BACKGROUND: California law has standards for physical education (PE) instruction in K-12 public schools; audits found that the Los Angeles Unified School District did not enforce the standards. In 2009, the district adopted a PE policy to comply with these standards. PURPOSE: This study aimed to evaluate the outcomes of the PE policy in district schools. METHODS: PE class observations were conducted using the System for Observing Fitness Instruction Time in the 2010–2011 and 2011–2012 school years in an income-stratified random sample of 34 elementary, middle, and high schools to assess changes in PE class size, class duration, and time students spent in moderate to vigorous physical activity. RESULTS: PE class duration increased in high-income elementary schools. Mean class size decreased in low-income middle schools. CONCLUSIONS: There was limited implementation of the PE policy 2 years after passage. Opportunities exist to continue monitoring and improving PE quantity and quality.