The short answer is: YES! AgentSync Manage allows you to make state-specific background questions optional for your producers!
Your producers can either answer the state-specific background questions for every state/territory, or they can answer a selection of state-specific background questions based on their producer assignment. Follow the steps below to enable state-specific background settings in your Manage org:
Please Note: This process will make all state-specific background questions that are not listed on a Producer Assignment become optional for all producers with a Producer Assignment. Please discuss this action internally before taking taking the below steps.
Step 1: Click the App Launcher 9-dotted square 
in the top left corner of your Manage screen.
Step 2: Type AgentSync Settings into the search bar and click the option listed under Items
Step 3: In the General Settings section, scroll down until you see the State-Specific Background Questions label
Step 4: Click the Circle Icon next to the State-Specific Background Questions label to enable this feature
AgentSync Tip: If the icon next to State-Specific Background Questions is a Green Flag, this feature is already enabled! To turn off State-Specific Background Questions, click the Green Flag.
You're done! With this feature enabled, only the states listed on the Producer Assignment will require the state-specific background questions to be answered. All other state-specific questions will be optional.
Not sure how to create a Producer Assignment? Click here to learn how!