This report presents conclusions and recommendations of a study of possible criteria to define educationally underserved populations in Texas in light of the 1994 Court decision (Hopwood v. Texas) ending the use of racial quotas. The study identified qualitative variables related to social and cultural factors and 10 quantitative criteria (such as socioeconomic background, first-generation college status, and financial status of student's school district). The study came to eight major conclusions including that: (1) there is no single criterion or combination of criteria that will produce the same level of minority participation as prior to the Hopwood decision; (2) institutions using selective admission procedures may have decreased minority applications; and (3) the use of standardized tests (such as the Scholastic Assessment Tests (SAT) and the American College Testing (ACT) program) unduly limits admissions of underserved populations. Twenty-one specific recommendations are made and organized into those for the Texas Higher Education Coordinating Board, for the legislature, and for Texas institutions of higher education. After an executive summary, the report presents the full qualitative and quantitative analyses of alternative diversity criteria (including extensive data tables). Appended is a survey of the research on the predictive validity of College Board admissions tests. (Contains 54 references.) (DB)