C.__If an applicant is in a group home, shelter or other institution that has a primary function of providing shelter or providing shelter and services to homeless persons, the municipality responsible for administering the applicant's assistance is the municipality where the institution is located.__In accordance with section 4311, the department shall reimburse that municipality for 100% of the general assistance issued to the institution on behalf of the eligible recipient for the length of the recipient's stay in the institution.__The department's responsibility to reimburse the municipality at the rate of 100% is limited to the first 45 consecutive days of the recipient's stay in the institution.__For the purposes of this paragraph, a hotel, motel or similar place of temporary lodging is considered an institution when a municipality grants financial assistance for an eligible applicant to move to or stay in temporary lodging when the applicant is making a good faith effort to secure permanent housing and the administrator can attest that there is no affordable permanent housing immediately available to the applicant.

Sec. 4. 22 MRSA §4311, sub-§1, as amended by PL 1993, c. 410, Pt. AAA, §7, is further amended to read:

1. Departmental reimbursement. When a municipality incurs net general assistance costs in any fiscal year in excess of .0003 of that municipality's most recent state valuation relative to the state fiscal year for which reimbursement is being issued, as determined by the State Tax Assessor in the statement filed as provided in Title 36, section 381, less any net general assistance costs with respect to which the municipality is entitled to 100% reimbursement, the Department of Human Services shall reimburse the municipality for 90% of the amount in excess of these expenditures when the department finds that the municipality has been in compliance with all requirements of this chapter. If a municipality elects to determine need without consideration of funds distributed from any municipally- controlled trust fund that must otherwise be considered for purposes of this chapter, the department shall reimburse the municipality for 66 2/3% of the amount in excess of such expenditures when the department finds that the municipality has otherwise been in compliance with all requirements of this chapter.

Sec. 5. 22 MRSA §4311, sub-§1-A, as amended by PL 1995, c. 696, Pt. A, §39, is further amended to read:

1-A. Municipalities reimbursed. When a municipality pays for expenses to an institution providing shelter or shelter and services to homeless persons pursuant to section 4307, subsection