Minimum competency testing programs, which assess the basic skills deemed necessary for assimilation into society, have been mandated in several states. Some competency assessment devices, however, do not take handicapping conditions into account. Furthermore, disageement over what constitutes minimum competency prevails among the various state regulations. The minimum competency requirements of 26 states were examined for inclusion of the handicapped, provision of alternate testing procedures, utilization of the individual education program (IEP) to specify minimum competency instruments, and use of separate standards or special diplomas or graduation requirements. Thirty-five percent of the regulations examined include the handicapped. Sixteen states provide directions for alternate testing procedures; 12 states make reference to the IEP and specify how it is to be used. Further, a wide range of procedures exist regarding the use of competency tests as prerequisites to graduation. Special educators must have a hand in the revision of existing regulations, and in the development of new ones, to ensure their appropriateness for the disabled. (JEH)