Establishment of a national-state system of world-class occupational skill standards is a first step in restructuring adult vocational-technical education and job training programs. Occupational skills standards provide the necessary foundation for addressing three major state policy issues: the state's proper role in private work-based training, improved effectiveness and efficiency of public programs, and development of a public-private credentialing system that promotes worker mobility. The German Dual System has been proposed as a model for transforming the vocational education and job training system in the United States. As shown by the Illinois Manufacturing Tech Prep Project, development of national skill standards should be based on certain assumptions about the role and structure of skill standards in state work force preparation programs: development of world-class standards, need for basic enabling skills and independent role performance, standards based on federal-state labor market policies, state education goals and implementation of applied academics, and skill assessment and credentialing. A national-state system of occupational skill standards can be constructed by building the following national-state systems: industry skill corporations, training occupations, occupational skill standards, professional and technical credentials, performance standards systems, and regulatory policies for public and private training providers. Appendices include three figures and sample skill standards from the Illinois Tech Prep Project. (Contains 38 references.) (YLB)