Based on a survey of state directors of community and junior college education in all 50 states and Puerto Rico, this five-part report presents an analytical and descriptive review of 1982 state legislation and court decisions affecting two-year colleges. Part I presents study methodology, which involved requests for copies of legislation affecting the state systems, information on key legislative issues expected for 1983, and copies of recently decided court cases with potential impact on the two-year colleges. Part II analyzes findings as they relate to: (1) finance; (2) administration; (3) the construction and operation of facilities; (4) institutional expansion and name changes; (5) personnel benefits and collective bargaining; (6) student rights, regulations, fees, and financial aid; and (7) academic programs, curriculum, accreditation, and certification. Part III examines administrative legislation and its impact on institutional autonomy, while part IV analyzes the intent and impact of legislation on community colleges, providing a review of 1981 and 1982 findings, and a comparison of findings for 1978, 1981, and 1982. Top-ranking legislative issues are projected in part V for 1983, and, in part VI, eight 1981-82 court decisions affecting community college personnel, students, finance, or administration are reviewed. Part VIII presents summary conclusions. Appendices include abstracts of relevant legislation and the survey instrument. (AYC)