Addressing the implications of quality standards and performance measures for California's adult education system, this document focuses on skill assessment and testing systems as a core performance measure. Following an executive summary, the first chapter is an introduction that includes an overview of recommendation 7 of the l989 Strategic Plan for Adult Education, which spurred the creation of this document. Chapter 2 provides background on student skill assessment and testing systems. Chapter 3 covers the criteria for evaluating skill assessment and testing systems. Chapter 4 contains 14 proposals that will lead to the development of quality standards and performance measures for adult education. Chapter 5 provides a summary of the future actions in research and planning needed to implement the proposals made in this document. The document concludes with 50 references. (CML)