As more and more cities and states diversify the educational options available to parents and students, creating magnet, open-enrollment, small school, career and technical, charter, and private school opportunities, educational choice markets need to become a part of the regulation conversation. In this report, Mike McShane examines the regulatory process and historical justifications for regulation to lay a groundwork for his four-step solution for reforming how K-12 education is regulated today. Understanding why government has regulated markets historically is important to understanding whether education needs more or less of it. The report discusses nine justifications that are often offered as reasons to regulate traditional public schools or educational choice programs. The vast majority of regulations emerge during a rulemaking process; that is, after laws are passed but before policies are created. It is important to understand the distinctions between laws, rules and policies, including who is involved in creating each. This report breaks down two main processes: standard setting and individualized screening. The author posits that there are four steps regulators can take to improve the regulatory environment surrounding K-12 education: (1) reform the standard-setting process; (2) focus on the worst actors; (3) use incentives to shape results; and (4) respect the hidden benefits of innovation. Reducing ineffective regulations for public educators should be just as important as protecting private education service providers from overregulation.