The purpose of the Drug-Free Schools and Communities Act of 1988, Part B, is to establish, implement, and improve programs of drug abuse prevention, early intervention, rehabilitation referral, and education programs in elementary and secondary schools. The act also aims to support innovative, community-based programs of coordinated services for high-risk youth. In enacting Part B, Congress recognized that prompt action by schools, families, and communities can promote the goals of a drug-free generation and a renewed commitment to excellence in education. Part B, providing state assistance, can play an important role in these efforts. To carry out the purpose of Part B, states must use their federal grants to make subgrants to local districts for establishing, operating, and improving local anti-drug efforts in schools; make subgrants to, and contracts with, like-minded community-based organizations; and engage in development, training, technical assistance, and coordination activities. This booklet explains the scope of Part B, including state eligibility requirements, and activities supported by the governor and the state of Hawaii. Information is also provided about grant allocations, needs assessment and improvement plans, target student populations, grant applications and amendment procedures, the administration of Part B programs, and the District Advisory Council's role. Four appendices furnish appropriate forms, including a grant application. (MLH)