Governor Cannot Unilaterally Cancel Mental Health Services for Special Ed Students

A 16-year-old student with emotional disturbance and Asperger's Syndrome was entitled to residential mental health services under California's AB 3632 law, but the Orange County Health Care Agency stopped providing those services after Governor Schwarzenegger vetoed their funding and announced the mandate was "suspended." The ALJ ruled the Governor had no legal authority to suspend the AB 3632 mandate — only the Legislature can do that — and ordered OCHCA to immediately resume all services, including funding the student's placement at a residential treatment center.

What Happened

Student is a 16-year-old with emotional disturbance and a secondary diagnosis of Asperger's Syndrome. His emotional condition involved extreme anxiety, poor social skills, defiance, refusal to do schoolwork, and an inability to maintain relationships. Under California's AB 3632 law (Government Code Chapter 26.5), the Orange County Health Care Agency (OCHCA) is responsible for providing mental health services to students like Student whose IEPs require them. OCHCA had already assessed Student and recommended he be placed in a residential treatment center (RTC). Both OCHCA and Student's school district, Newport-Mesa Unified, agreed that the Family Life Center (FLC) in Petaluma — a certified non-public residential school — was an appropriate placement.

Then, in October 2010, Governor Schwarzenegger signed the state budget but used his line-item veto to eliminate the funding for AB 3632 services. He also announced that the AB 3632 mandate itself was "suspended." Orange County officials immediately instructed OCHCA to stop delivering AB 3632 services. OCHCA stopped attending Student's IEP meetings, withdrew from the placement process entirely, and formally discharged Student from its care. The school district stepped in and funded the entire cost of Student's placement at FLC — both the educational and mental health portions — while the family filed for due process against OCHCA.

What the District Did Wrong

OCHCA's withdrawal from Student's services violated his right to a free appropriate public education (FAPE). Under AB 3632, county mental health agencies have a legal duty to provide mental health services to eligible students, manage residential placements, and fund the non-educational costs of those placements. OCHCA had already found Student eligible, recommended an RTC, and agreed that FLC was appropriate. Its only reason for stopping services was the Governor's announced suspension of the mandate — but the ALJ found that announcement had no legal force.

The ALJ ruled clearly that the Governor exceeded his authority. While the Governor has the power to reduce or eliminate items of appropriation using his line-item veto, he does not have the power to suspend a substantive statutory mandate. AB 3632 is a substantive law directing how government agencies must act — it is not itself an appropriation. Under the California Supreme Court's decision in Harbor v. Deukmejian, only the Legislature can suspend such a mandate, and the 2004 ballot measure Proposition 1A made that explicit by changing the California Constitution to say "the Legislature" — not the Governor — must either fund or suspend state mandates. The Legislature had in fact chosen to fully fund AB 3632 in the 2010-2011 Budget Act. The Governor's attempt to override that choice was unconstitutional. OCHCA therefore remained legally obligated to serve Student throughout this period and had no valid basis for withdrawing.

What Was Ordered

OCHCA was ordered to immediately resume all of its duties to Student under AB 3632, including attending his IEP meetings, managing his case, funding its share of Student's placement at the Family Life Center, and delivering all services described in the September 16, 2010 Client Service Plan (which included residential placement, family therapy, group therapy, individual therapy, monthly case management, medication evaluation, and quarterly visits by an OCHCA representative).
The order was effective immediately upon issuance.
Student was declared the prevailing party.

Why This Matters for Parents

A Governor cannot legally cancel your child's AB 3632 mental health services by veto. Only the Legislature has the constitutional authority to suspend the AB 3632 mandate. If a county mental health agency tells you it is ending services because of a gubernatorial action, that is not a legally valid reason — the agency's duty to your child continues.
County mental health agencies cannot unilaterally decide they are relieved of their AB 3632 obligations. If OCHCA or any other county agency withdraws from your child's IEP process, stops attending meetings, or discharges your child without a proper legal basis, that is a violation of your child's right to FAPE and can be challenged through due process.
If your child needs residential placement, the county mental health agency is responsible for funding the mental health portion of that placement. The school district pays for the educational costs, but AB 3632 requires the county to pay for the mental health costs. If the county refuses, the district may be required to cover those costs in the interim — and the county can be ordered to repay them.
You can file a due process hearing against a county mental health agency, not just a school district. OAH has jurisdiction over AB 3632 disputes. If your county agency stops providing services your child's IEP requires, due process is an available remedy — and as this case shows, parents can win.

What Happened

What the District Did Wrong

What Was Ordered

OCHCA was ordered to immediately resume all of its duties to Student under AB 3632, including attending his IEP meetings, managing his case, funding its share of Student's placement at the Family Life Center, and delivering all services described in the September 16, 2010 Client Service Plan (which included residential placement, family therapy, group therapy, individual therapy, monthly case management, medication evaluation, and quarterly visits by an OCHCA representative).
The order was effective immediately upon issuance.
Student was declared the prevailing party.

Why This Matters for Parents

A Governor cannot legally cancel your child's AB 3632 mental health services by veto. Only the Legislature has the constitutional authority to suspend the AB 3632 mandate. If a county mental health agency tells you it is ending services because of a gubernatorial action, that is not a legally valid reason — the agency's duty to your child continues.
County mental health agencies cannot unilaterally decide they are relieved of their AB 3632 obligations. If OCHCA or any other county agency withdraws from your child's IEP process, stops attending meetings, or discharges your child without a proper legal basis, that is a violation of your child's right to FAPE and can be challenged through due process.
If your child needs residential placement, the county mental health agency is responsible for funding the mental health portion of that placement. The school district pays for the educational costs, but AB 3632 requires the county to pay for the mental health costs. If the county refuses, the district may be required to cover those costs in the interim — and the county can be ordered to repay them.
You can file a due process hearing against a county mental health agency, not just a school district. OAH has jurisdiction over AB 3632 disputes. If your county agency stops providing services your child's IEP requires, due process is an available remedy — and as this case shows, parents can win.