Online learning holds promise for providing new educational opportunities to a wide range of students across the country. The rapid expansion of K-12 online learning, however, threatens to outpace the development of appropriate state-level policies that serve to fulfill the promise. As the National Association of State Boards of Education warned more than two years ago, "In the absence of firm policy guidance, the nation is rushing pell-mell toward an ad hoc system of education that exacerbates existing disparities and cannot assure a high standard of education across new models of instruction." This study was undertaken to ascertain what states are doing to address the need for policy guidance. The report provides information on specific topics of K-12 online learning policy and practice as well as analysis and discussion of the issues. References also provide listings of Legislation and web sites. Appended are: (1) Glossary of Online Learning Terms 94; (2) California Assembly Bill 294: Online Classroom Pilot Program 98; (3) Florida 2003 Statute: Florida Virtual School 1002.37 102; (4) Florida K-8 Virtual School Pilot 107; (5) Minnesota Legislation 124D.095: On-line Learning Option 108; and (6) Ohio eCommunity School and eCourse Legislative Recommendations. [Funding for "Keeping Pace With K-12 Online Learning: A Snapshot of State-Level Policy and Practice" was also provided by Illinois Virtual High School, and Wisconsin Virtual School.]