The California state legislature passed the Donahoe Act in the spring of 1960, following the completion of a major study of higher education in California. The University of California, Berkeley, reports that the California State Board of Education approved the study completed by the Master Plan Survey Team and this led to the Donahoe Act. Following the approval of the study, California's higher education community, the state legislature and the Governor of California compiled the Donahoe Act from a number of agreements they had worked out.
The National Center for Public Policy & Higher Education reports the state designed the Master plan to reduce competition in the state-sponsored higher education community within California by establishing separate institutions with defined purposes for education and standards. The three separate academic institutions were the University of California, the California State College Board of Trustees, which later became California State University, and the California Community Colleges.
The state Master Plan created specific roles for each of the three separate academic institutions. The University of California website explains that the University of California receives the sole jurisdiction in public higher education for doctoral degrees and specialist instruction in law, medicine, dentistry and veterinary medicine. The National Center for Public Policy & Higher Education explains that California State University is responsible for administering undergraduate degrees and postgraduate education through to the Master's degree level. The California Community Colleges are responsible for the administering of 2-year college courses through to grade 14.
The Master Plan introduced strict rules for enrollment in the three institutions available for public higher education in California. The University of California explains it has the ability to accept students from the top 1/8 of academic performing high school students in California. California State University can accept enrollment from the top 1/3 of California's high school graduating class, while California Community Colleges must offer education opportunities to any student who would benefit from acceptance to a course of study.
The Master Plan for Higher Education in California created an advisory board to oversee the continued work of the Master Plan. The National Center for Public Policy & Higher Education reports the establishment of the Coordinating Council for Higher Education (CCHE) as a state advisory board, but notes that the lack of power assigned to the board as a problem. CCHE has the power to review proposed academic changes to each institution's curriculum but does not have the ability to deny such changes.