Competency testing legislation is the result of citizen pressure and lacks the benefit of careful deliberation by professionals. Hastily passed legislation has forced state departments of education and school districts to accept their duty to implement competency testing programs without the appropriate resources. Many of the basic problems of competency testing include test bias, simplicity of test items, lack of in-service or other training resources, and poor communication with parents. In some cases poorly administered testing programs have resulted in racial descrimination and cultural or linguistic bias. To avoid such possibilities, school authorities must develop a process that ensures that all participants understand the program, that tests are carefully developed and piloted, and that appropriate statistical measures are employed to avoid linguistic bias and insure validity and reliability of tests. (JEH)