This handbook establishes the Montgomery County Public Schools procedure for implementing the Maryland state law on early identification, Section 98C, added to Article 77 of the Annotated Code of Maryland by House Bill 234. This law mandates that each student entering the first year in any primary grade in any public school must be evaluated for the purpose of identifying learning disabilities. Further, it is stated that the schools are to develop programs specifically adapted to meet the needs of the children after they have been assessed. A basic plan for implementing this mandate includes conducting early screening of all students, administering continuous assessment of students, and developing instructional strategies based on the screening and/or assessment findings. Information relating to the different aspects of this implementation process is provided in the various sections of this handbook. As a child enters a primary grade, the teacher uses a variety of sources to learn about the child's developmental level in order to plan appropriate programs. Classroom teacher observation is one of the best sources of information about children's levels of achievement. Utilizing this knowledge, the Maryland Systematic Teacher Observation Instrument was designed. It summarizes each child's performance and can be completed by the teacher as daily classroom routines are in progress. A copy of this instrument is included. (MV)