This study analyzed state policies on the identification and education of gifted students as reflected in legislation, regulations, rules, recommendations, and guidelines provided by 49 states. The elements examined include: (1) state mandated services, (2) district plans for the gifted, (3) gifted education as part of special education, (4) philosophy or rationale, (5) definitions of gifted and talented, (6) identification procedures, (7) programs for the gifted, (8) differentiated curriculum and instruction, (9) counseling and other support services, (10) parent involvement, (11) program evaluation, (12) teacher education and certification, and (13) state funding for the gifted. The analysis indicated that all states have formulated policies that support education of the gifted and talented but that considerable variability among states exists with respect to specific components. Major recommendations are made in the following areas: establishing challenging curriculum standards; providing high-level learning opportunities; ensuring access to early childhood education; offering extended opportunities for economically disadvantaged and minority children; providing teacher training and technical assistance; and matching the high performance of similar students throughout the world. (Contains 76 references.) (DB)