This report outlines current research on teacher policy, summarizes legislation from the 1997 legislative session, and forecasts teacher policy trends for 1998. The report is intended to assist states in examining and improving teacher policies by providing information about how other states have approached the issue. Current research demonstrates that teacher quality is the most significant factor affecting student achievement, so the education and qualifications of teachers is an important factor in determining student success. The 1997 legislative session saw numerous states address key components of teacher policy, including teacher certification, salary and other benefits, professional development, and tenure and dismissal. The year 1998 promises to be another busy year for education and teacher policy according to a recent National Conference of State Legislatures (NCSL) survey. Legislators will again work to increase teacher quality by creating more rigorous teacher certification requirements. Projected teacher requirements and the demand for new educators provide states with a window of opportunity to reshape the composition of their teacher corps over the next decade. States hope to enhance future teacher quality through more rigorous licensure and professional development requirements and to establish recruitment programs to diversify the teaching population. (Contains 9 references.) (SM)