Hi Ducky!
I'm a late comer to this thread, but wanted to throw my 2 cents in anyway. Forgive me for being disjointed, as I can't keep all the posts in my mind at once.
I live in PA, where GT is mandated, but not enforced. That said, we require per mandate that things be in place to find GT kids, inform parents, etc. We take legal credit for having blurbs in handbooks, and don't even try to find kids until 2nd grade, despite state law starting in K.
Our current (school specific) focus on finding the kids is relatively new, even though our law is not. With NCLB, state testing is required starting in 3rd (as you well know!) We also test 1st and 2nd using the Stanford (SAT-10).
We now have a relatively new matrix system that screens kids in early 2nd based primarily on their SAT-10's from 1st grade. Based on those scores, we also look at teacher recommendations, and if the kid makes it that far, they get a parent survey. We then screen on the K-BIT, and with scores above about 125 we full test on the WISC-IV, admitting only those kids that full scale at 130+. I'm not sure what our SAT cutoffs are, but as you can see, the kids won't be provided services regardless unless their IQ test tops 130.
That said, a parent has the legal right at any time to request full testing, despite lower SAT scores or no SAT scores at all (K/1st student). Our mandate is not ideal, but it is more than most states have. I have mixed feelings about some of the rigid cutoffs, having seen some close candidates turned down, but it is important to have limits somewhere. I just wish there was some way to legislate common sense into the equation.
For me personally, the biggest problem comes after the identification. We offer a pullout "program" as a standard course of action. The program has come a long way, and is currently a nice program all said and done. However, the kids miss regular class time rather than replace inappropriate class time, and even if it's a good fit (as it is for my girls), it's not ideal because of that. For HG+ kids like my son, it just barely scratches the surface of their needs.
Here's a link to our legal-ese if you are interested.
http://www.pacode.com/secure/data/022/chapter16/chap16toc.html