The California Child Care Initiative is a collaborative program with the objective of increasing the supply of licensed quality child care in the state to better meet demand. This handbook provides family child care providers with guidance in implementing and maintaining a family daycare operation. The handbook provides articles, sample forms and worksheets, and handouts in the following areas: (1) "Getting Started," including self evaluation, state licensing, and leasing, zoning, and handicapped accessibility restrictions; (2) "The Business of Family Day Care," including setting fees, business planning and bookkeeping, liability insurance, working with an assistant or substitute, and professionalism; (3) "Working with Parents," including interview and trial period, what a parent expects from a provider, and contracts; (4) "Health and Safety," including fire and earthquake safety, hygiene, common childhood and contagious illness, first aid, HIV, and disabilities and special needs; (5) "Food and Nutrition," including planning menus, feeding infants, choking, food allergies, nutrition education, and snacks; (6) "Working with Children," including developmental characteristics, sexuality, school-age children, play, arranging space, toys and equipment, movement, science field trips, toilet training, and television; and (7) "Further Resources," including family day care associations. (HTH)