The first report documented the progress made in implementing recommendations made in the first statewide plan. These accomplishments include mandating substance abuse parity for group and individual health insurance, the development of an effective family treatment model, and initiation of a uniform evaluation system to assess all existing State-supported substance abuse prevention programs. The main focus of this plan is to provide recommendations to improve the statewide substance abuse system. The most critical areas for action in the next 3 years are prevention, treatment, and criminal justice. Prevention recommendations include providing culturally competent, comprehensive services that include local stakeholders; designing a student health and safety survey; identifying available services through an inventory of services; improving conditions in high risk neighborhoods with pilot programs; and increasing the visibility and effectiveness of substance abuse programs. Treatment recommendations include identifying preferred practices, increasing system capacity, and working on the infrastructure of interagency programs. Criminal justice recommendations include determining the effectiveness of the drug court model, amending mandatory minimum sentencing laws for non-violent drug offenses, increasing outpatient substance abuse treatment resources for youth, improving community-based supervision of high-risk offenders, and improving substance abuse treatment outcomes for diverse groups in the adult and juvenile justice systems. 3 appendices