This report by New York's Temporary State Commission on Child Welfare discusses a study conducted to determine why the laws pertaining to freeing and placing children for adoption, and the administrative machinery implementing these laws, have failed, and to recommend remedial action. The report is divided into three major sections. Part I, The Legal Basis for Termination of Parental Rights, discusses the current statutory framework for termination of parental rights, presents a historical perspective on the development of the body of state law, sets forth major problems and issues, and states the Commission's recommendations and rationale for legislative change. Part II, The Courts, discusses the jurisdictional and administrative problems encountered within the judicial system, in administration of termination and foster care review statutes, as perceived by those consulted during the project; it also presents Commission recommendations to the State Department of Social Services and the Office of Court Administration. Part III, The Role of the Agency, details major concerns of social service personnel, attorneys, and judicial personnel and presents relevant Commission recommendations. The five appendices include a draft of proposed legislation, copies of forms and other materials developed for the study, and statistical data on agency activities in freeing and finding adoptive homes for children. (CM)