The state board shall determine and adopt, based upon the recommendations of the Superintendent, the following:
(a) The means by which pupils may demonstrate mastery of the curriculum. For subject matter areas, the means may include, but shall not be limited to, any subject matter examinations deemed appropriately rigorous by the state board. For this purpose, the state board may designate examinations administered by or under the auspices of the department, or examinations produced by private providers or local educational agencies, that are supervised and administered under conditions that are deemed adequate by the state board.
(b) Pupil performance standards or achievement levels that demonstrate mastery of the curriculum.