Part of a resource package designed to assist local education agency personnel in improving the quality of instruction and services to students with special needs enrolled in vocational education programs, the second of nine instructor guides examines the process of identifying and referring the student who is having difficulty adjusting to the instructional program. Steps for determining the local education agency's procedures for student identification and referral are suggested, and guidelines for developing such procedures are presented. Included are a complete form and an outline on district procedures for identifying students with special needs, completed and blank student referral forms, federal guidelines for identifying disadvantaged and handicapped persons, and federal definitions of handicapping conditions. (SBH)