This administrator's guide is intended to aid local school administrators who formulate policies and procedures for dealing with drug-involved students. The guide suggests alternatives for those engaged in such policy-making rather than mandating a single course of action for all school districts. The guide is not intended to limit a community's prerogative to determine its own rules and regulations under existing state and federal law. Drug policies should be flexible and possess a high degree of individual application, as simplified, rigid, and general policies are frequently unworkable. Any action designed to help students meet and cope with their problems must steer a course between two concerns: what is best for the individual and what is most desirable for the total school population. In the sections on individual topics--the role of school personnel with respect to confidentiality, pupil records, the school's relationship with the police, student rights, procedures regarding suspension and expulsion, and procedures regarding readmission--an attempt is made to state the issue clearly, to refer to pertinent law, to suggest possible approaches to policy, and to explain, where necessary, the reasons for the approaches taken. A sample school policy is appended. (Author/IRT)