In an attempt to fundamentally reform the state’s transfer of students between the California Community Colleges (CCC) and the California State University (CSU) system, the Legislature and Governor enacted Chapter 428, Statutes of 2010 (SB 1440, Padilla). The legislation requires community colleges to create two-year associate degrees for transfer. Students who earn such a degree are automatically eligible to transfer to the CSU system as an upper-division (junior) student in a bachelor’s degree program. Our review finds that since the legislation was enacted, CCC and CSU have made some progress, but additional work needs to be done by both segments to achieve SB 1440's intended goals. For their part, community colleges need to increase the number of associate degrees for transfer they make available to students. It is incumbent on CSU, meanwhile, to maximize the number of academic programs to which these degrees can be applied. Toward these ends, we recommend the Legislature provide additional guidance and clarification to CCC and CSU on their responsibilities, as well as continued oversight to track their progress.