California Assembly Bill 3408 requires school districts to adopt their own standards in basic skills, including reading comprehension, writing, and computation. Students must be tested at least once in grades 7-9 and twice in grades 10-11. After June, 1980, students who do not meet standards will not receive a high school diploma. Assembly Bill 65, the comprehensive school finance legislation, extended the requirements to elementary schools, requiring assessment at least once in grades 4-6. Districts are required to provide additional instruction for pupils who do not meet standards. The legislation emphasizes student, teacher, and community involvement and awareness. To comply legally, districts must: (1) establish a budget; (2) review curriculum for relevance; (3) set written standards; (4) adopt alternative means of completing the prescribed course of study such as work experience, college credit, or independent study; and (5) inform the public about graduation requirements and alternatives. Districts may adopt other standards for students with diagnosed learning disabilities. Individual schools must test students, remediate those who fail, and confer with their parents. (CP)