Cal. Education Code § 56857.5

(a) Community school agencies providing school programs on state hospital or developmental center grounds shall begin the orderly transfer of all state hospital or developmental center pupils whose individualized education programs indicate that a community school program is appropriate, to schools located in the community. (b) All pupils covered by subdivision (a) shall be served in community schools other than on state hospital or developmental center grounds, and the contracting provisions of this chapter shall apply only to pupils in community school programs other than on state hospital or developmental center grounds. (c) Waivers to subdivisions (a) and (b) may be granted only when approved by the State Superintendent of Public Instruction and either the Director of the State Department of Developmental Services, for individuals receiving developmental disability services pursuant to Division 4.1 (commencing with Section 4400) of the Welfare and Institutions Code, or the Director of State Hospitals, for individuals receiving mental health services pursuant to Division 4 (commencing with Section 4000) of the Welfare and Institutions Code.