In October 1989 the Texas Supreme Court declared the public school finance system unconstitutional in "Edgewood ISD (Independent School District) v. Kirby" and required implementation of a new system by September 1, 1990. Four special legislative sessions resulted in the enactment of SB 1, which revises the school finance system and makes other changes affecting governance and accountability. Provisions of SB 1 are summarized in this legislative report, which reviews appropriations for fiscal year 1990-91 to finance public education and alleviate a budget shortfall in the social service agencies and describes the revenue measures enacted to finance the additional spending. An update on the July hearings before the state district court in Austin on the compliance of SB 1 with"Edgewood" requirements for an equitable system is also included. Other new laws are summarized, which cover criminal justice, natural resources, higher education, transportation, miscellaneous measures, and local bills. (LMI)