Some of the general considerations and requirements for the establishment of a testing policy and procedures for a large education system are presented. Testing policy is considered necessary to establish a common understanding of the position of testing in the education program, the facilitation of the use of tests for academic gain, and to protect the civil and legal rights of all students, minority group students in particular. The following areas are discussed: (1) scope; (2) guidelines and assumptions; (3) student testing and program evaluation; (4) tests and Indian education objectives; (5) testing as feedback; (6) tests and student rights--multiple approaches to behavior sampling, the Indian student, human and civil rights, the use of criterion-referenced tests; (7) the relationship of tests to social values--fundamental postulate, social policy corollary, human potentiality and actuality, absolutism as irrational defense corollary, English language corollary, law of multiple effect corollary; and (8) testing policy factors--introduction, the Indian student as culturally dependent, the Indian student as developmentally human, English language proficiency, bilingual/bicultural programs, the requirement for special training and personnel requirements for testing, the requirement for a BIA-wide policy. A bibliography of 17 items is provided. (For related documents, see TM 002 526-533, 535-541.) (KM)