Part of a series on the legal and governmental foundations governing education of handicapped and gifted children, the booklet focuses on bilingual special education. A review of the literature covers studies which have been conducted in a variety of bilingual program settings in the United States and several other countries. Cited among findings are that children involved in learning environments employing the use of two languages perform at a level equal to or higher than their monolingual counterparts, and although handicapped children of limited English proficiency have not been properly served by the public schools, there are a number of exemplary programs. Federal legislation and court cases relating to bilingual special education are examined. Significant issues in the provision of bilingual special education are discussed, including accessibility, resources, cost of programs, personnel preparation, parental and community support, and program evaluation. Finally, current requirements according to the Office for Civil Rights are listed; and examples of policy options are offered relating to screening, acceptable tests, testing guidelines, bilingual advocates, establishment of primary needs, use of parents' language, establishment of primary responsibilities, comprehensive services, use of existing services, bilingual special education, supplementary services, tutorial services, parent and community involvement, accessibility, removal of barriers, exit criteria, inservice training, teacher certification, and teacher training. (SW)