Intended to increase the awareness of school board members to new developments in special education, the handbook focuses on the mandates of federal and California state laws and regulations on the education of handicapped persons. The history and background of P.L. 94-142 (the Education for All Handicapped Children Act) and AB 1250 (California special education law) are traced. Four issues and their implications (finance, procedural due process, individualized education programs, and least restrictive environment) are discussed. Sample policies regarding community relations, personnel, instruction, and evaluation aspects are considered. A final section lists additional sources of information about special education. Among four appendixes are outlines of proposed procedures for selection of surrogate parents and development of individualized education programs. (CL)