In this document, the Institute for Educational Leadership (IEL) develops a framework to assist state policymakers, particularly, as well as other stakeholders, in initiating debate and reforms to redefine expectations and the role and responsibilities of school boards in fulfilling these expectations. These recommendations draw upon: analyses of findings from IEL's national studies of school boards in 1985-86 and 1991-92; self-assessment data from almost 300 school boards that participated in the demonstration of IEL's School Board Effectiveness Program in 1987-90; direct work with boards, urban school systems, superintendents, and state school-boards associations; discussions with education reformers and policymakers across the nation; and conclusions from participation with national task forces and other groups deliberating the issue of local education governance. Part 1 presents 15 legislative proposals considered essential to the restructuring of school boards, and part 2 contains 6 recommendations for additional legislative provisions. Part 3 offers suggestions regarding full financial-disclosure requirements for board candidates and members, board standing committees, and teacher-union influence on board elections. In general, the recommendations are based on the following propositions: (1) the state must assume responsibility for school-board reform; (2) reform should entail fundamental change; (3) reform should involve local stakeholders; and (4) reform should strengthen local governance. (LMI)