The governing board of a regional center may hold a closed session regarding pending litigation when discussion in open session concerning those matters would prejudice the position of the regional center in the litigation. Litigation shall be considered pending when any of the following circumstances exist:

1. (a) An adjudicatory proceeding to which the regional center is a party has been initiated formally.
2. (b) A point has been reached where, based upon existing facts and circumstances and the advice of legal counsel, it is determined that there is a significant exposure to litigation against the regional center.

3. (c) Based on existing facts and circumstances, the regional center has decided to initiate or is deciding whether to initiate litigation.

   Prior to holding a closed session pursuant to this section, the regional center governing board shall state publicly to which subdivision it is pursuant.