Issues surrounding disciplinary exclusion of seriously emotionally disturbed children from public schools are addressed, along with applicable federal legislation, court cases, and Office of Civil Rights (OCR) opinions. Exclusion is defined as the removal from, or the prohibition of, participating in the public school program in part or entirety, including suspension and explusion. Two overlapping pieces of federal legislation and their regulations are reviewed: Education of the Handicapped Act, as amended by P.L. 94-142, and Section 504 of P.L. 93-112, the Rehabilitation Act of 1973. The following issues are examined: (1) What is the relationship of a child's behavior to his/her identification as being handicapped, particularly for the seriously emotionally disturbed? (2) Are there limits to a school's responsibility to provide a free appropriate public education to a handicapped child? (3) How should disciplinary matters related to handicapped children be decided? (4) What procedural safeguards are required if a school elects exclusion as an alternative? Court cases and OCR opinions are discussed that pertain to the concepts of the least restrictive environment for the child, the right to a free appropriate public education (FAPE), and due process. Based on directions suggested by the courts and OCR for school districts, it is concluded that any permanent exclusion of a handicapped student probably violates the FAPE requirement. Ten annotations of court cases are appended. (SEW)