A summary is provided of 1989 legislation of importance to California community colleges. The first section of the report provides an overview of the 1989 legislative year, including both federal and state issues. State highlights concern extensive negotiations over the allocation of funds to community colleges under the newly enacted Proposition 98, changes to the state's expenditure limit, further developments in master plan legislation, and the purpose of a higher education bond measure. Federal legislation summaries focus on educational excellence, the Carl D. Perkins Vocational Education Act reauthorization, student loan defaults, restrictions on supplemental loans to students, the Higher Education Act reauthorization, appropriations, and student financial aid. The remaining sections address California issues only, including details of 1989 bills that were passed by the legislature and signed by the governor, bills vetoed by the governor, and two-year bills. Indexes providing access to the bills by number and subject are provided. (WJT)