The state Assembly ratified the payment of nearly $1.4 million to settle the 5-year-old case of a former teacher of mentally ill students at Camarillo State Hospital who alleged that she was fired because of racial discrimination. By a 75-0 vote, the Assembly approved the measure by Sen. Diane Watson (D-Los Angeles) to settle the suit with the teacher, Betty Andrews of Los Angeles. The bill, previously approved by the Senate, now goes to Gov. George Deukmejian for his consideration. Jeffrey Fuller, a deputy attorney general, labeled the settlement "extremely good" for the state, citing a federal court jury decision last November awarding Andrews $2.5 million. Andrews, who is black, was fired in September, 1982, for 15 incidents of alleged misconduct, such as not reporting a student's theft of a candy bar. According to a Senate analysis of the bill, the jury determined that the charges were not based on fact and that Andrews' supervisor had engaged in acts and made statements which showed a pattern of racial prejudice.