Several years on from the events of the previous film, this story revolves around a lad named Ricky (Eric Freeman), the younger brother of Billy, the killer Santa in part 1. You may remember that there was a baby in the car during the incident when Billy's family got car jacked when he was younger, well it seems that was his younger brother, who is currently in a psychiatric hospital.
Being interviewed by a psychiatrist, he recounts the incidents that lead to him being detained at the facility and the film subsequently descends into a rehash of the events from the previous movie, which seem to go on forever. Then we're treated to a few flashback scenes of how his life went off the rails, including the rampage that saw him get locked up, which includes the famous line "Garbage Day" as he shoots some poor guy putting his bins out for collection (I'm sure you've all seen the clips on YouTube).
Anyway, having spent over half the film showing footage from the last movie and various other flashbacks, Ricky then manages to break out of the hospital and goes looking for the Nun who ran the orphanage that he and his brother grew up in, whilst the police try and stop him before he gets there.
Whilst the first movie was, at least, fun and entertaining. This one proves to be considerably less so, which is not helped by the fact that so much of the films running time is comprised of footage from the previous outing. Apparently, this was originally intended as an alternate version of the original, in which they were going to mix in some new footage. But they decided to expand on this and turn it into a sequel, which explains why so much of this is comprised of flashback footage from the first.
What new footage there is, is very slow, dull and boring and the payoff at the end, where Ricky goes after the abusive nun, simply isn't worth trailing through all the recycled footage for. To be honest, I would simply stick with the first film and give this one a miss.