The 1981 guidelines for the California Postsecondary Education Commission's program review responsibility are presented, along with an overview of the previous guidelines. The commission's role is advisory in matters relating to the review of new or existing degree programs. The following topics are covered: the legislative mandate for the commission's role in the review of degree and certificate programs; criteria employed in defining the public interest as it relates to academic and occupational programs; six major steps in the annual program planning cycle; steps in the evaluation of regular segmental reviews of existing programs and steps in the encouragement of special intersegmental reviews; and the role of the Intersegmental Program Review Council as a forum for sharing ideas and observations among its members. Criteria for defining the public interest include: student demand, societal needs, the number of existing and proposed programs in the field, the total program cost, and the maintenance and improvement of quality. The yearly program planning cycle includes segmental preparation of 5-year program plans and commission staff review of segmental plans. Definitions are provided that clarify terms and organizations/staff names used in the report, and the appeal procedures is noted. (SW)