The comprehensiveness and specificity of the Education for All Handicapped Children Act (Public Law 94-142) and Section 504 of the Vocational Rehabilitation Act, and the detailed regulations that accompany them, might seem to foreclose any opportunity for states to develop and follow their own policies. However, reports from chief state school officers and their staffs reveal policy options open to the states in the areas of fiscal management, program planning and operation, and interorganizational relations. A range of alternative policy options in each of these areas is set forth in this document. The appendices contain a 15-item annotated bibliography of articles that deal with the policy issues related to the implementation and enforcement of P.L. 94-142 and Section 504, and a summary of these laws. (MLF)