According to this article from StarTribune.com, students have to prove they understand the concepts by doing well on tests, and if they can do so without doing the homework, that's okay.
Some parents are skeptical, but school officials believe "standards-based grading" will teach kids to take responsibility for their learning. From the article:
"Under the new system, Hazel Park has seen fewer students get the best grades, and fewer get the worst. Students who know how to "game the system" by faithfully turning in homework and extra credit, even though they don't understand the material, are having a harder time. Students who don't turn in homework, but know how to do the work, are having an easier time.
As to whether it will make a difference in student achievement, it's too early to tell because students haven't taken the state tests yet."
What do you think? Would you like to see more schools adopt this method of evaluation?