An Act to Allow Maine Families to Increase Their Savings by Removing Asset Limits for Eligibility for the Temporary Assistance for Needy Families Program
Maine Legislature, Session 131, LD 0945
Committee: Health and Human Services
Sponsors: MEYER, CARNEY, BRENNAN, CLOUTIER, CRAVEN, GATTINE, MADIGAN, RANA, SHAGOURY
Amends: 22 MRSA §3762

Legislative Document
No. 945
H.P. 592
House of Representatives, March 2, 2023
An Act to Allow Maine Families to Increase Their Savings by 
Removing Asset Limits for Eligibility for the Temporary Assistance 
for Needy Families Program
Reference to the Committee on Health and Human Services suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MEYER of Eliot.
Cosponsored by Senator CARNEY of Cumberland and
Representatives: BRENNAN of Portland, CLOUTIER of Lewiston, CRAVEN of Lewiston, 
GATTINE of Westbrook, LaROCHELLE of Augusta, MADIGAN of Waterville, RANA of 
Bangor, SHAGOURY of Hallowell.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  22 MRSA §3762, sub-§3, ¶A, as enacted by PL 1997, c. 530, Pt. A, §16, 
is amended to read:
A.  The department shall adopt rules as necessary to implement and administer the 
program.  The rules must include eligibility criteria, budgeting process, benefit 
calculation and confidentiality.  The department may not impose an asset test or limit 
for eligibility for the program.  The confidentiality rules must ensure that 
confidentiality is maintained for TANF recipients at least to the same extent that 
confidentiality was maintained for families in the Aid to Families with Dependent 
Children program unless otherwise required by federal law or regulation.
Sec. 2.  22 MRSA §3762, sub-§11, as enacted by PL 1997, c. 530, Pt. A, §16, is 
amended to read:
11.  Treatment of lump sum income.  For the purpose of determining eligibility for 
and the amount of assistance under TANF, the department shall treat any nonrecurring 
lump sum income received by a family in accordance with this subsection.
A.  Nonrecurring lump sum income includes, but is not limited to, personal injury 
awards, lottery winnings, inheritances and similar nonrecurring forms of income.  It 
does not include income earmarked by the payor for particular expenses such as awards 
or insurance proceeds earmarked for medical expenses, attorney's fees or the 
replacement of lost property.  Proceeds from the conversion of a nonliquid asset to a 
liquid asset must be treated as an asset and not as nonrecurring lump sum income.
B.  Up to $10,000 of nonrecurring lump sum income must be disregarded as income 
and excluded as an asset if used for the following purposes within 30 days of its receipt:
(1)  Deposit in a separate identifiable account, approved by the department.  
Withdrawals from such an account may only be for the purposes identified in 
subparagraphs (2) to (6) and paragraph C;
(2)  Expenses for education or job training to attend an accredited or approved 
postsecondary education or training institution;
(3)  The purchase or repair of a home that is the family's principal residence;
(4)  The purchase or repair of a vehicle used for transportation to work or to attend 
an education or training program;
(5)  Capital to start a small business for any family member 18 years of age or 
older; or
(6)  Placement in a family development account authorized by state law, to the 
extent that the total balance of such an account remains below $10,000.
C.  The department shall disregard from income and exclude as an asset nonrecurring 
lump sum income used within 30 days of receipt or money withdrawn from an account 
established pursuant to paragraph B, subparagraph (1) or (6), if it is used for the 
purposes stated in paragraph B, subparagraphs (2) to (6) or to meet the following needs:
(1)  Health care costs of a household member that are medically necessary and that 
are not covered by public or private insurance;
(2)  To address an emergency that may cause the loss of shelter, employment or 
other basic necessities; or
(3)  To address other essential family needs approved by the department.
D.  Nonrecurring lump sum income in excess of the asset limit established in the TANF 
program that is used for purposes other than those enumerated in paragraphs B or C 
and nonrecurring lump sum income in excess of $10,000 plus that asset limit must be 
counted as income and cause the household to be disqualified from receiving TANF 
assistance under this chapter.  The household is disqualified for a period of months 
calculated by dividing the income countable under this paragraph by the standard of 
need established by the department for the household.
SUMMARY
This bill directs the Department of Health and Human Services to establish eligibility 
rules for the Temporary Assistance for Needy Families program that do not include an asset 
test or limit and removes references to the asset limit in statute.