Sec. 1. 22 MRSA §3762, sub-§3, ¶B, as amended by PL 1999, c. 401, Pt. S, §3, is further amended by amending subparagraph (7) to read:

(7) In determining benefit levels for TANF recipients who have earnings from employment, the department shall disregard from monthly earnings the following:

(i) One hundred and eight dollars;

(ii) Fifty percent of the remaining earnings that are less than the federal poverty level; and

(iii) All actual child care costs paid by TANF recipients 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.

The monthly benefit is the lower of the maximum payment level or the difference between the countable earnings and the standard of need.

Sec. 2. 22 MRSA §3782-A, sub-§5, as enacted by PL 1997, c. 530, Pt. A, §19, is amended to read:

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, including participating in paid employment.

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.

Child care assistance provided to an ASPIRE-TANF participant engaged in paid work must be paid directly to the participant's child care provider by the department in a prompt manner that permits the ASPIRE-TANF participant to access child care without paying for it out-of-pocket in advance.__If the ASPIRE-TANF participant becomes ineligible for Temporary Assistance for Needy Families, or TANF, under chapter 1053-B or voluntarily withdraws from TANF, the child care payment from the program must continue