This study was undertaken with funds from Title IV-A of the Library Services and Construction Act in order to improve library facilities and services in the eleven institutions Oregon maintains for the mentally ill, retarded, handicapped, and violaters of the law. Data were collected on questionnaires and by visits made to each institution. The report gives a narrative analysis of the background and history of library service generally in correctional and mental institutions and those for the handicapped followed by analysis of the questionnaire and commentary on the library situation and services in each of the institutions. Out of the study emerged a Three Phase Program for Improvement placed under the supervision of the State Library. A copy of the questionnaire used in the survey is appended. (Author/CC)