Among the behavior management challenges in schools today is the question of how to deal with substance abuse among youth. Facts about student alcohol and drug use are provided in this handbook. Watching for school and home related behavioral indicators of drug use is an immediate concern for schools. Drug use follows a six-stage continuum: no interest, interest, experimental use, regular use, harmful involvement, and dependency. Proper responses to substance use situations require a policy that considers the situation type (five are described), decision-making process, and documentation procedures. How school personnel can respond at the classroom, building, and district level is discussed and procedural considerations are outlined. Basic communication ingredients and skills are discussed to help ensure successful communication with students about substance abuse. Training components of substance abuse education and awareness for students, faculty, parents, and the community are delineated. Four principles of policy development and an 11-step development process follow. Three sections address areas essential to policy content: student conduct and discipline; prevention; and identification and intervention. A sample alcohol and drug use student behavior and discipline policy and examples of community resources for assistance in substance abuse situations conclude the handbook. (13 references) (EJS)