This report presents the results of a survey of Louisiana and North Carolina college students and education officials to ascertain their perceptions regarding the use of minimum competency testing programs and to determine the effects of such programs on black students. Questionnaire and interview data were collected between September 1985 and March 1986. The majority of students, most of whom were black, felt that the competency tests were fair, necessary, and included content studied in school. They did not believe the tests motivated students to study harder or teachers to have higher performance standards for students. Nor did they think the tests caused students to change their course selections. In fact, they reported that the tests were too easy. The perceptions of Louisiana and North Carolina education officials regarding the use of competency testing were generally similar to those of the students. The report is divided into the following sections: (1) review of literature on testing; (2) background on competency testing programs in Louisiana and North Carolina; (3) methodology; (4) general findings; (5) student testing requirements and students' perceptions regarding competency tests; (6) education officials' perceptions and school district policies and practices regarding competency tests; (7) interrelationships among students competency test impressions, college enrollment status, aspirations, and personal and educational characteristics; (8) conclusions and implications. Also included are an extensive bibliography and six appendices which provide information under the following headings: State Testing Legislation, Study Sites, Questionnaire, Interview Protocols; and Tables (showing the test taking distribution in the states and other test data). (PS)