The staff development component of the Outreach and Technical Assistance Network (OTAN) began the second year of operation with all 11 resource centers active. Constant emphasis and assistance was given to providing staff development through the centers. English as a Second Language (ESL) Institutes for Experienced Teachers were scheduled on a rotating basis; ESL Institutes for New Teachers were scheduled only in outreach areas. The two main components of the OTAN On-Line Communication System were electronic mail and a bulletin board for exchange of information. The outreach component provided technical support in research, design, and development of a technology-based adult basic skills program in areas of California where minimal or no apportionment services were provided. A two-county area in northern California was selected for the literacy consortium development pilot project. The archiving component was restructured to have two major parts: (1) a permanent hard copy record of State Department of Education-funded projects and other resource materials; and (2) an electronic storage and retrieval system of a wide variety of appropriate and relevant information for adult educators. Information posted online included selected codes and regulations, government documents in hot topic areas, and bibliographies of materials available in Regional Resource Center Libraries. (Exhibits include charts of training sessions, online subscriber profile, forum activities, and resource library usage.) (YLB)