This study was based on a literature search, a survey of correctional agencies in the United States and Canada, and interviews with State agencies and organizations in Texas. Research revealed that most mentally retarded offenders can be diverted from prison to community treatment programs while still ensuring the community's safety. Few such alternatives were available, however, and jails and prisons did not have the resources to handle developmentally disabled offenders. The study also noted that few criminal justice professionals were able to identify mentally retarded offenders, and these person's rights were often violated. Although the motivation for mentally retarded offenders to commit crimes was generally the same as for normal offenders, mentally retarded offenders were often irrational in implementing their crimes. These offenders were exploited by their peers and often abused. A disproportionately high percentage were poor and from a minority group. Estimates of the number of mentally retarded persons in prisons varied widely. Intelligence measures used, qualifications of testing personnel, instruments and the testing environment, and the time of the testing all influenced such estimates. The report concludes that present classification systems, vocational training courses, and probation and parole systems are not appropriate for mentally retarded offenders. It is recommended that they be identified at their first point of contact with the criminal justice system, as well as at each case processing stage, thus allowing assignment to programs that meet their needs. A survey of local practices in five Texas counties, recommendations, and approximately 70 references are provided. The appendixes contain relevant Texas laws, interview forms, a community-based model for mentally retarded offenders, and training modules for criminal justice personnel.