Since 1975, the Center for the Study of Higher Education and the National Council of State Directors of Community and Junior Colleges have cooperated in an annual study to identify and analyze pertinent state legislation affecting two-year colleges throughout the United States, to examine the issues which attract public policy action and attention, and to identify trends. An analysis of 1989 legislation, based on information provided by officials in 36 states and the District of Columbia, revealed the following: (1) the 37 respondents reported a total of 1,063 pieces of legislation affecting the two-year institutions, with a range from one piece in Idaho, Indiana, and Massachusetts to 169 pieces in California; (2) 60.6% of the proposed 1989 legislation was enacted, and 35% were pending; (3) common areas of legislative concern were finance, administration, personnel, students, and academic programs; (4) an increase in academic program-related legislation along with a decrease in the administration and finance issues was evident in items considered in 1989; and (5) similarity among topics of legislation across state lines suggested considerable cross-state communication among state-level public policy makers. The report includes tables on legislation introduced by state and by topic area. (JMC)