‘‘(A) the State is required to pay the em-
ployer an amount specified in the agreement as
the subsidized portion of the wages of the par-
ticipant; and
‘‘(B) the employer is required to pay the
participant wages of not less than an amount
specified in the agreement.
‘‘(3) USE OF UNRESERVED AMOUNTS.—A State
may use for the purpose of this part any amount re-
ceived as a result of requests submitted under para-
graph (1)(A) that is not used in accordance with
paragraph (1)(C).
‘‘SEC. 496. DISPUTE RESOLUTION PROCEDURES.
‘‘Each State shall establish a conciliation procedure
for the resolution of disputes involving an individual’s par-
ticipation in the program and (if the dispute involved is
not resolved through conciliation) shall provide an oppor-
tunity for a hearing with respect to the dispute, which
hearing may be provided through a hearing process estab-
lished for purposes of resolving disputes with respect to
the program or through the provision of a hearing pursu-
ant to section 402(a)(4). The State may not suspend, re-
duce, discontinue, or terminate aid to families with de-
pendent children as a result of a dispute involving an indi-
vidual’s participation in the program until the individual
has an opportunity for a hearing that meets the standards
set forth by the United States Supreme Court in Goldberg
v. Kelly, 397 U.S. 254 (1970).
‘‘SEC. 497. PERFORMANCE STANDARDS.
‘‘(a) Not later than 3 years after the effective date
of title I of the Self-Sufficiency Act of 1995, the Secretary
shall—
‘‘(1) in consultation with the Secretary of
Labor, representatives of organizations representing
Governors, State and local program administrators,
educators, State job training coordinating councils,
community-based 
organizations, 
recipients, 
and
other interested persons, develop performance stand-
ards with respect to the programs established pursu-
ant to this part; and
‘‘(2) submit to the appropriate committees of
jurisdiction of the Congress the recommendations of
the Secretary for performance standards developed
under paragraph (1), which recommendations shall
be made with respect to specific measurements of
outcomes and be based on the degree of success
which may reasonably be expected of particular
States in helping individuals to increase earnings,
achieve self-sufficiency, and reduce welfare depend-
ency, and shall not be measured solely by levels of
activity or participation.
Performance standards developed under this subsection
shall be reviewed periodically by the Secretary and modi-
fied to the extent necessary.
‘‘(b) The Secretary may collect information from the
States to assist in the development of performance stand-
ards under subsection (a), and shall include in the regula-
tions issued pursuant to section 102 of the Self-Suffi-
ciency Act of 1995 provisions establishing uniform report-
ing requirements under which States must furnish periodi-
cally information and data, including information and
data (for each program activity) on the average monthly
number of families assisted, the types of such families, the
amounts spent per family, the length of their participa-
tion, and such other matters as the Secretary may deter-
mine.
‘‘(c) The Secretary shall develop and transmit to the
Congress, for appropriate legislative action, a proposal for
measuring State progress, providing technical assistance
to enable States to meet performance standards, and
modifying the Federal matching rate to reflect the relative
effectiveness of the various States in carrying out the pro-
gram.
‘‘SEC. 498. COORDINATION REQUIREMENTS.
‘‘(a)(1) The Governor of each State shall assure that
program activities under this part are coordinated in that
State with programs operated under the Job Training
Partnership Act and with any other relevant employment,
training, and education programs available in that State.
Appropriate components of the State’s plan developed
under section 492(a)(1) which relate to job training and
work preparation shall be consistent with the coordination
criteria specified in the Governor’s coordination and spe-
cial services plan required under section 121 of the Job
Training Partnership Act.
‘‘(2) The State plan so developed shall be submitted
to the State job training coordinating council not less than
60 days before its submission to the Secretary, for the
purpose of review and comment by the council. Concurrent
with submission of the plan to the State job training co-
ordinating council, the proposed State plan shall be pub-
lished and made reasonably available to the general public
through local news facilities and public announcements, in
order to provide the opportunity for review and comment.
‘‘(3) The comments and recommendations of the
State job training coordinating council under paragraph
(2) shall be transmitted to the Governor of the State.
‘‘(b) The Secretary of Health and Human Services
shall consult with the Secretaries of Education and of
Labor on a continuing basis for the purpose of assuring
the maximum coordination of education and training serv-
ices in the development and implementation of the pro-
gram under this part.
‘‘(c) The State agency responsible for administering
or supervising the administration of the State plan ap-
proved under part A shall consult with the State education
agency and the agency responsible for administering job
training programs in the State in order to promote coordi-
nation of the planning and delivery of services under the
program with programs operated under the Job Training
Partnership Act and with education programs available in
the State (including any program under the Adult Edu-
cation Act or Carl D. Perkins Vocational Education
Act).’’.
(c) FUNDING.—Section 403 of such Act (42 U.S.C.
603) is amended by adding at the end the following:
‘‘(o)(1) Each State with a plan approved under part
G shall be entitled to payments under paragraph (6) for
any fiscal year in an amount equal to the sum of the appli-
cable percentages (specified in paragraph (6)) of its ex-
penditures to carry out the program under part G during
the fiscal year (subject to limitations prescribed by or pur-
suant to such part or this section on expenditures that
may be included for purposes of determining payment