Public libraries are currently the conduit for local, state, and federal funds used to support reference referral and other reference-related functions in California. Given potential funding constraints, this 5-month study expanded its original scope--to assess the cost effectiveness and efficiency of the Bay Area Reference Center (BARC) and the Southern California Answering Network (SCAN)--to an examination of BARC and SCAN in the context of the existing reference referral system. This system involves local public libraries and 17 System Reference Centers to which reference questions are referred before they are passed along to BARC and SCAN. The study focused on: (1) defining the nature of reference-related services provided by BARC, SCAN, and the System Reference Centers; (2) describing the major differences in reference services between BARC and SCAN and those of the System Reference Centers (e.g., unit cost, level of service); (3) determination of whether public libraries would be willing to allocate scarce resources to provide statewide access to information; and (4) the involvement of key stakeholders in the discussions and in the development of recommendations. In addition to a detailed discussion of the purpose of the study, its methodology, and the resources used, this report presents a summary of the findings, two models for reference referral that are proposed for a new organization structure, and a transition plan for the implementation of a new structure. Six tables and two figures are included in the body of the report, and ten survey tables summarizing data collected during the study follow the text. (KM)