Legislation linking language course attendance and passage of a language test for residence visas and citizenship, respectively, was enacted in Iceland in the early 2000s. Curricular guidelines and the language test were developed as a result. Research in other countries suggests such structures cause teachers to create "de facto" policies aligning with legislative goals. We explore here whether school administrators and teachers of adult foreigners find the curricular model and examination have affected their materials and practices. Results of our study suggest that the diffuse nature of governance of language schools for adult learners and an ideology endorsing autonomy allow administrators and teachers to assert more independence from the "de jure" policy than is found elsewhere.