This report discusses family policy issues raised by the implementation of Public Law 99-457, Part H, the Infants and Toddlers section of the Education of the Handicapped Amendments of 1986. The report is the outcome of a policy options work conference in which a small group of knowledgeable parents and professionals identified key policy issues. The three issues selected as most important by the group are discussed. These issues are: (1) the definition of services to which children and families are entitled; (2) the role of the case manager; and (3) the identification of family strengths and needs. Policy options available to deal with each issue are outlined, along with the positive and negative consequences of each option. Includes 10 references. (JDD)