The report examines the impact of the Pennsylvania Association for Retarded Children (PARC) on handicapped children's rights to appropriate education in the state of Pennsylvania. An introductory section looks at such problems as the misclassification of children, disproportionate racial representation in the mildly handicapped population, and the permanency of placement. The mandates of P.L. 94-142 (the Education for All Handicapped Children Act) and the PARC agreement are reviewed. Chapter II outlines research procedures used to find out whether Pennsylvania's school psychologists (n=178) believed their school systems had changed as a result of the reform, to find out how school psychologists saw their own role changing after the signing of the Consent Decree, and to account for variations in the amount of self reported change. A third chapter presents school psychologists' understanding of how their systems have changed since the Consent Decree was signed and describes their reports of its impact on their own professional activities. Chapter IV attempts to account for the reasons some school psychologists reported changinq aspects of their role followinq the Consent Agreement, while others did not. Chapters V and VI examine due process under PARC from two different perspectives--the due process hearings for individual justice and the administrative appeals procedure for class justice. Among appendixes are a copy of an article titled "PARC--A Case Study of the Initial Implementation of a Major Attempt to Reform Special Education through Law," a sample psychologist's form for the special education survey, a due process coding instrument and manual, and parents' and schools' argument used in the first 168 due process hearings under PARC. (SBH)