This three-part report presents the recommendations of the California Postsecondary Education Commission on a proposal to grant official educational status to the Academy of Entertainment and Technology, a digital media training center operated by the Santa Monica Community College District (SMCCD). Part 1 provides the Commission's conclusions and recommendations, indicating that based on Commission guidelines the Academy should be granted official status. Part 2 offers background information on the proposal, including discussions of statutory requirements for new educational campuses; the origins and unique nature of the proposal, indicating that it resulted more from efforts to meet the training needs of the burgeoning digital media industry in Los Angeles than efforts to increase educational access; the physical layout of the facility; and procedures for reviewing proposals. Part 3 provides an analysis of the proposal, including an overview of the commission's findings related to the following criteria: sufficient enrollment projections, a consideration of programmatic and geographic alternatives, adequate plans to serve disadvantaged students and ensure access, sound academic planning, projected budgets, analyses of the environmental and social impacts, the likely effects on other educational institutions, and economic efficiency. Detailed guidelines for review of proposed educational institutions, a list of advisory board members, a tentative curriculum, and letters of support are appended. (HAA)