The report examines the Hawaii Department of Education's procedures and criteria in the identification and evaluation of handicapped children, as well as difficulties encountered in recruiting and maintaining qualified special services evaluation personnel. An introductory chapter notes the legislative authority for the study; provisions of Public Law 94-142 (the Education for All Handicapped Childen Act); and the study's methodology (a survey of other states, review of the literature, and interviews with special education administrators). Chapter 2 addresses the identification of handicapped children, noting that Hawaii's percentage of handicapped children served is less than any other state. Eligibility procedures and criteria for special education are discussed in chapter 3. The fourth chapter looks at special services evaluation personnel including multidisciplinary diagnostic teams; it also discusses the personnel shortage problem and problems in recruitment and retention. The last chapter presents recommendations, suggesting, among other things, that the Department of Education: (1) obtain expert consultation in determining whether current identification procedures need to be revised: (2) develop useful identification criteria for specific disability areas; (3) evaluate the validity and appropriateness of tests currently used; and (4) improve salaries of special education personnel. Much of the document consists of exhibits and appendixes including comparisons of Hawaii with other states, relevant Hawaii legislation, and Hawaii's guidelines for identification and evaluation. (DB)