  The kinematical foundations of Schwinger's algebra of selective measurements were discussed in a previous paper (arXiv:1905.12274) and, as a consequence of this, a new picture of quantum mechanics based on groupoids was proposed. In this paper, the dynamical aspects of the theory are analysed. For that, the algebra generated by the observables, as well as the notion of state, are dicussed, and the structure of the transition functions, that plays an instrumental role in Schwinger's picture, is elucidated. A Hamiltonian picture of dynamical evolution emerges naturally, and the formalism offers a simple way to discuss the quantum-to-classical transition. Some basic examples, the qubit and the harmonic oscillator, are examined, and the relation with the standard Dirac-Schr\"odinger and Born-Jordan-Heisenberg pictures is discussed. 
Schwinger's Picture of Quantum Mechanics II: Algebras and Observables