In response to legislative mandate, a study was conducted in 1981 to determine the educational and fiscal effects of legislation authorizing independent study (IS) in California community colleges. Independent study was defined as learning undertaken by a student enrolled in a credit course without the immediate presence of the assigned instructor, including mediated and directed study, and television, radio, and newspaper courses. All colleges which participated in IS were asked to submit information on enrollment; instructional and staff salaries and benefits; books, supplies, and equipment costs; contract services costs; capital outlay; total average daily attendance (ADA) and cost per ADA for all instruction and for IS. To assess the educational effects of IS, colleges were asked to provide information on IS courses by subject matter, mode of instruction, and opening enrollment and number and percentage of completers in each area of instruction. Major findings included: (1) cost per ADA of IS varied from $79 to $5,114, with television and mediated instruction most expensive; (2) about 1,000 separate offerings in IS were provided during 1979-80, with the largest number of offerings in directed study, but the largest enrollment in television courses; (3) IS instruction was distributed fairly evenly over subject areas; (4) IS retention rates were only slightly lower than in general curriculum courses. IS regulations and sample study forms are appended. (KL)