This document, designed to support Arizona's special education state plan, establishes minimum standards for Individualized Education Programs (IEPs), provides a measurement tool for determining compliance with federal and state requirements, and establishes criteria for determining appropriate placement in the least restrictive environment. The first section provides narrative information on the process of completing an IEP form developed by the Arizona Department of Education Special Education Section. The narrative is divided into 16 parts to correspond with the components included on the sample IEP form, and each part contains applicable compliance indicators and references to federal and state regulations. The second section consists of a sample of the IEP form. The third section outlines a decision-making process for determining an appropriate placement in the least restrictive environment, in order to meet federal and state regulations. It includes a placement form, compliance indicators for appropriate placement, an integration plan, and a flow chart. An appendix lists, in summary form, the compliance indicators for IEPs and for appropriate placement in the least restrictive environment. A second appendix offers a sample IEP form developed by the Special Education Administrator Association. (JDD)