This publication focuses on California Assembly Bill 3408, legislation mandating secondary schools to develop performance standards and performance tests for students. The paper analyzes progress made in implementing the legislation in California and outlines some of the barriers to successful implementation. The author explains several testing formats and procedures. He discusses the problem of setting standards too high. He notes that some students do not yet take the tests seriously and that some teachers do not feel responsible for student performance. Other problems are that follow-up results are too delayed, some parents do not cooperate, and parent-teacher conferences present communications difficulties. The author suggests ways to reinforce minimum skills and to offer remediation. He discusses the need for instructional and content validity, for reciprocity between districts, and for test security. Continuous modification of test instruments is recommended. Other concerns are for making the testing a positive experience, anticipating collective bargaining issues, reexamining the curriculum, using successful public relations techniques, and issuing alternative diplomas. (Author/JM)