This monograph briefly describes state legislation and administrative rules concerning competency-based education. Defeated legislation is also included. In 1978-79 California, Nevada, and New York are requiring graduating seniors to pass a proficiency exam before receiving a diploma. In Nevada and New York similar exams are administered to determine student promotion. Nine states use a statewide proficiency exam as an indicator of student progress and the need for remedial classes. Alaska, Colorado, and Missouri have an optional exam. Eleven states, including Oregon, require that minimum competency standards be developed to measure students' progress. A chart details the activities of all the states in competency standards development and competency testing. Included in the appendix are the titles of the legislation cited in the chart and the full text of a congressional bill to establish a National Commission on Basic Education to review state plans and set standards. (Author/JM)