Issues surrounding the transfer function of California's community colleges are analyzed in this report. First, a historical overview is provided of the role of community colleges, their relationship to the California State University and the University of California systems, and expectations concerning transfer. Next, problems associated with transfer rates are described, including the lack of reliable baseline data, the fear among administrators of the comparison of institutional transfer rates, and inconsistencies in the definition used to calculate rates. Activities undertaken to address these problems by the Center for the Study of Community Colleges (CSCC), in Los Angeles, the statewide Transfer Assembly, and the Standing Committee on Transfer and Articulation of the Intersegmental Coordinating Council are highlighted. Next, drawing on CSCC studies, transfer rates are provided for California, Texas, and Illinois, and detailed explanations of the differences in these rates are examined, emphasizing variations among the states in expenditures, in the structure of their higher education systems, in general expectations regarding access and student flow, and in student fees. Statewide efforts initiated since 1984 to augment student flow among California's public colleges are then reviewed. Finally, forthcoming issues on transfer are analyzed, suggesting specific actions that the legislature, the community colleges, and the universities might take to enhance transfer; and reiterating the importance of consistent data collection. A partial list of recent reports on transfer in California is appended. (MAB)