This model state legislation is the third report issuing from the Illinois Policy Project on Accreditation, Certification, and Continuing Education, and is a statement of the state's role in the professional development of inservice teachers. The legislation itself is preceded by an essay on the state's role in supporting continuing education of school personnel and the importance of continuing education at this time. The essay centers around teacher motives for continuing development and state concern in improving staff quality at a time of low teacher turnover. The model legislation is presented in two parts. Part A provides state support for continuing education programs in local schools or school districts, limited only by the target population, i.e., student contact personnel in local schools, and by the intended purpose, i.e., the program must be designed to improve the job-related knowledge and skills of the target population. Part B is an experimental program designed to determine the benefits of extended school-site training for beginning teachers, a prescriptive-categorical program that will contribute to the determination of future policy related to the preparation of teachers. Both parts encourage cooperation in program planning and operation among school districts and institutions of higher education. Several alternate funding procedures are provided for each part due to the diversity of financial situations and desired scopes of activities among the various states. Commentary is included in order to clarify policy issues and various sections of the legislation. Appendices include: (1) a glossary of terms and (2) an extensive bibliography of selected sources in the areas of continuing education, teacher education programs, research related to teacher effectiveness, and legal issues relating to the preparation, certification, and employment of teachers. (MJB)