This report presents information concerning Arizona policies and programs for chronically ill or disabled children who need educational services in the home. It contains a report of a school district survey, summaries of applicable laws related to handicapped students receiving homebound services, recommendations for policy development, a model homebound policy, and eight recommendations for homebound program development. The survey of 170 school districts sought to determine the extent and nature of existing policies and programs and to identify program strengths and weaknesses. Results indicated that approximately half of the responding districts did not have a homebound policy, with larger districts being more likely to have a policy and a program. The duration of instruction for homebound students was most often cited as 4 hours weekly. The section on applicable laws describes the provisions of federal statutes and regulations, administrative decisions, and state laws. Appendices contain a copy of the survey, tables of survey responses by district (comprising approximately half of the report), and a list of four suggested readings. (JDD)