Background information and a discussion of major issues accompany recommended state minimum standards for grading as presented by an ad hoc Grading Policy Study Group to the Board of Governors of the California Community Colleges. The report first notes the diversity of grading policies among the colleges and then outlines the Group's recommendations: (1) that standardized grading symbols be implemented in a uniform statewide grading scale; (2) that the same grading symbols, definitions, and grade points be used by all community college instructors; (3) that there be a standardized meaning for the "W" (withdrawal) symbol; and (4) that probation based on excessive "NC,""I," and "W" grades be evidence of lack of academic progress. Issues considered in the development of the recommendations are then identified, including the effect of state grading standards on local school autonomy, and a discussion is presented of the use of the "W" symbol and the four withdrawal policies that were considered by the group; i.e., authorized withdrawal through the twelfth week, through the last day of classes, through the second census week, and at the discretion of the local college district. The report provides six appendices containing a summary of the group's recommendations, a minority report regarding the suggested withdrawal policy, and a roster of the study group members. (JP)