This study identified and evaluated state legal constraints on educational productivity. Three possible legal constraints on productivity were identified: (1) state laws providing for administrative tenure, (2) state legislation on sabbatical leaves, and (3) state laws on terms and conditions of employment for teachers. Relevant statutes were identified and analyzed for this study. Proposed federal legislation that would affect these state statutes, and hence educational productivity, was also analyzed. The major conclusions and recommendations are as follows: (1) legislated terms and conditions of educational employment are responsible for significant inefficiencies that vary considerably from state to state; (2) the state legislation on educational employment is largely inconsistent with a bargaining approach to educational employment; (3) the emergence of state public employee collective bargaining legislation provides a feasible rationale for repeal or modification of statutory terms and conditions of employment that generate major inefficiencies; and (4) both state and federal public employee bargaining laws, if enacted, should resolve potential conflicts between contractual agreements and state statutes and, insofar as feasible, eliminate state restrictions on educational productivity. (Author)