Testimony is presented by representatives of State child care agencies, child advocacy groups, and representatives of child care facilities. The transcript of the hearing includes the script of a psychodrama used to portray parental child abuse. Some of the recommendations for preventing and reducing institutional child abuse are the maintenance of a sexual perpetrator file and police fingerprinting of all those who work with children, including school teachers and institutional personnel. Such information would be used in conducting background checks on persons who work with children. Other suggestions include provision of an information packet for parents to assist them in child abuse, a child abuse education program for children, preservice training for child-care staff, a statewide child-care clearinghouse to provide up-to-date referral information for parents, and public information materials for parents to assist them in selecting quality child care. Witness statements are appended.