A proposal to create a state-funded work-study program for California postsecondary education is presented, including guidelines for program eligibility and responsibilities. The California Postsecondary Education Commission's proposal recommends: the use of both nonprofit and profit-making organizations as potential employers; employment that is related to student's career aspirations and skills; funding for summer employment and for tutorial and other services in the elementary and secondary schools; and maximum compatability of the program with existing California financial aid programs. In contrast to the federal College Work-Study Program, the state program would involve a different sector of potential employers and different criteria for student participation. In addition to providing guidelines for institutional, employer, and student eligibility and responsibilities, responsibilities of the California Student Aid Commission are suggested. Institutional responsibilities include: the employer/institution agreement, referral and placement of students, restrictions on placement and compensation, state and employer share of compensation paid to students, and carryover of funds. (SW)