I think, the closure problem decomposes: You can first apply AND to pairs of strings until you get nothing new, and then you start applying OR until nothing new is generated.
And for the testing problem the following should work: for each 1-entry of the given string, apply AND to the collection of all strings from your set, that have a 1 at this position. It is necessary and sufficient that the set of 1-entries of the result is always contained in the set of 1-entries of the tested string.
For me it's easier to think of the strings as subsets of $\{1,2,\ldots,m\}$. Then AND is intersection, OR becomes union and the above method yields the collection of all sets that can be written as a union of intersections of the original sets, i.e. in the form
$$\bigcup_{i=1}^t\bigcap_{j=1}^{r_i}A_{ij}\qquad\text{with }A_{ij}\in\mathcal A\text{ for all }(i,j)$$ where $\mathcal A$ is the collection of sets from which we start. Clearly the result is union-closed. To see that it's also intersection-closed, we note that
$$\left(\bigcup_{i=1}^t\bigcap_{j=1}^{r_i}A_{ij}\right)\cap\left(\bigcup_{k=1}^{t'}\bigcap_{l=1}^{s_k}B_{kl}\right)=\bigcup_{i=1}^t\bigcup_{k=1}^{t'}\bigcap_{j=1}^{r_i}\bigcap_{l=1}^{s_k}A_{ij}\cap B_{kl}.$$
And the testing works as follows. Let $X$ be the set to be tested, and assume that every element of $X$ appears in at least one $A\in\mathcal A$ (otherwise $X$ is obviously not representable). We form the set
$$Y=\bigcup_{x\in X}\bigcap_{A\in\mathcal A\,:\,x\in A}A.$$
Then $Y$ is the smallest representable set containing $X$, and $X$ is representable iff $X=Y$.