Sec. 1. 22 MRSA §3761, sub-§3 is enacted to read:

3.__Insurance payments.__The department shall pay emergency aid used for the payment of insurance on an automobile directly to the insurance agency or carrier on behalf of the applicant or recipient of assistance under the Temporary Assistance for Needy Families program under Chapter 1053-B.__If automobile insurance that was paid by the department under this subsection is cancelled and a refund is due, the insurance agency or carrier shall pay the refund to the department.

Sec. 2. 22 MRSA §3763, sub-§§8 and 9, as enacted by PL 1997, c. 530, Pt. A, §16, are amended to read:

8. Alternative aid. To assist applicants who seek short-term assistance to obtain or retain employment, the department shall pay one-time voucher payments of up to 3 times the monthly TANF grant for which the family is eligible. If the family reapplies for TANF within 3 months of receiving alternative aid, the family must repay any alternative aid received in excess of the amount that the family would have received on TANF. The method of repayment must be the same as that used for the repayment of unintentional overpayments in the TANF program.

The department shall pay alternative aid used for the payment of insurance on an automobile directly to the insurance agent or carrier on behalf of the applicant or TANF recipient.__If automobile insurance that was paid by the department under this subsection is cancelled and a refund is due, the insurance agency or carrier shall pay the refund to the department.

9. Emergency assistance. The department shall establish and operate a program of emergency assistance to needy families with children. This program must provide benefits to needy families with children in emergency situations in which the family is deprived of the basic necessities essential to its support, including but not limited to, fire and other natural disasters, terminations of utility service or lack of adequate shelter.

A. In determining what constitutes an emergency with respect to utility terminations, the department shall grant assistance when an otherwise qualified family has received a disconnection notice and has exhausted their ability to negotiate and pay the terms of a reasonable payment arrangement.