The Texas Education Agency bulletin examines aspects of physical education for students with handicaps. Following a statement of philosophy, the guidelines address the following topics: assessment (characteristics of motor assessment instruments); the developmental program plan (program organization, descriptors and skills for essential elements); physical education instructional arrangements and settings (nine possibilities, including regular class with minor modifications and regular class with individual or low ratio instruction); health and safety considerations for students with physical or health impairments; and options for service delivery in adapted physical education. Answers to commonly asked questions on such topics as teacher role and responsibility and curriculum content are followed by a list of considerations for program design (personnel, curriculum/program design, student assessment, resources, and staff development). Among appended material are summaries of seven exemplary programs in physical education and a descriptive list of motor assessment instruments. (CL)