The importance of diversity and inclusion to higher education was the focus of intense legal and social scientific analysis in the decisions of the United States Supreme Court concerning affirmative action at the University of Michigan. The leadership of higher education and several other sectors of society offered overwhelming support, and a significant amount of evidence, for the proposition that student diversity--specifically the racial and ethnic diversity there at issue--is a compelling interest. The academic leaders of the University of California have similarly concluded that inclusion is central to its mission, and at Berkeley, Chancellor Robert J. Birgeneau has made it among his chief priorities. The immediate challenge is how to secure this dimension of institutional mission despite the constraints on means thought to be created by Proposition 209, which in 1996 amended California's constitution to prohibit most forms of voluntary public sector affirmative action, denominated "preferences." The purpose of this brief report is to provide an analytical framework for evaluating diversity-related programs at the University of California-Berkeley in light of federal legal principles and applicable state law to help ensure that these programs effectively advance institutional goals, appropriately balance legal risk, and protect the rights of all persons. This report includes: (1) A summary and analysis of the prevailing federal and state legal standards applicable to the use of race in the higher education context, including Proposition 2094; and (2) A framework for cataloging and analyzing current and potential diversity-related programs with respect to their potential impact on diversity and their level of legal risk. (Contains 9 resources and 36 footnotes.) [Foreword by Christopher Edley, Jr.]