This draft report describes the Rhode Island state plan to implement Section 772(e) of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) under Title VII, Subtitle B of the Act, which provides for education for homeless children and youth. The plan addresses the following issues: (1) school placement; (2) dispute resolution; (3) assurances of compliance; and (4) enrollment based on the student's best interests. School placement in Rhode Island is a local school district determination. Disputes over residency are resolved by the State Commissioner of Education, who can issue interim orders during the pendency of any matter. Continued school attendance in the district of original residence is being addressed through two bills in the 1989 legislative session, and assurance is made of the provision of comparable services for which eligibility requirements are met, and the maintenance and availability of school records. Criteria for "best interest" determinations will be developed in conjunction with the proposed legislation. The following legal and legislative materials are appended: (1) the McKinney Act in full; (2) Rhode Island state law on compulsory school attendance; (3) state law on residence of children for school purposes; (4) state legislation relating to residency; and (5) state legislation on the implementation of the McKinney Act. (AF)