This third annual report of The Temporary State Commission on Child Welfare deals with the origin, development and rationale of the provisions of the Child Welfare Reform Act of 1979 (chapters 610 and 611). The Child Welfare Reform Act addresses itself primarily to three discrete program areas which operationally are intended to alter radically the substance and direction of child welfare policies and administration in New York State. The three areas referred to above include the following: a series of fiscal incentives designed to encourage the provision of preventive and adoption services; a series of fiscal disincentives and accountability measures designed to discourgae the failure to provide necessay preventive, adoption and foster care services; and a variety of requirements intended to ensure that the provisions of the Act are implemented in an appropriate way. In addition, the report deals with the Commission's current investigations in the fields of child abuse and alcoholism and also with the activities of the Subcommission on Juvenile Justice. The text of the Act and other related legislation are provided in the appendix. (Author/MP)