this recommendation. Many of these steps should lead to State Bar implementing this recommendation in the future.
Recommendation #15 To: Bar of California, State
To better assess the security fund's revenue needs after 2020, State Bar should develop by August 2019 a methodology for estimating the payments that it is likely to make in a particular year. This methodology should consider the average length of time it will spend processing applications that are eligible for reimbursement and estimate the number of applications anticipated to become eligible for reimbursement during the course of that year.
6-Month Agency Response
Since 2014, the Client Security Fund (CSF) has paid out all funds available for reimbursement to clients who suffered a loss as a result of the dishonest conduct of the respondent attorneys. The length of time from when CSF gets jurisdiction over a matter and the matter is ultimately paid out is driven, in part, by the amount of funding available. As a result, the average time spent to resolve a case is not the best approach to determine the universe of cases the CSF would be able to process if there were sufficient funds, accompanied by the necessary funds to bring in extra staff to process the matters. The State Bar has adopted a methodology to arrive at an accurate estimate of required funding that takes into account the following factors: the number of cases in inventory at the end of the year over which the CSF has jurisdiction or will get jurisdiction during the course of the following year; the average payout for cases; and, the administrative costs for processing cases. The details of this methodology have been provided to the Auditor.
- Completion Date: August 2019
- Response Date: October 2019
California State Auditor's Assessment of 6-Month Status: Fully Implemented
60-Day Agency Response
By August of 2019, the State Bar will develop a methodology for estimating payments for the upcoming budget year by reviewing CSF statistics for the previous 3- 5 years, analyzing current inventory, and assessing CSF's finances and staffing. The methodology will consider all of the elements identified by the State Auditors.
- Estimated Completion Date: August 2019
- Response Date: June 2019
California State Auditor's Assessment of 60-Day Status: No Action Taken
State Bar has expressed it commitment to implementing this recommendation. The current response does not describe any action taken to that end, thus this recommendation's status is 'No Action Taken.'
All Recommendations in 2018-030
Agency responses received are posted verbatim.