Presented are findings of a study to monitor programs for the educable mentally retarded (EMR) in California, with emphasis on the numbers of racial and ethnic minority students placed in EMR classes. The document is divided into six sections: an introductory section explaining impetus for the study; Section II with background information on the California Advisory Committee involvement in the investigation, EMR demography, and the increase in educationally handicapped enrollment; Section III on state legislative and judicial decisions regarding EMR programs and inappropriatedly placed minority (particularly Black) children; Section IV on the California Department of Education's administrative responsibilities in terms of the assessment and evaluation of students for placement in EMR programs; Section V on the California Master Plan for Special Education designed to correct such needs as clearer delineation of responsibility at the state, county, and local levels for the provision of special education; and a final section listing recommendations which include reviews and audits providing regular and systematic statistics on the ethnic composition of educationally handicapped classes in California school districts. Appended are a statement of concern by the Bay Area Association of Black Psychologists and additional comments from the California Department of Education. (SBH)