Part of a larger effort initiated by the Children's Defense Fund through project Child Watch, a national survey was made to obtain information about the effects of deregulating day care programs. Each state licensing agency was asked to submit a copy of current day care standards and to respond to questions concerning licensing changes since 1980. Survey questions focused on the number of centers licensed, number of homes regulated and applications pending, licensing changes since 1980 and proposed changes, staff workload changes, and numbers and types of complaints received at the state level regarding child care. Included in this document is a historical overview of day care regulation, followed by a summary of responses from 49 licensing offices representing almost all states and territories. The discussion of findings focuses on problem areas resulting from the erosion of regulatory standards. Professional assessment, as proposed by the National Association for the Education of Young Children, is suggested as an addition to licensing or regulation. The licensing questionnaire is appended. (Author/RH)