The Texas Education Code required the commissioner of education to conduct a study to determine the need to expand the assessment system to include the assessment in grades 7 and 8 of limited English proficient (LEP) students whose primary language is Spanish and other students of limited English proficiency. This report presents the research activities that were conducted and the findings of the study. The need to expand or modify the assessment system for LEP students was considered not only in view of the current assessment requirements but also in light of the more rigorous assessment system mandated by the 76th Texas legislature for the future. The study included a literature review, a national advisory panel of 8 experts, 6 regional focus group meetings, a statewide survey of more than 5,500 interested parties, discussions at conferences, and interviews with 11 policymakers, stakeholders, and educators. A cost-benefit analysis was also conducted. Recommendations based on the study findings are that the Spanish version of the Texas Assessment of Academic Skills (TAAS) be continued at grades 3 through 6 but not expanded to higher grades and that the law that limits the exemption of LEP from the TAAS to 1 year be reconsidered, with performance on the reading proficiency tests in English the determining factor for measuring TAAS readiness. Nine appendixes include additional information about the study and its background data. (Contains 7 exhibits and 56 references.) (SLD)