(a) The Judicial Council shall have the authority to allocate funds appropriated annually to the State Trial Court Improvement and Modernization Fund for the purpose of paying legal costs resulting from lawsuits or claims involving the state, the Judicial Council, or a member or employee of the Judicial Council or Administrative Office of the Court and arising out of (1) the actions or conduct of a trial court, trial court bench officer, or trial court employee, (2) a challenge to a California rule of court, form, local trial court rule, or policy, or (3) the actions or conduct of the Judicial Council or the Administrative Office of the Court affecting one or more trial courts and for which the state is named as a defendant or alleged to be the responsible party.
(b) For the purposes of this section, legal costs are defined to be (1) the state’s or Judicial Council’s portion of any agreement, settlement decree, stipulation, or stipulated judgment; (2) the state’s or Judicial Council’s portion of any payment required pursuant to a judgment or order; or (3) attorneys’ fees, legal assistant fees, and any litigation costs and expenses, including, but not limited to, experts’ fees incurred by the state or Judicial Council.