Transfer rates from California's community colleges to the University of California (UC) and the California State University (CSU) are reviewed, along with information on the upper-division performance of transfer students, the results of a pilot test of transfer centers at 20 community colleges, possible future trends in transfer, and problems with measuring transfers. Significant findings include: (1) the number of students transferring and the rate of transfer from the community colleges to UC and CSU have increased during the past 5 years even though the number of potential transfer students has declined; (2) the performance of community college transfer in upper division at UC and CSU appears to have been consistently similar to that of "native" students who started their college work at those institutions; (3) while there have been gains in transfer among underrepresented students, the numbers and rates of transfer by African-Americans and Hispanics are still well below those of Caucasians and Asians; (4) transfer rates are high from community colleges that enroll more full-time students, relatively more young full-time students, and few full-time underrepresented students; are located in suburban areas; and operate transfer centers; (5) colleges that report the highest transfer rates for underrepresented students also have the best overall transfer rates, but enroll relatively few underrepresented students; and (6) the 20 colleges with transfer centers appear to have transferred substantially more students during each of the 4 pilot years. (DJD)