This report puts forth the position of the Office of the Chancellor of the California State University (CSU) regarding data needs for constructing California Community College (CCC) transfer rates, indicating that the CSU's preferred transfer rate would indicate the annual incidence of new transfers, convey efficiency across time, and, in combination with other data, describe student flow from two-year institutions to four-year institutions. Three proposed methods for measuring transfer rate are described in the report: an eventual transfer rate; a partial rate with a subjective denominator; and a partial rate with an objective denominator. In addition, seven other rates are evaluated in terms of four issues construct validity, group equivalence, time equivalence, and maturation validity. These seven methods of calculating transfer rates are termed the "traditional definition"; the Transfer Assembly model; BW Associates'"Effective Transfer Rate and "TC Project Evaluation" models; the University of Michigan model proposed by Lee and Frank; three alternatives proposed by the CCC Chancellor's Office; and the measures recommended for inclusion in the CCC accountability model using longitudinal data. The report concludes in favor of the Transfer Assembly model. (JMC)