The second year of the Community Family Day Care Project, begun in August 1970, to test the belief that group day care is the best way to provide care for children of working parents is discussed. The tasks for the second year were to demonstrate the feasibility of improving quality, stability, continuity, and flexibility in an existing network of Family Day Care (FDC) homes in the Pasadena area. The five parts of the report and their chapters are: Part I--1. The First Year, a Brief Review; 2. The Second Year's Objectives and People; 3. Filling the Gaps, Day Care for Infants and School Children; 4. Beyond the Call of Duty, the Special Services Given by Family Day Care Mothers (FDCMs); 5. What Makes FDC Homes Good Places to Learn; Part II--6. The Licensing Game, How to Win Without Actually Cheating; 7. Cost Issues, Catch 22; 8. Special Needs Children, a Problem for Everyone; Part III--9. Intervention Strategy, Several Approaches; 10. An Organization Is Born; 11. Community Involvement, a Two-Way Street; 12. Field Demonstration Assistants, the Students' Role; 13. Field Service Representative, the "Fix-It Man"; 14. Center Meetings, We Change Our Role; 15. Field Faculty, FDCMs Help Each Other; 16. Certificate Course, Success with some Reservations; 17. The Referral Service, a Problem in Matchmaking; 18. Other Support Services; Part IV--19. The Project as Change Agent, Measuring the Effect of Group Discussion; and Part V--Conclusions and Recommendations. Eight appendixes and a bibliography conclude the report. (DB)