Background information and a status report are provided on the second-year activities of the Transfer Center Pilot Program (TCPP). The TCPP was initiated in 1985 to further intersegmental efforts to stimulate the number and percent of community college students who transfer to four-year institutions. The TCCP operates through highly visible centers which identify, encourage, and assist potential transfers, with particular emphasis on underrepresented students. The centers, which are operating on 20 community college campuses, 14 California State University campuses, 9 University of California campuses, and 12 independent universities, provide information to students, staff, and faculty on admissions requirements and the transferability of courses between community colleges and the other segments of higher education in California. The TCPP report contains: (1) initial findings concerning the operations and problems of the centers; (2) background information on the funding and rationale for the project; (3) an overview of the basic elements of the transfer center model; (4) a description of the design and initial results of an external evaluation of the project, which includes formative impressions about operations and a discussion of the problems in conducting a longitudinal TCPP evaluation; and (5) a discussion of steps to be taken. (EJV)