IT EXAMINES THE COMMON LAW PRINCIPLES OF FAMILY GOVERNMENT, SUBSTITUTE METHODS OF CHILD CARE OUTSIDE OF THE TRADITIONAL FAMILY UNIT, THE EMPHASIS ON LOCAL RESPONSIBILITY FOR THE CARE OF PUBLIC CHARGES, AND THE GENERAL UNWILLINGNESS TO INVEST STATE AND LOCAL TAX FUNDS IN CHILD WELFARE PROGRAMS. ATTENTION IS ALSO GIVEN TO THE INFLUENCE OF FEDERAL LEGISLATION AND FUNDING ON THE DEVELOPMENT OF NORTH CAROLINA'S CHILD PROTECTIVE SERVICES. STATE ENACTMENT OF TWO CHILD ABUSE REPORTING LAWS IN 1965 AND 1971 IS ANALYZED WITH CERTAIN AREAS IDENTIFIED FOR REFORM. IT IS CONCLUDED THAT NORTH CAROLINA'S CHILD ABUSE REPORTING LAW DOES NOT ADEQUATELY DEAL WITH THE COMPLEX PROBLEMS RELATED TO PARENTAL CHILD ABUSE AND NEGLECT. FOR THE FIRST ARTICLE IN THIS SERIES, SEE NCJ-36788.