Presented by the North Carolina State Department of Public Instruction are the rules governing programs and services for children (handicapped and gifted) with special needs. Included are guidelines for the following areas: responsibilities and organization of the Division for Exceptional Children; organization and administration of local programs; special education allotments and special funds (such as for facilities and transportation); local equal educational opportunities plans; program areas for children with special needs; program and service alternatives; policies and regulations governing education expense grants for exceptional children; and procedures for referral, screening, assessment and placement. Also outlined are policies governing the organization and administrative structure of the Governor's School of North Carolina, procedures for review (of placement decisions), and a model structure for appeals to the State Superintendent of Public Instruction from decisions of local school boards. (LS)