The Texas Education Code requires the Commissioner of Education to develop and propose alternative methods of assessment for students who have not passed the exit level test. The goal of this requirement is an alternative mechanism by which a student can demonstrate the knowledge and skills measured by the exit level test and thus earn a high school diploma. The report proposes changes to the assessment and accountability systems by requesting funding for individualized test administration for all seniors and former students who need this procedure, contracting for a computerized learning development system for remedial instruction, and awarding high school diplomas to students who receive associate degrees from 2-year or junior colleges or who pass the Texas Academic Skills Program (TASP) test. The proposed alternative assessment system also includes various features designed to improve efforts in accelerated instruction so that students will be well prepared for passing the exit level test in high school. An appendix contains descriptions of seven activities in the assessment development. (SLD)