This paper, number 18 in a series, chronicles the politics of school finance reform in the state of California from the mid-sixties to the passage of Proposition 13. It provides a description of the school finance setting prior to the consideration of Assembly Bill 65, including such events as the Serrano I and II decisions and the state legislature's first response to the court mandate, Senate Bill 90. The major focus of the paper is the process by which AB 65 evolved from a series of proposals through the committees and floors of the two chambers into law. The final section of the paper examines the modifications caused by Proposition 13 on the school finance system in California. (Author)