Supplemental report language (SRL) of the 2002-03 Budget Act directed the Legislative Analyst’s Office (LAO) to convene a working group to (a) reexamine the California Postsecondary Education Commission’s (CPEC) statutory responsibilities; (b) identify ways that the commission can effectively perform its responsibilities within its budgeted resources; and (c) consider recommendations put forth by the Joint Committee to Develop a Master Plan for Education related to current CPEC functions and the development of a successor agency. This report presents the primary issues identified by the working group and the relevant findings and policy options discussed.