State Agency Legal Services

Article 3 deals with legal services. Section 11040 provides a statement of legislative intent that overall efficiency and economy in state government be enhanced by employment of the Attorney General as counsel for the representation of state agencies and employees in judicial and administrative adjudicative proceedings.

In addition, the Legislature finds that it is in the best interests of the people of the State of California that the Attorney General be provided with the resources needed to develop and maintain the Attorney General’s capability to provide competent legal representation of state agencies and employees in any judicial or administrative adjudicative proceeding.

Section 11041 exempts certain state entities (17 of these are listed in this section) from the prohibition of employing any in-house counsel with respect to bonds.

Section 11042 prohibits any state agency from employing any in-house counsel to act on behalf of the state agency or its employees in any judicial or administrative adjudicative proceeding in which the agency is interested, or is a party as a result of office or official duties, or contract with outside counsel for any purpose, unless the agency has first obtained the written consent of the Attorney General.

In addition, the Attorney General may provide written consent for a state agency to employ in-house counsel to represent the agency or its employees in any judicial or administrative adjudicative proceeding in whatever manner the Attorney General deems most effective and consistent with the intent of this article. However, a state agency must obtain written consent for the use of outside counsel for a matter or matters for which the outside counsel is to be engaged before the execution of each contract with the outside counsel for the matter or matters.

Section 11044 created the Legal Services Revolving Fund in the State Treasury. The Department of Justice administers this fund. Moneys in the fund, upon appropriation by the Legislature, are used by the Attorney General for investigation and litigation activities taken on behalf of the state agencies employing the legal services of the department and for investigation and litigation activities funded through judgments or settlements.

In addition, for state agencies, departments, or programs that are charged for the costs of legal services rendered by the Attorney General, the Attorney General must charge an amount sufficient to recover the costs incurred in providing the legal services. These funds are then deposited into the Legal Services Revolving Fund.

A state agency that has a dispute regarding charges for legal services provided by the Attorney General is required to notify the Attorney General, in writing, of the dispute and the basis for it. All disputes are to be resolved in accordance with the State Administrative Manual and, upon resolution of the dispute in favor of the state agency, the Attorney General provides a credit to the state agency for the amount of the charges in dispute.

Section 11045 provides that, whenever a state agency requests the consent of the Attorney General to contract with outside counsel, the state agency must within five business days of the date the request is transmitted to the Attorney General, provide the designated representative of State Employees Bargaining Unit 2 with written notification of the request.