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Professional licensure examination administration (California State Bar)

The bar exam broke. The pass rate jumped from 36% to 65%.

Summary

California's State Bar didn't tell its own leadership that AI-generated questions were being added to the February 2025 bar exam. A content-validation process meant to catch bad questions missed problems in a fifth of them. When technical failures compounded the damage, the State Bar raised the exam's pass rate from about 36% to about 65% -- and spent $5.1 million administering an exam meant to save money, plus up to $5.2 million more in lost revenue for the 4,200 test-takers affected.

By Nero · July 13, 2026
In 30 seconds

The problem: the State Bar's Admissions Fund was heading toward insolvency, so the February 2025 exam went remote to save money. The approvals: the State Bar hired Kaplan for questions and Meazure Learning to run it. Where it goes wrong: a topic gap got filled with AI-written questions hidden from leadership, the platform crashed, and the pass rate went from about 36 to about 65 percent. How it's caught: the California State Auditor, July 2026.

1. THE PROBLEMSTATE BAR OF CALIFORNIAAdmissions Fund heading towardinsolvencyTwo in-person exams a year averaged$7.7 million, 2022 to 2024STATE BAR OF CALIFORNIAHybrid model estimated at$4.4M for both 2025 exams,…May 2024 estimate; the February 2025exam goes remote-or-in-person to…2. THE APPROVALSSTATE BAR OF CALIFORNIAKaplan contracted to write newmultiple-choice questionsThe national question bank cannot begiven remotelySTATE BAR OF CALIFORNIAMeazure Learning contracted toadminister the examSTATE BAR ADMISSIONS OFFICEACS Ventures asked to fill thetopic gapsThe psychometric contractor writes thequestions Kaplan's contract…3. WHERE IT GOES WRONGSTATE BAR ADMISSIONS OFFICEGap questions written with AI;leadership not toldThe admissions office knew and did notpass it up to executive leadershipSTATE BAR OF CALIFORNIAOne expert reviewed all 200questions40 later flagged for performanceissues; 19 scored anyway; 29 pulledSTATE BAR OF CALIFORNIAMeazure hired without businessrequirements or pretest…November 2024 pretest freezes andcrashes unresolved; 53% of…STATE BAR OF CALIFORNIAFebruary exam alone: $5.1M,more than the $4.4M…Plus up to $5.2M in lost revenue fromrefunds and fee waivers4. HOW IT'S CAUGHTCALIFORNIA SUPREME COURTSupreme Court orders scoreremedies; pass rate about…Score imputation and a lowered rawpassing score after the…CALIFORNIA STATE AUDITORState Auditor Report 2025-051,July 2026State Bar agrees with everyrecommendation, disputes…CALIFORNIA SUPREME COURTLawsuit against Meazure openas of June 2026; NextGen…Unused fee waivers expire after theJuly 2026 examcut costsremote needs new questionsremote needs a platformtopics missingAI, undisclosedone reviewerunverifiedrefunds, waiversquestions pulledexam-day failuresauditedcostedwhat happens next
In 2 minutes

The problem ·The State Bar of California's Admissions Fund was heading toward insolvency. Two in-person exams a year cost an average of $7.7 million from 2022 to 2024. A May 2024 estimate said a hybrid remote-or-in-person model would cost about $4.4 million for both 2025 sessions, against $8.4 million in person. The February 2025 exam went hybrid to save money.

The approvals ·Because the National Conference of Bar Examiners does not allow its questions to be given remotely, the State Bar contracted Kaplan Exam Services to write new multiple-choice questions and Meazure Learning to administer the exam. When Kaplan's contract left legal topics uncovered, the admissions office had ACS Ventures, its psychometric contractor, write the missing ones. Those contracts are where the money entered.

Where it goes wrong ·Three controls were missing. Kaplan's contract never listed every topic, so ACS Ventures filled the gap with AI-generated questions, and the admissions office did not tell executive leadership. One expert reviewed all 200 questions instead of one per subject; 40 were later flagged, 19 counted anyway, 29 pulled. Meazure Learning was hired without written business requirements and without confirming it had fixed the freezes and crashes from a November 2024 pretest. In the State Bar's survey, 53 percent reported crashes and 57 percent freezes.

How it's caught ·The California Supreme Court ordered score imputation and a lower raw passing score; the pass rate went from about 36 to about 65 percent. The State Auditor's July 2026 report put the February exam alone at $5.1 million, above the $4.4 million estimated for both 2025 sessions, plus up to $5.2 million in lost revenue from refunds and fee waivers. The State Bar agreed with every recommendation and disputes certain findings; its lawsuit against Meazure Learning was still open in June 2026.

An exam changed to save money cost more than the two-exam budget it replaced, and the remedy was moving the pass line for the 4,200 people who sat it. Next checkpoint: the Supreme Court's decision on the NextGen exam for July 2028.

In February 2025, California's bar exam failed so badly that the State Bar raised the pass rate from about 36% to about 65%⧉ to compensate. A state audit released this month found the exam used undisclosed AI-generated questions, a flawed review process, and a testing platform that crashed repeatedly -- and cost far more than the money-saving switch was supposed to save.

How AI ended up in the exam

The State Bar of California switched to a hybrid remote-or-in-person format for its February 2025 bar exam, partly to reduce costs and shore up its Admissions Fund⧉. Because the national exam-question bank does not allow remote administration, the State Bar hired Kaplan Exam Services to write new multiple-choice questions -- but Kaplan's contract never specified all the legal topics the exam needed to cover. To fill the gap, the State Bar turned to ACS Ventures, a firm it already used for psychometric consulting, which wrote the missing questions using artificial intelligence. The State Bar's own admissions office knew this -- and did not tell its executive leadership.

Pass rate before and after adjustment
36% -> 65%
The State Bar raised the pass rate after technical and administrative failures affected a 'significant portion' of the 4,200 test-takers
February 2025 exam cost
$5.1M
More than the $4.4M the State Bar had estimated for BOTH its Feb. and July 2025 exams combined under the hybrid model meant to cut costs
Lost revenue from remediation
up to $5.2M
Per the audit's detailed breakdown (Figure 17): $2.0M in refunds, $2.1M in used fee waivers, $1.2M in unused fee waiver value -- separate from the $4.9M pool the Board approved as available
The pass rate nearly doubled after the exam failed
February 2025 California bar exam pass rate, before and after scoring adjustments
Original pass rate
36%
Adjusted pass rate
65%
Source: California State Auditor, Report 2025-051, Transmittal Letter
View data as table
Technical and administrative failures during the February 2025 bar exam -- including undisclosed AI-generated questions and a flawed content-validation process -- caused the State Bar to raise the exam's pass rate from about 36% to about 65% of test takers.
Original pass rate36%
Adjusted pass rate65%

The validation process that missed a fifth of the questions

A content-validation process was supposed to catch bad questions before they counted toward anyone's score. Instead of following the national exam's practice of assigning topic-specific experts, the State Bar had a single subject-matter expert review all 200 questions⧉. After the exam, the psychometric contractor identified 40 of those 200 questions -- one in five -- as having scoring problems. The State Bar included 19 of them anyway, and ultimately pulled 29 questions from scoring altogether.

Crashes, freezes, and a lawsuit

The State Bar also hired ProctorU Inc. (dba Meazure Learning) to administer the exam without first spelling out its own technical requirements, and without confirming Meazure Learning had fixed freezes and crashes flagged during a November 2024 test run. On exam day, media reports the audit cites describe the platform crashing repeatedly -- one test-taker said he had to restart more than 30 times -- along with screen lag, error messages, and broken copy-paste tools. The State Bar's own post-exam survey⧉ separately found 53% of respondents reported computer crashes and 57% reported freezes. In May 2025, the State Bar sued Meazure Learning, alleging the vendor misrepresented its capacity and breached its contract; the case was still open as of June 2026.

The exam meant to save money cost more than expected
State Bar bar-exam administration costs
Estimated cost, hybrid model (Feb. + July 2025 combined)
4,400,000
Actual cost, February 2025 exam alone
5,100,000
3-year average annual cost, both exams (2022-2024)
7,700,000
Source: California State Auditor, Report 2025-051, Cost section
View data as table
In May 2024, the State Bar estimated a hybrid remote/in-person model would cost $4.4 million to administer both its February and July 2025 exams combined -- versus $8.4 million for in-person-only. Instead, the February 2025 exam alone cost $5.1 million, not including pending legal costs, exceeding the full two-exam hybrid estimate by itself.
Estimated cost, hybrid model (Feb. + July 2025 combined)4,400,000
Actual cost, February 2025 exam alone5,100,000
3-year average annual cost, both exams (2022-2024)7,700,000

The exam meant to save money

The switch to remote testing was meant to save money. The State Bar had estimated⧉ a hybrid model would cost $4.4 million to run both its 2025 exam sessions combined, versus $8.4 million in-person-only. Instead, the February exam alone cost $5.1 million -- not counting the ongoing lawsuit. On top of that, the audit separately tracked up to $5.2 million in lost revenue: $2 million in direct refunds, plus the value of fee waivers the State Bar approved for test-takers to use on later exams.

Where the audit's 'up to $5.2 million' lost-revenue figure comes from
Components of Figure 17's lost-revenue accounting
Refunds provided to test-takers
2,000,000
Value of used fee waivers
2,100,000
Value of unused fee waivers (expire after July 2026 exam)
1,200,000
Source: California State Auditor, Report 2025-051, Figure 17
View data as table
The audit's Figure 17 breaks its 'up to $5.2 million (rounded)' lost-revenue estimate into three tracked components. This is a distinct, more detailed figure from the audit's own separate Summary-section estimate of 'at least $4 million' -- and both are separate from the $4.9 million pool the State Bar's Board of Trustees approved as the total ceiling of fee waivers available for use, not all of which has been used or is reflected in this breakdown.
Refunds provided to test-takers2,000,000
Value of used fee waivers2,100,000
Value of unused fee waivers (expire after July 2026 exam)1,200,000

The takeaway

  • One exam cost more than the estimate for two. The February 2025 exam alone cost $5.1 million -- more than the entire $4.4 million the State Bar had budgeted for both its 2025 exam sessions combined.
  • The AI use was known internally and hidden upward. The admissions office knew AI-generated questions were going into the exam and didn't tell State Bar leadership.
  • The State Bar agreed with every recommendation -- but not every finding. Its own written response says it 'disagree[s] with certain findings,' noting the audit never interviewed Meazure Learning's staff -- a boundary the auditor calls deliberate, since the vendor's conduct is now the subject of separate litigation.

The audit states two different lost-revenue figures in different sections: 'at least $4 million' in its Summary, and a more detailed 'up to $5.2 million (rounded)' in Figure 17, broken into refunds and fee-waiver values. This piece reports the Figure 17 breakdown as the more complete accounting and discloses both figures rather than picking one silently. The $4.9 million the State Bar's Board approved as a fee-waiver pool is a separate authorized ceiling, not the same as the $3.3 million in fee-waiver value Figure 17 tracks as used or unused -- this piece does not treat those as interchangeable. The audit notes it did not evaluate the merits of the State Bar's ongoing lawsuit against Meazure Learning, and neither does this piece.

Sources(3) ▾
  • California State Auditor, The February 2025 Bar Exam: The State Bar's Poor Implementation of Changes to the Exam Negatively Affected Test Takers (Report 2025-051) (2026-07-09) — The California State Auditor's own investigation, required by a state law amendment after the February 2025 bar exam's technical and administrative failures. Covers question development, exam administration, the use of AI to draft questions, and program costs. Fetched directly and converted with pdftotext -layout. auditor.ca.gov · original document
  • State Bar of California, State Bar Announces February 2025 Bar Exam Results (2025-05-05) — The State Bar's own official announcement of the February 2025 General Bar Examination results (55.9% GBX pass rate, highest spring rate since 1965), attributing the outcome to score-imputation and raw-passing-score remedies ordered by the California Supreme Court on May 2, 2025 after the exam's technical failures. Corroborates the pass-rate-adjustment claim from the audited entity's own primary record. Note: reports the overall published pass rate (55.9%), which is a different measure than the audit's pre-/post-remedy 36%->65% comparison (Fig. 15). calbar.ca.gov · original document
  • Supreme Court of California (California Courts Newsroom), California Supreme Court Issues Statement on February Bar Exam (2025-03-04) — Statement from the Supreme Court of California (Judicial Branch, independent of both the State Auditor and the State Bar) acknowledging 'troubling reports of technical failures, delays, and other irregularities' during the February 2025 bar exam and committing to determine appropriate remedies. Independently corroborates the technical-failure trigger that led the Court's subsequent May 2, 2025 order to lower the raw passing score (to 534) and impute scores -- the mechanism behind the pass-rate increase the audit reports. newsroom.courts.ca.gov · original document
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