The purpose of this document is to report on the implementation of the provisions of House Bill 739 and Senate Bill 1161. The provisions of the legislation are consistent with the strategic directions adopted by the University of North Carolina Board of Governors and the State Board of the North Carolina Community College System. The two boards approved a "Proposed Plan to Further Simplify and Facilitate Transfer of Credit Between Institutions." The report lays out the requisites for transfer in the following areas: (1) transfer of general education core course for non graduates; (2) transfer agreements for major or professional specialty course; (3) transfer of associate in fine arts degree course credits; (4) transfer of associate in applied science degree course credit; and (5) transfer of course not originated at NC community colleges. The report also discusses the transfer information system created by the Transfer Information System sub-committee. The committee's role is to determine the status of the appropriate technologies to facilitate the electronic transfer of information, academic records, and admissions applications between NC community colleges and UNC institutions. The committee is currently focusing on email network accessibility for transfer counselors and students, online catalogues, and computerized common transfer application, which can be transmitted electronically. (MZ)