This paper traces the Colorado Legislature's House Bill 1187, Article 13 from its inception through to its present implementation and addresses various pertinent issues in regard to accountability. The legislation mandates accountability in higher education within Colorado. The issues discussed are the rationale and underlying concepts, schools of research in the literature, and the policy's relation to and effect on the internal environment of institutions of higher education. In addressing the process of HB 1187's development, an overview is presented that outlines the outcomes sought, the strategies involved, and the roles of key policy makers and the people who have implemented those policies, as gleaned from interviews with them. Finally, the views on this issue and its meaning for higher education are provided. Contains a 37-item bibliography. (GLR)