The development and implementation of the Dallas Independent School District's Basic Objectives Assessment Test (BOAT) are described. Beginning in 1979, this minimum competency test was administered system-wide to all students in grades 8-12 (except for those enrolled as special education students), and beginning in 1983 it will be used in conjunction with a functional literacy course as a graduation requirement. For the BOAT, functional literacy was defined as the effective application of basic skills and knowledge (mathematics, reading, science/health, and social studies) in the following common life activities: (1) consumerism; (2) community; (3) medical; (4) home; (5) employment; (6) government; and (7) information sources. Test items were written for each of 57 BOAT objectives, pilot-tested to help identify necessary revisions, and pooled. Judgmental and empirical data supported a standard of 70% for the BOAT when used as a graduation requirement. BOAT results were classified as "secure," and neither BOAT forms nor sets of actual items were disseminated by the district Department of Research and Evaluation to the schools or the public. A set of sample items are appended. (RL)