This report to the Nevada State Legislature examines policies related to graduation for students with disabilities and the state testing process. An introductory section notes relevant federal and Nevada legislation and regulations. The next section reviews current statutory, regulatory, and administrative requirements regarding Nevada state testing programs and graduation with either of two diploma options: standard diploma or adjusted diploma, a certificate of attendance, or by high school proficiency examination. The following section describes the process and chronology of the working group and identification of discussion topics. Recommendations are then offered regarding: (1) criteria for students with disabilities to graduate with a standard diploma; (2) accommodations and modifications for students with disabilities taking the high school proficiency examination; (3) other topics for students with disabilities; and (4) considerations of all students. Within each category recommendations are organized into those directed to the Nevada State Legislature, to the Nevada State Board of Education, and to the Nevada Department of Education. A summary highlights seven major findings of the working group. The law authorizing the working group, a summary of current graduation requirements, a list of currently allowed accommodations and modifications, and a matrix of detailed recommendations are appended. (DB)