While definitional and other problems make it difficult to estimate the magnitude of missing children, at least 1,500,000 children are missing from their homes each year. Further, recent studies suggest that a large number of these children will be criminally or sexually exploited. Because of the dynamics of child exploitation, and the seeming compliance of the victim, a number of misconceptions exist about both the victims and the exploiters. These misconceptions, coupled with an unwillingness to recognize the vulnerability of children to sex molesters, are the most difficult hurdles to overcome in dealing with the problem. In Kentucky, it is recommended that a State act be passed requiring law enforcement agencies to accept, investigate, and relay to a State clearinghouse all reports of missing children. Schools also should be required to establish programs to identify and locate missing children. Further, a State child sexual abuse and exploitation act should be established to provide financing for prevention programs. Additional legislation should deal with employment screening of those working with children, victim compensation for a child's psychological injuries, parental abduction, and sentencing of child molesters. 23 notes and references.