Oregon state law requiring the establishment of competence requirements for high school graduation are described and clarified in this document issued by the Oregon Department of Education. A competence guidelist provides behavioral objectives associated with each of six broad competence areas, including reading, writing, mathematics, speaking, listening, and reasoning. Suggestions for measuring and verifying student competence in these areas are provided. The guidelines include sample policies, procedures, and forms to assist schools in establishing their own standards and procedures. (JEH)