This is a neat idea.
http://www.theblaze.com/stories/2013/04/09/in-oklahoma-a-dem-lawmakers-joke-has-led-to-an-interesting-idea-championed-by-republicans/?utm_source=twitter&utm_medium=story&utm_campaign=Share%20Buttons
This would be a good idea if the state was required to exclusively use the the money in the proposed fund. So they could only use the money to defend laws that we specifically give them, instead of using all the money it takes to defend all the ridiculous bills they pass each year!