In July 1973, Montana adopted a new constitution that gave the Board of Regents greater autonomy in directing the Montana University System. The purposes of the move were: (1) to remove as much as possible the governance of higher education from the sometimes capricious influence of politics, and (2) to attempt to insure the development of a coordinated and efficient system. This report provides a summary of the numerous and diverse tasks accomplished or initiated during the first three years under the new governance structure. Activities in the area of academic affairs include: curriculum proposals, collaborative programs, program review, Ph.D. program review, transferability of credits, role and scope statements, curriculum reform, continuing and vocational education, and community colleges. Fiscal affairs activities highlighted include accountability and a uniform accounting system. Activities in the area of legal affairs include development of a legal staff, collective bargaining, administrative proceedings, legislative liaison, litigation, and preventive legal work. In the management area, activities included development of policy, public information, federal programs, facilities planning, computer capability, cooperation with other agencies and boards, special services, and staff expansion. The activities of the Commission of Postsecondary Education that were reviewed and the recommendations implemented are reported. (JMF)