Public Law 94-142 provides safeguards to assure that materials and procedures utilized for the purposes of evaluation and placement of handicapped children be selected and administered so as to avoid racial and cultural discrimination. This publication is designed to provide the educational community with information to assist them in bringing about needed change in evaluation practices. Through a review of educational and psychological literature, court decisions and legislation, the historical and theoretical underpinnings of current testing practices as applied to minorities are reviewed. The concept of equal educational opportunity is examined by reviewing litigation, laws and school financial patterns. The social and political history of IQ testing is reviewed. This review is supplemented by a discussion of current theoretical formulations with respect to IQ testing of the minority child. The standardization critieria most frequently used to classify children for special education are described. In order to show the legal consequences of biased assessment, litigation that has challenged testing practices and a study by the U.S. Office of Civil Rights on the overrepresentation of minority group children in special classes are summarized. References are provided throughout the document. (Author/GC)