The paper provides a framework for a nonbiased placement system for students with suspected handicapping conditions. The suggested approach is designed to help school districts determine whether the appraisal system is contributing to the disproportionate placement of minority group students in special education classes. Nineteen steps in the appraisal process are identified and briefly described: initiation of referral; collection of anecdotal observations; notification of parents or guardians; implementaton of alternative classroom strategies; building level (screening) referral; regular education alternatives; district level referral; multidisciplinary assessment team preparation; multidisciplinary assessment of handicap; multidisciplinary assessment for educational implications; multidisciplinary assessment for educational programing; preparation of an integrated report; scheduling of the IEP meeting and furnishing of the assessment report to the parents; special education eligibility decision; ethnic and cultural considerations; production and approval of the IEP; placement in the least restrictive environment; provision of instructional and/or related services; and evaluation of student progress. The importance of a districtwide tracking system to monitor the appraisal process is stressed. (CL)