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This report is the third of a series of annual reports by the National Education Policy Center (NEPC) on virtual education in the U.S. The NEPC reports contribute to the existing evidence and discourse on virtual education by providing an objective analysis of the evolution and performance of full-time, publicly funded K-12 virtual schools. Specifically, the NEPC reports: analyze the universe of proposed state bills related to virtual education; assess the research evidence that bears on K-12 virtual teaching and learning; describe the policy issues raised by available evidence; analyze the growth and performance of full-time virtual schools; and, offer recommendations for future research.