Drawing from a review of the literature, this paper addresses a series of questions related to the issue of whether state agencies, such as state boards of regents, commissions of higher education, or boards of education, should have the sole legal and official power to determine which postsecondary educational institutions can operate legally within a state and/or to determine the legality of recognition of academic degrees within the state regardless of the location of the degree-granting institution. Answers to six questions are presented and discussed: (1) What are the main subordinate academic or education policy issues raised by the major policy issue posed above? (2) What is the legal framework for academic policy in California, is it typical of other states, and is it likely to change within the next 5 years? (3) With the Marin Community College District and California as specific points of reference, what special educational and non-educational interests are likely to engage in political action either to change or preserve the current policy framework? (4) How does the current or predictable status of the economics of American postsecondary education affect the state's role in regard to the previous question; (5) Assuming that the state's role in determining policy in these areas were diminished, what consequences in postsecondary educational finance would result? (6) What conclusions can be drawn? For each question, relevant information derived from the literature review is presented first and then analyzed from a professional perspective. (LAL)