Truth in testing, competency testing, and intelligence tests constitute the central topics of this newsletter. The authors review a report prepared by the Education Commission of the States on truth-in-testing legislation and litigation, covering recent efforts at the state and federal levels to open the testing process to public scrutiny. They then describe a recent suit over fair treatment of handicapped students in competency testing programs, before discussing the Hoffman v. N.Y.C. Board of Education decision on competency testing and educational malpractice. Finally, the document examines the opinion of a federal district court in Larry P. v. Riles with respect to racial bias in intelligence tests, federal statutory law, and legal standards for test validation. (RW)