This document presents the results of a mandated study of commercialism in the schools carried out by Washington State's Office of the Superintendent of Public Instruction. The study was prompted by the issues surrounding Channel One, a 12-minute televised news program designed for secondary school students that includes 2 minutes of commercials. Schools are offered about $50,000 worth of free receiving equipment in exchange for showing the program to most students during the regular school day. At least 10 Washington schools participate; the figure is 5,308 nationwide. This document reviews commercialism, narrowing the scope to "electronically transmitted" commercialism in schools and tracing the responses of various individuals, organizations, and associations to the Channel One offering. Washington's 1989 and 1990 state policy actions regarding this issue are detailed, along with a review of policy actions in other states. The report lists six policy options and their potential positive and negative consequences. Preferred options were narrowed to the following recommendations: (1) The state's Legislature, Governor, and Superintendent of Public Instruction should take steps to provide Washington schools with appropriate educational technologies; (2) the state legislature should adopt a statement leaving viewing decisions to local school boards; and (3) the State Board of Education should establish a representative task force to address issues requiring further study. Appendices provide a bibliography of 90 references, definitions, legal precedents, educational organizations' statements, survey findings, selected legislative materials, and a literature review on the effects of television viewing on children. (MLH/Author)