The movement towards state-mandated minimum competency testing peaked in 1977-1978. Activity now centers on implementation: most programs will be implemented by 1980-81. To initiate programs, twenty-four states have used the state board approach, 20 enacted legislation, and six have passed both board and legislation mandates. Only Maine, Kansas, and Florida have repealed or modified their programs but court decisions in other states may alter or slow programs. State boards and departments of education are now involving advisory committees, taking care that standard setting is not arbitrary. Departments of education are primarily responsible for test construction or selection, although board approval is necessary. There is a trend toward school district inservice training for test interpretation. States now uniformly test grades 3, 5-6, 8-9, and 9-10, reflecting an emphasis on an early warning system. The diploma sanction, popular in 1975-77, is now less important, partly because states are concerned about litigation. Generally, state legislation mandates testing of basic skills: reading, writing, and arithmetic; boards are more likely to require daily living skills. Less uniformity exists on communication skills. Litigation potential, legislation and board overlap, and politics, make it hard to compare implementation. (State implementation charts are appended). (CP)