This report makes recommendations to the 1987 Minnesota Legislature on some actions that can be taken to improve Minnesota's child care system and make it work more effectively. The first section of the report documents the growing need for child care, emphasizing the number of children in Minnesota, the number of women in the labor force, changes in family structure and economic conditions, and the need for flexible child care arrangements. The second section focuses on the task force's findings and recommendations regarding: (1) availability of insurance for day care providers; (2) administration of the child care food program; (3) indicators of quality child care; (4) ratios and age grouping of children; (5) fire safety standards; and (6) regulations of child care services. Results from a telephone survey of 115 Minnesota child care providers are given in the third section, which also contains a copy of the survey questionnaire. The final section describes the Minnesota Council on Children, Youth, and Families, and lists the Child Care Task Force's members. Attached are eight appendixes on the topics of: (1) day care liability insurance survey results; (2) the child care food program; (3) fire safety in day care; (4) competency standards: Minnesota Family Day Care Training and Assessment Project; (5) licensing and alternative forms of regulation; (6) research on indicators of quality in child care; and (7) community meetings. A bibliography with 25 references concludes the report. (SKC)