As of the fall of 1984, 40 states had by state mandate adopted some form of student minimum competency testing; 19 are or will be using test performance for the award of high school diplomas. In the other 10 states, local initiatives had implemented such testing programs on the school district level. Five states were using competency tests to determine grade-to-grade promotion. The primary challenges presented to date to determine the award of high school diplomas were filed as a result of the Florida Educational Accountability Act of 1976. Significant litigation concerning minimum competency testing of students has presented two primary sets of equal protection claims--those put forth on behalf of black students and those on behalf of "every student." Due process challenges to the use of competency tests and cases concerning handicapped students enrolled in special education programs have also arisen. In 36 states, some form of teacher competency testing has been mandated and all 14 of the other states are considering the addition of teacher competency test requirements. Litigation can be expected with equal protection and civil rights challenges. (MLF)