The second step of implementation of the legalization program of the Immigration Reform and Control Act of 1986 (IRCA) began on November 7, 1988. This second step is the process by which undocumented immigrants, initially granted temporary residence, may adjust to their status change to permanent resident. Certain aspects of the adjustment are causing difficulties for persons who have applied for permanent residence. The white paper addresses concerns of advocacy groups regarding the implementation of legalization's second step, including: (1) diminished outreach efforts on the part of the Immigration and Naturalization Service (INS); (2) difficulties regarding State Legalization Impact Assistance Grants; (3) the lack of standardization of the INS testing process; (4) confusion regarding financial assistance; (5) the effect of appeals on application for permanent residence; and (6) the use of fee receipts for work authorization. The white paper, presented by advocacy groups, discusses these problems point by point and offers specific recommendations for resolution. (Author/MSE) (Adjunct ERIC Clearinghouse on Literacy Education)