Utah Basic Skills Testing (UBSCT)

I'm confused, as usual when it comes to anything to do with the educational system in this state. This time, my confusion comes about as the result of a letter that came from the high school here concerning Utah Basic Skills Testing (UBST). This letter states, "The UBSCT is a state-mandated test. Students must pass all three sections of the test or attempt all sections of the test 3 times to receive a basic diploma and walk at graduation." It seems to me that the requirement should be to actually pass the test, not just take it three times. In fact, according to the UBST website:

In 1999, the Utah State Legislature drafted and passed H.B. 33. Among other things, H.B. 33 called for the construction and implementation of a basic skills competency test to be given in the tenth grade. In 2000, the need and desire for a basic skills competency test was reaffirmed by the legislature in the passage of H.B. 177.

In the summer of 2000, the Utah State Office of Education entered into a contract with a national test publisher for the development of the basic skills competency test. Students who are tenth graders in 2004 (the graduating class of 2006) will need to pass this test in order to receive a "basic high school diploma."

Sounds like a good idea, but these days all that is required is to try to pass the test. So, I'm puzzled as to why we're even spending the money to administer this test. Someone, help me out here.