This report presents an update of the facts surrounding adolescent alcohol and drug abuse and provides resources to assist school boards in developing effective school policies addressing the problem. The prevalence of drug and alcohol use among young people is demonstrated by the results of a survey of the high school class of 1986. Areas of concentration in the survey were cigarette use, alcohol use, and drug abuse education. The physiological and psychological effects of drug and alcohol abuse are explained. Rules against use, possession, sale and distribution of alcohol and drugs, and samples of intervention and prevention policies are included. Emphasized are ways to involve the community and tap into resources that will benefit the educational atmosphere of schools by reducing the incidence of alcohol and drug abuse. Legal issues that should be considered include unreasonable search and seizure under the Fourth Amendment to the United States Constitution; police involvement; and due process of the law protection for students and employees. Appended are (1) two bar graphs of trends in illicit drug use by seniors; (2) a glossary of terms; (3) tips on conducting local surveys of student drug and alcohol use; (4) a drug usage prevalence questionnaire; (5) a curriculum overview on preventing substance abuse; (6) four school chemical abuse policies; (7) undercover drug operations in schools; and (8) a sample policy of investigations and arrests by police. (SI)