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It was introduced by the Labour government after there was a majority of 'Yes-Yes' for the creation of a parliament for Scotland with tax varying powers in the Scotland referendum, 1997. The Act sets out the legislative competence of the Scottish Parliament, and has a schedule that lists the powers it doesn't have (called reserved matters) which remain the preserve of Westminister. The Act was passed on November 17, 1998, and received royal assent two days later on November 19.
An amendment to the Act was proposed by the Scottish Parliament (Constituencies) Act 2004 to end the link between the number of MPs at Westminster and the number of MSPs elected on first pass the post system.