This report is submitted pursuant to the "sunset" review procedures enacted by Chapter 1270, Statutes of 1983 (SB 1155). As part of the sunset process, Chapter 1270 requires the State Department of Education (SDE) to review the instructional materials program and submit its findings to the Legislature by December 1, 1983. Chapter 1270 also requires the Legislative Analyst to review the department's report and submit his own findings, comments, and recommendations regarding the program to the Legislature. The first chapter of this report describes the textbook adoption process. In Chapter II, we discuss the funding for local assistance and state operations in the instructional materials program. Chapter III consists of a commentary on the recommendations made by the SDE in its sunset review report. Chapter IV summarizes our conclusions regarding continuation of the instructional materials program.