Sec. 1. 22 MRSA §3769-B, as enacted by PL 1997, c. 643, Pt. VV, §1, is amended to read:

§3769-B. Assistance in meeting basic needs

Beginning July 1, 1998, the department shall increase the maximum amount of TANF assistance by an amount equal to 5% of the maximum payments that were in effect on January 1, 1998 and shall increase the standard of need to maintain the same differential between the maximum payment and the standard of need that was in effect on January 1, 1998.

1. Limitation. The assistance increase required by this section does not apply to assistance units with earned income disregarded pursuant to department rule or section 3762, subsection 3, paragraph B, subparagraph (7).

1-A.__Benchmark; evaluation.__The purpose of TANF is to permit low-income families with children sufficient income to meet their most basic needs.__The average TANF benefit in other New England states is the initial benchmark that must be met to satisfy this purpose.__When this benchmark is reached, the department shall conduct a study, including opportunity for public comment, to determine whether benefits are sufficient to meet families' basic needs.__The department shall report the results of this study to the joint standing committee of the Legislature having jurisdiction over health and human services matters.

1-B.__Assistance required to reach benchmark.__Beginning July 1, 2000, and each year on July 1st after that date, the department shall increase the maximum amount of TANF assistance by an amount equal to 5% of the maximum payments that were in effect on December 31st of the previous year and shall increase the standard of need to maintain the same difference between the maximum payment and the standard of need that was in effect on January 1, 1999.__Annual increases pursuant to this subsection may not occur in any year in which the maximum amount of TANF assistance for a family of 3 is at least equal to the average of the other New England states' maximum amount of TANF assistance for a family of 3.__If another state has more than one maximum amount for a family of 3, the department shall use the maximum amount applied to the largest number of families in that state.

2. Determination of eligibility. In determining eligibility for TANF benefits for applicants after July 1, 1998, the department shall use the gross income pretest in effect on January 1, 1998.