The handbook is intended to serve as a basic guide to California practices in the use of contracted nonpublic school (NPS) or agency (NPA) services to provide a free appropriate public education to eligible handicapped children. The handbook covers: an overview of requirements for nonpublic, nonsectarian special education school and agency services; an overview of state certification requirements; contracting provisions and procedures; and funding provisions for contracting nonpublic school and agency services. Appendices contain a glossary, federal requirements, a sample master contract, a sample individual services contract, required courses of study for pupils in California private schools, samples of administrative materials, a copy of a relevant court consent decree, and information on interagency and residential placement. (JDD)