This paper addresses the history of California's Assembly Bill 1725 (AB 1725) legislation and describes its major provisions. Signed in 1988 by Governor George Deukmejian, AB 1725's focus is to emphasize the new role of California community colleges as postsecondary institutions committed to transferring students, offering remedial courses, and providing vocational training. Other issues addressed by AB 1725 are the shift in power from the legislature back to the local board, and a number of concerns related to faculty and the hiring of personnel. The law stipulates the future role that affirmative action will play in hiring practices, highlighting the goal that the workforce reflect the proportionality of the state's adult population. Another topic is the 75:25 ratio, which refers to the goal that 75% of instruction be taught by full-time instructors and 25% by part-time instructors. The last main provision of AB 1725 is an adjustment to the financing of the college system using a new "program-based funding" procedure. New formulas also were developed to change the way the community colleges would receive funding, with an emphasis placed on local control. (Contains 11 references.) (AS)