The Oregon State Board of Education has rejected the use of cut-off scores on a proficiency test to establish minimum performance standards for high school graduation. Instead, each school district is required to specify--by local board adoption--minimum competencies in reading, writing, listening, speaking, analyzing, and computing. These requirements are to become effective with the graduating class of 1978. Furthermore, school districts are encouraged to take the responsibility for three other assessment requirements, as specified by the Oregon Minimum Standards Model. The requirements are: (1) identifying performance indicators for each graduation competency; (2) developing or selecting measures; and (3) establishing standards--how well, how many, what percentage, how often. The concept of local control in choosing minimum competencies is very strong. Several implementation problems have occurred because teachers were more oriented toward specifying school skills, rather than life skills as suggested by the Standards. Nevertheless, both school personnel and the general public view the Standards positively. The appendix includes excerpts from the Minimum Standards and an outline of Oregon graduation requirements. (Author/CP)