2009 California Government Code - Section 11040-11045 :: Article 4. Legal Services

GOVERNMENT CODE
SECTION 11040-11045

11040.  (a) This article does not affect the right of any state
agency or employee to employ counsel in any matter of the state,
after first having obtained the written consent of the Attorney
General.
   (b) It is the intent of the Legislature 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 other proceedings.
   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
proceeding.
   (c) Except with respect to employment by the state officers and
agencies specified by title or name in Section 11041 or when
specifically waived by statute other than Section 11041, the written
consent of the Attorney General is required prior to employment of
counsel for representation of any state agency or employee in any
judicial proceeding.

11041.  (a) Sections 11042 and 11043 do not apply to the Regents of
the University of California, the Trustees of the California State
University, Legal Division of the Department of Transportation,
Division of Labor Standards Enforcement of the Department of
Industrial Relations, Workers' Compensation Appeals Board, Public
Utilities Commission, State Compensation Insurance Fund, Legislative
Counsel Bureau, Inheritance Tax Department, Secretary of State, State
Lands Commission, Alcoholic Beverage Control Appeals Board (except
when the board affirms the decision of the Department of Alcoholic
Beverage Control), State Department of Education, and Treasurer with
respect to bonds, nor to any other state agency which, by law enacted
after Chapter 213 of the Statutes of 1933, is authorized to employ
legal counsel.
   (b) The Trustees of the California State University shall pay the
cost of employing legal counsel from their existing resources.

11042.  No state agency, commissioner, or officer shall employ any
legal counsel other than the Attorney General, or one of his
assistants or deputies, in any matter in which the agency,
commissioner, or officer is interested, or is a party as a result of
office or official duties.

11043.  Except as to the State agencies and laws specified in
Section 11041, whenever any law authorizes any State agency to employ
legal counsel other than the Attorney General, it shall be construed
to refer to the Attorney General. The Attorney General may assign to
the State agency assistants or deputies from his staff, under such
terms as he deems necessary to conduct the legal business of or
render legal counsel to the agency.

11044.  (a) The Legal Services Revolving Fund is hereby created in
the State Treasury. The Department of Justice shall administer this
fund. Moneys in the fund, upon appropriation by the Legislature,
shall be 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.
   (b) For state agencies, departments, or programs that are charged
for the costs of legal services rendered by the Attorney General, the
Attorney General shall charge an amount sufficient to recover the
costs incurred in providing the legal services. These funds shall be
deposited into the Legal Services Revolving Fund. Except as approved
by the Department of Finance, charges for legal services may not be
made against the General Fund, but may be made against any other fund
or special account in the General Fund.
   (c) Upon the request of the Attorney General in the form
prescribed by the Controller, the Controller shall transfer the
amount of the charges for services rendered from the agency's
appropriation to the appropriation for the support of the Attorney
General's office, provided that the Attorney General shall not
request an amount which, when added to previous charges in the same
fiscal year, exceeds the amount budgeted by the state agency for
Attorney General legal services. Payments for these charges shall be
credited to and in augmentation of the appropriation for the support
of the Attorney General's office from which the cost of the services
was or will be paid.
   (d) A state agency that has a dispute regarding charges for legal
services provided by the Attorney General shall notify the Attorney
General, in writing, of the dispute and the basis for it. The
Attorney General shall immediately provide a credit to the state
agency in the subsequent billing or billings for the amount of the
charges in dispute. No further transfer of funds shall occur with
respect to the services for which charges are disputed until the
dispute is resolved by the Attorney General, subject to the approval
of the Department of Finance.

11045.  (a) (1) Whenever a state agency requests the consent of the
Attorney General to employ outside counsel, as required by Section
11040, the state agency shall 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. The notice shall include the
items enumerated in subdivision (d).
   (2) All state agencies, other than the office of the Attorney
General, that are not required to obtain the consent required by
subdivision (c) of Section 11040, shall provide written notice of any
proposed contract for outside legal counsel to the designated
representative of State Employees Bargaining Unit 2 five business
days prior to execution of the contract by the state agency. The
notice shall include the items required by subdivision (d). In the
event of an emergency that requires the immediate employment of
outside counsel, the state agency shall provide the written notice no
later than five business days after the contract with outside
counsel is signed.
   (3) Whenever the Attorney General determines the need to employ
outside legal counsel pursuant to subdivision (b) of Section 12520,
the Attorney General shall give written notice to the designated
representative of State Employees Bargaining Unit 2 within 10 days of
that determination. The notice shall include the items enumerated in
subdivision (d).
   (b) The Attorney General shall provide the designated
representative of State Employees Bargaining Unit 2 with a written
report, at least monthly, of all consents granted to every state
agency pursuant to Section 11040.
   (c) Notwithstanding the above notice requirements, whenever any
state agency submits a proposed contract for outside counsel to the
Department of General Services pursuant to Section 10335 of the
Public Contract Code, the agency shall provide a copy of the contract
to the designated representative of State Employees Bargaining Unit
2.
   (d) "Written notice" within the meaning of this section shall
include, but not be limited to, all of the following:
   (1) A copy of the complaint or other pleadings, if any, that gave
rise to the litigation or matter for which a contract is being
sought, or other identifying information.
   (2) The justification for the contract, pursuant to subdivision
(b) of Section 19130.
   (3) The nature of the legal services to be performed.
   (4) The estimated hourly wage to be paid under the contract.
   (5) The estimated length of the contract.
   (6) The identity of the person or entity that is entering into the
contract with the state.
   (e) "State agency," as used in this section, means every state
office, department, division, bureau, board, or commission, including
the Board of Directors of the State Compensation Insurance Fund, but
does not include the Regents of the University of California, the
Trustees of the California State University, the Legislature, the
courts, or any agency in the judicial branch of government.
   (f) (1) The notice requirements of this section do not apply to
contracts for expert witnesses or consultations in connection with a
confidential investigation or to any confidential component of a
pending or active legal action.
   (2) The exemption authorized in paragraph (1) shall only apply as
long as necessary to protect the confidentiality of the investigation
or the confidential component of a pending or active legal action.
   (3) Disclosures made pursuant to this section are deemed to be
privileged communications for purposes of subdivision (c) of Section
912 of the Evidence Code, and shall not be construed to be a waiver
of any privilege or exemption provided by law, including, but not
limited to, the lawyer-client privilege, as described in Section 952
of the Evidence Code, or attorney work product, as described in
Chapter 4 (commencing with Section 2018.010) of Title 4 of Part 4 of
the Code of Civil Procedure.
   (g) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding or other written
agreement reached pursuant to Section 3517 or 3517.5, the memorandum
of understanding or agreement shall be controlling without further
legislative action, except that if any provision of the memorandum of
understanding or other agreement requires the expenditure of funds,
the provisions may not become effective unless approved by the
Legislature.


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