• The California State Bar has secured a five-year, $8.25 million contract with Kaplan to develop its own bar exam system, aimed at significant cost reductions.

• The new system is projected to save the State Bar up to $3.8 million annually, addressing past financial struggles.

• The agreement comes after controversies and inefficiencies in the previous exam administration system.

The California State Bar has entered into a landmark five-year, $8.25 million contract with Kaplan to overhaul its bar examination system. This move is a strategic step to address financial difficulties that have plagued the State Bar, pushing it towards bankruptcy. The decision aims to cut costs, streamline operations, and modernize the exam process, Bloomberg Law reports.

What the Agreement Provides

• Kaplan will assist the State Bar in developing and administering its own bar exam, departing from reliance on the National Conference of Bar Examiners (NCBE).

• Kaplan will write the essay and performance test portions of the exam in addition to the multiple-choice questions, after addressing NCBE-raised copyright issues. 

• Developing its own test will allow California to give its bar exam remotely or in test centers, instead of in large convention centers across the state.

This shift allows California to customize the exam to better suit the state's unique legal landscape and the needs of its candidates. “This historic agreement allows us to provide applicants with exam options that they prefer and also helps us close a significant deficit in the State Bar Admissions Fund,” State Bar Board of Trustees Chair Brandon Stallings told Reuters.

Cost Savings

The new exam system is expected to generate significant cost savings, with projections of up to $3.8 million annually, according to Reuters. These savings come from eliminating the high fees previously paid to the NCBE for exam creation and administration. 

With reduced financial burdens, the State Bar can reallocate resources to other critical areas, such as attorney discipline and public protection.

Financial Challenges and Controversies

The State Bar's financial troubles stemmed from various inefficiencies and high costs associated with the NCBE's management of the exam. The organization faced increasing criticism over its transparency and fiscal responsibility, prompting calls for reform.

This new agreement with Kaplan marks a departure from past practices, allowing California to implement more cost-effective measures and improve the quality of its bar examination. The partnership is seen as a positive step toward stabilizing the Bar's finances.

Adoption of the NextGen Bar Exam

As California takes control of its bar exam administration, a growing list of jurisdictions has adopted or are considering adopting the NextGen bar exam, set to debut in July 2026. A total of 23 jurisdictions have so far adopted the new exam, including Florida and Illinois.

The NextGen exam emphasizes practical skills and knowledge applicable to modern legal practice. It aims to provide a more comprehensive assessment of a candidate's readiness to practice law, reflecting changes in legal education and the profession itself.