An Act To Increase Reimbursement for Child Care Services
Maine Legislature, Session 128, LD 0166
Committee: Health and Human Services
Sponsors: LIBBY, HANDY, CHIPMAN, KATZ, CHACE, MADIGAN
Amends: 22 MRSA §3737, 22 MRSA §3762, 22 MRSA §3782-A

Legislative Document
No. 166
S.P. 58
In Senate, January 19, 2017
An Act To Increase Reimbursement for Child Care Services
Reference to the Committee on Health and Human Services suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator LIBBY of Androscoggin.
Cosponsored by Representative HANDY of Lewiston and
Senators: CHIPMAN of Cumberland, KATZ of Kennebec, Representatives: CHACE of 
Durham, MADIGAN of Waterville.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  22 MRSA §3737, sub-§4 is enacted to read: 
4.  Child care rates.  The department shall establish payment rates for child care 
services that are at least equal to the 75th percentile of local market rates for the various 
categories of child care services.  The payment rates for child care services for children 
with special needs must be higher than the 75th percentile of local market rates. 
Sec. 2.  22 MRSA §3762, sub-§3, ¶B, as amended by PL 2015, c. 267, Pt. RRRR, 
§2, is further amended to read: 
B.  The department may use funds, insofar as resources permit, provided under and in 
accordance with the United States Social Security Act or state funds appropriated for 
this purpose or a combination of state and federal funds to provide assistance to 
families under this chapter.  In addition to assistance for families described in this 
subsection, funds must be expended for the following purposes: 
(1)  To continue the pass-through of the first $50 per month of current child 
support collections and the exclusion of the $50 pass-through from the budget 
tests and benefit calculations; 
(2)  To provide financial assistance to noncitizens legally admitted to the United 
States who are receiving assistance under this subsection as of July 1, 2011.  
Recipients of assistance under this subparagraph are limited to the categories of 
noncitizens who would be eligible for the TANF programs but for their status as 
aliens under PRWORA.  Eligibility for the TANF program for these categories of 
noncitizens must be determined using the criteria applicable to other recipients of 
assistance from the TANF program. Any household receiving assistance as of  
July 1, 2011 may continue to receive assistance, as long as that household 
remains eligible, without regard to interruptions in coverage or gaps in eligibility 
for service. A noncitizen legally admitted to the United States who is neither 
receiving assistance on July 1, 2011 nor has an application pending for assistance 
on July 1, 2011 that is later approved is not eligible for financial assistance 
through a state-funded program unless that noncitizen is: 
(a)  Elderly or disabled, as described under the laws governing supplemental 
security income in 42 United States Code, Sections 1381 to 1383f (2010); 
(b)  A victim of domestic violence;  
(c)  Experiencing other hardship, such as time necessary to obtain proper 
work documentation, as defined by the department by rule. Rules adopted by 
the department under this division are routine technical rules as defined by 
Title 5, chapter 375, subchapter 2-A; or 
(d)  Unemployed but has obtained proper work documentation, as defined by 
the department by rule.  Rules adopted by the department under this division 
are routine technical rules as defined by Title 5, chapter 375, subchapter 2-A; 
(3) To provide benefits to certain 2-parent families whose deprivation is based on 
physical or mental incapacity; 
(4)  To provide an assistance program for needy children, 19 to 21 years of age, 
who are in full-time attendance in secondary school.  The program is operated for 
those individuals who qualify for TANF under the United States Social Security 
Act, except that they fail to meet the age requirement, and is also operated for the 
parent or caretaker relative of those individuals.  Except for the age requirement, 
all provisions of TANF, including the standard of need and the amount of 
assistance, apply to the program established pursuant to this subparagraph; 
(5)  To provide assistance for a pregnant woman who is otherwise eligible for 
assistance under this chapter, except that she has no dependents under 19 years of 
age.  An individual is eligible for the monthly benefit for one eligible person if 
the medically substantiated expected date of the birth of her child is not more 
than 90 days following the date the benefit is received; 
(6)  To provide a special housing allowance for TANF families whose shelter 
expenses for rent, mortgage or similar payments, homeowners insurance and 
property taxes equal or exceed 75% of their monthly income.  The special 
housing allowance is limited to $200 per month for each family.  For purposes of 
this subparagraph, "monthly income" means the total of the TANF monthly 
benefit and all income countable under the TANF program, plus child support 
received by the family, excluding the $50 pass-through payment; 
(7)  In determining benefit levels for TANF recipients who have earnings from 
employment, the department shall disregard from monthly earnings the 
following: 
(a)  One hundred and eight dollars; 
(b)  Fifty percent of the remaining earnings that are less than the federal 
poverty level; and 
(c)  All actual child care costs necessary for work, except that the department 
may limit the child care disregard to $175 per month per child or $200 per 
month per child under 2 years of age or with special needs; 
(7-A)  In determining eligibility and benefit levels, the department may apply a 
gross income test only to applicants and not to recipients; 
(8)  In cases when the TANF recipient has no child care cost, the monthly TANF 
benefit is the maximum payment level or the difference between the countable 
earnings and the standard of need established by rule adopted by the department, 
whichever is lower; 
(9)  In cases when the TANF recipient has child care costs, the department shall 
determine a total benefit package, including TANF cash assistance, determined in 
accordance with subparagraph (7) and additional child care assistance, as 
provided by rule, necessary to cover the TANF recipient's actual child care costs 
up to the maximum amount specified in section 3782-A, subsection 5, paragraph 
B.  The benefit amount must be paid as provided in this subparagraph. 
(a)  Before the first month in which child care assistance is available to an 
ASPIRE-TANF recipient under this paragraph and periodically thereafter, the 
department shall notify the recipient of the total benefit package and the 
following options of the recipient: to receive the total benefit package 
directly; or to have the department pay the recipient's child care assistance 
directly to the designated child care provider for the recipient and pay the 
balance of the total benefit package to the recipient. 
(b)  If an ASPIRE-TANF recipient notifies the department that the recipient 
chooses to receive the child care assistance directly, the department shall pay 
the total benefit package to the recipient. 
(c)  If an ASPIRE-TANF recipient does not respond or notifies the 
department of the choice to have the child care assistance paid directly to the 
child care provider from the total benefit package, the department shall pay 
the child care assistance directly to the designated child care provider for the 
recipient.  The department shall pay the balance of the total benefit package 
to the recipient; 
(10)  Child care assistance under this paragraph must be paid by the department 
in a prompt manner that permits an ASPIRE-TANF recipient to access child care 
necessary for work; and 
(11)  The department shall adopt rules pursuant to Title 5, chapter 375 to 
implement this subsection.  Rules adopted pursuant to this subparagraph are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 3.  22 MRSA §3762, sub-§8, ¶E, as enacted by PL 2009, c. 291, §6, is 
repealed and the following enacted in its place: 
E.  The department shall establish payment rates for child care services that are at 
least equal to the 75th percentile of local market rates for the various categories of 
child care services.  The payment rates for child care services for children with 
special needs must be higher than the 75th percentile of local market rates. 
Sec. 4.  22 MRSA §3782-A, sub-§5, as enacted by PL 1997, c. 530, Pt. A, §19, is 
repealed and the following enacted in its place: 
5.  Child care during participation in employment, education and training.  The 
department shall provide child care in accordance with federal law and this Title when the 
child care is necessary to permit a TANF-eligible family member to participate in the 
ASPIRE-TANF program. 
A.  The department shall establish payment rates for child care services that are at 
least equal to the 75th percentile of local market rates for the various categories of 
child care services.  The payment rates for child care services for children with 
special needs must be higher than the 75th percentile of local market rates. 
B.  The department shall provide an ASPIRE-TANF program participant's actual cost 
for child care up to the maximum rate authorized by federal law.  In determining the 
maximum rate, the State shall use a method that results in an amount that equals, or 
most closely approaches, the actual market rate in different regions of the State for 
various types of child care services received by families in the State participating in 
the ASPIRE-TANF program. 
Sec. 5.  PL 2011, c. 380, Pt. UU is repealed. 
SUMMARY 
This bill repeals unallocated language in Public Law 2011, chapter 380, Part UU that 
set the child care subsidy payment rates of the Department of Health and Human Services 
at the 50th percentile of local market rates.  This bill increases the payment rates to the 
75th percentile of local market rates for payments the department makes on behalf of 
recipients of benefits under the child care subsidy program, recipients of benefits under 
TANF and recipients of benefits under ASPIRE-TANF.