This staff report of the California Postsecondary Education Commission summarizes legislative activities that affected higher education during the second year of the Legislature's biennial 1989-90 session. The report is divided into three parts: part one presents highlights of higher education legislation during the year; part two describes all higher education legislation signed by the Governor; and part three identifies higher education bills vetoed by the Governor. Legislation highlights pertain to: student fee policy, amendments to the Donahoe Higher Education Act, the Commission itself, improvement of state oversight of private postsecondary education, and bonds for higher education facilities. The following areas of signed legislation are summarized: student fees and financial issues; public school issues (such as college preparation programs, adult education, and teacher training, certification, and employment); public postsecondary issues; and issues affecting private postsecondary institutions. Legislation that was vetoed by the Governor covered the areas of proposed new financial assistance programs, college preparation programs, student retention, and several legislative issues affecting both public and private postsecondary education institutions. An appendix lists the members of Legislative Policy and Fiscal Committees for Higher Education. Includes a legislative index. (GLR)