Enacted as a part of the Rehabilitation Act of 1973, Section 504 states, "No otherwise qualified individual with handicaps...shall, solely by reason of her or his handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance." Prior to 1990, Section 504 contained an amendment that stated drug and alcohol use were physical or mental impairments. Under this amendment, students who were current drug or alcohol users fit the definition of "handicapped." This document describes the history of section 504, discusses problems with the section, and includes recent amendments. The 1990 amendments narrow the definition of "handicapped" to exclude students who are currently engaging in the illegal use of drugs. The amendments also give districts the authority to take the same disciplinary action against any handicapped student (pertaining to the use or possession of illegal drugs) as they would take for a nonhandicapped student. (LAP)