This monograph continues an analysis of group day care as a social institution, particularly as it has developed in southern California. Part I discussed ways in which communities obtain day care facilities, concentrating on changes in community opinion and environment which influence the existence of day care centers. Part II focuses on the decision-making process with regard to the background of problems met in setting up community day care. The role of money as a great facilitator is emphasized throughout the report. Licensing, standards, and staffing of day care facilities are examined. However, communities should recognize that idealized standards do not, in themselves, promote quality. Rather, committed leaders who can find a responsive environment for quality day care programs are vitally important. How the leadership network came into being and how it operates to promote its concerns is discussed. A consideration of issues bearing on the future of day care concludes the report. Appendixes include questionnaires used in the preparation of this report, qualifications for a children's center permit, and the permit authorizing service in instruction in children's centers. (NH)