The evaluation of the influence of bias upon the referral, evaluation and placement (REP) process of placing handicapped children in special education programs was discussed. The representativeness of children referred for Committees on the Handicapped (COH) evaluation; social-demographic and administrative variables related to referral rates at the school level; and representativeness of the population of pupils placed in publicly funded private programs for the handicapped were examined. Hispanics and blacks were found to be discriminated against in public funding for private school placement. Examination of the policies that determine a student's qualifications for public funding would be the most cost effective remedy to reduce representational discrepancies in the REP process. Referral to COH was found to be predominantly disciplinary among blacks, while for whites it was learning problems. The existence of remedial and supplementary programs at the local school level would reduce non-essential labeling and segregation of children. The addition of bilingual staff would reduce representational disparities in public school special education. Ethnic disparity in granting of contract aid accounted for the discrepancies in ethnic representation of public school handicapped programs. (DWH)