This document analyzes legislation enacted and proposed in 1977 relative to community and junior colleges nationwide. A survey of community and junior college state directors and actual legislative documents supplied data about state legislation and the impact of federal legislation. Following an introduction, the second section of the report reviews seven important areas that attracted state legislative attention and action: finance, administration, physical facilities, institutional growth, personnel, students, and academic programs. The third section summarizes the effects of federal legislation and regulations on two-year colleges relative to federal aid, vocational education, the Comprehensive Education and Training Act, student aid, privacy of information, veterans, handicapped access, desegregation, and the State Postsecondary Education Planning Commissions. A summary and conclusions follow. During 1977, state legislatures were far more active in regards to postsecondary education than in the two preceding reporting periods, 1973-75 and 1976; 41 states reported 578 pieces of legislation proposed or enacted, compared with 394 in 1973-75 and 287 in 1976. Administrative and financial problems received the most attention. The number of personnel bills substantially increased. Appendices include an annotated list of proposed and enacted legislation for each state and a subject index to legislation. (TR)