BILL NUMBER: AB 164 VETOED DATE: 09/29/2002 SEP 29 2002 To Members of the California State Assembly: I am returning Assembly Bill 164 without my signature. This bill would require the State Department of Education (SDE) to establish and administer a statewide program of grant funding to establish alternative dispute resolution (ADR) programs for special education. Although I support establishing ways to resolve disputes, current law already allows for the non-adversarial resolution of special education issues through mediation prior to filing for due process. This bill appropriates $300,000 to the SDE for administration of the ADR program and could result in local assistance costs between $17.8 and $13.1 million for three years and ongoing costs of between $3.3 million and $4.4 million annually. Since the proposed 2002-03 budget appropriates $8.9 milli on for dispute resolution services including mediation and fair hearing services, and this bill would redirect federal funds, which are necessary to provide essential services to students with disabilities, I am unable to support this measure. Sincerely, GRAY DAVIS