######## Section 5:

**The Workforce Investment System and Related Programs**

This section addresses another component of the drug-free workforce
triad---the nation's workforce investment system and related programs.
It provides an overview of these programs and the laws authorizing them
with a focus on how they intersect with substance abuse issues.

**5.1 WIA and the Workforce Investment System**

## 5.1.1 Overview

Workforce investment is a term used to describe activities and services
designed to increase individuals' employment and earning potential, such
as job-search and placement assistance, career counseling, training, and
other job preparation activities. Sometimes, workforce investment
activities also are referred to as workforce development or employment
services.

Workforce investment services are provided through a nationwide system
of public and private agencies working in partnership with local
communities and businesses. The Workforce Investment Act of 1998 (WIA)
mandated the streamlining and integration of the various groups involved
in workforce investment activities in order to improve the skills of
America's workforce, reduce welfare dependency, and enhance the nation's
productivity and competitiveness. Clearly, achieving these goals
requires collaboration among the numerous federal, state, and local
agencies, non-profit organizations, employers, and workers.

The U.S. Department of Labor (DOL) created WIA in cooperation with the
U.S. Departments of Education, Health and Human Services, Housing and
Urban Development and other agencies that oversee training and
employment programs. It was the first reform of the nation's job
training system in more than 15 years and replaced the Job Training
Partnership Act (JTPA). WIA is up for reauthorization in 2003.

WIA has five underlying principles:

-   **Business leadership---**The business community should play an
    active role in preparing people for current and future jobs by
    providing local leadership and critical labor market information.

-   **Local management---**Training and employment programs should be
    designed and managed at the local level, where the needs of
    businesses and individuals are best understood.

-   **One-Stop convenience---**Job seekers and employers should be able
    to conveniently access employment, education, training, and other
    information and services they need at a single location in their
    communities

-   **Individual choice---**Customers should control their own career
    development process and have options in selecting the training
    activities that best fit their needs and the organizations that
    provide such services.

-   **Accountability---**Customers have a right to information about how
    well training providers succeed in preparing people for jobs.

WIA reformed the nation's workforce investment system to be more
comprehensive in order to provide services for all individuals seeking
jobs and employers seeking workers. Key components of the reformed
system are Workforce Investment Boards (WIBs) and One-Stop Career
Centers.

Where to find more information about WIA and the Workforce Investment
System:

-   WIA Information and Tools:
    <http://www.doleta.gov/usworkforce/wia.asp>

-   WIA Reauthorization:
    <http://www.doleta.gov/usworkforce/reauthorization>.

**5.1.2 Key Components of the Workforce Investment System Under WIA**

### Workforce Investment Boards (WIBs)

WIBs operate at both the state and local level. State WIBs help
governors develop strategic plans for workforce goals and activities.
They also explain how WIA requirements will be implemented and outline
outreach strategies to serve special populations. State WIB members
include state and local officials, employers, and representatives from
community-based organizations.

Local WIBs plan and oversee local workforce investment activities. They
designate One-Stop Career Center operators, identify training service
providers, create performance measures with the assistance of state
WIBs, monitor performance, and help develop local labor market
information systems. Local WIB members include locally elected
officials; business and education leaders; representatives from
faith-based, community-based, labor and economic development
organizations; and One-Stop Career Center partners.

In addition, Local Youth Councils develop plans specific to youth,
recommend providers of youth services, and coordinate with local youth
initiatives. Local Youth Council members are appointed by local WIBs and
include WIB members, youth service providers, public housing
authorities, education agencies, and local youth themselves.

WIA mandates that particular sectors be represented on WIBs; however,
WIBs may include other, additional individuals selected and/or approved
by locally elected officials, including substance abuse treatment
providers.

### One-Stop Career Centers 

One-Stop Career Centers serve both employers and job seekers. They are
local facilities where access to a variety of job training, education,
and employment services is available under one roof. One-Stops are
managed by their own staff, but policies and procedures are governed by
their local WIBs. To locate the One-Stop nearest to them, job seekers
and employers can use America's Service Locator
([www.servicelocator.org](http://www.servicelocator.org/)) or call
1-877-US-2-JOBS.

Through Individual Training Accounts (ITAs), individual adult One-Stop
customers are able to choose the training that best suits their needs,
in consultation with a case manager. The One-Stop provides customers
with lists of eligible training providers and information about how well
these providers perform. A key concept behind ITAs is that granting
individuals choice based on performance information helps foster
increased competition and thus improves outcomes among local training
service providers.

### 

### 5.1.3 Who Is Served and What Services Are Available Under WIA

The workforce investment system governed by WIA was designed to serve
multiple audiences, including employers, adults, dislocated workers, and
youth. To be eligible for adult and dislocated worker services,
individuals must be at least 18 years old. To receive dislocated worker
services, individuals must have been terminated or laid off. Displaced
homemakers (individuals who have been providing unpaid services to
family members and have been dependent on the income of another family
member but are no longer supported by that income) are also eligible. If
adult funds are limited in an area, recipients of public assistance and
low-income individuals receive priority.

Eligible youth under WIA are defined as low-income individuals between
the ages of 14 and 21; however, some youth in a local area who are not
considered low-income may be eligible for services if they face certain
barriers to school completion or employment. Such barriers may include
incompletion of high school, lack of basic literacy skills, pregnancy,
being a parent, homelessness, and/or a criminal record, among others.

### Services for Employers

### Through One-Stops, employers can benefit from recruitment and pre-screening of qualified applicants, a place to advertise vacancies, information about job and industry growth trends, labor market information, and compliance assistance on federal legislation affecting employment. 

### 

### Services for Adults

Core services such as job search and placement assistance, skills and
needs assessments, service provider information, unemployment insurance,
and labor market information are available to all adults with no
eligibility requirements. Intensive services, which include more
comprehensive skills assessments, diagnostic testing, and group and
individual counseling, target unemployed individuals who are unable to
find jobs though core services alone. Under some circumstances, employed
individuals may be eligible for intensive services. Both core and
intensive services include 12 months of follow-up after job placement.
Training is provided to eligible job seekers through ITAs.

### Services for Youth

Youth services can lead to either employment or post-secondary education
and link academic and occupational education. Services may be located
within a One-Stop or at a separate location just for youth and must
include tutoring and study skills, dropout prevention, alternative
school programs, mentoring by appropriate adults, paid and unpaid work
experience, occupational skills training, leadership development, and
appropriate support activities, such as drug and alcohol counseling.

**5.1.4 Substance Abuse Issues Under WIA**

**Disability Issues**

Although WIA does not specifically indicate how individuals with
substance abuse problems should be treated within the workforce
investment context, it does stipulate that no individual can be excluded
from participation in or denied the benefits or services because of a
disability. A disability is a physical or mental impairment that
substantially limits a major life activity. In certain circumstances,
alcoholics and drug addicts in treatment or recovery may be qualified
individuals with a disability and protected by Sec. 188 of WIA, as well
as other federal disability non-discrimination laws. More information
about how federal disability non-discrimination laws impact substance
abuse issues is provided in Section 7.

####### **Drug Testing**

Restrictions described in Section 181 and in 20 CFR 667.260 through
667.268 of WIA regulations apply to the use of grant funds, and Section
181(f) in particular applies to states' drug testing and sanctioning
policies. States are permitted to drug test participants in workforce
development programs and to sanction participants who test positive for
drug use. For a first occurrence, a state may exclude a participant from
workforce development programs for a period up to six months, and for a
second or subsequent occurrence, a state may exclude a participant for
up to two years. Participants have the ability to appeal the imposition
of sanctions and are ensured a maximum degree of privacy.

**5.2 Vocational Rehabilitation**[^1]

## 5.2.1 Overview {#overview-1 .unnumbered}

The Basic Vocational Rehabilitation (VR) Services Program is designed to
help people with a particular subset of disabilities---those that
present significant barriers to employment---to prepare for, enter,
engage in, or retain employment. Administered by the Rehabilitation
Services Administration of the U.S. Department of Education, the program
provides state VR agencies with federal grants to provide comprehensive
rehabilitation services beyond those found in "mainstream" workforce
investment programs. To receive these specialized services, a person
with a disability must satisfy certain eligibility criteria, and
individuals with the most

significant disabilities are given priority.

States receive federal funds for VR as formula grants. VR funding to
States and Native American tribes for FY 2002 was \$2,481,383. The FY
2003 funding for VR is \$2,533,492. The FY 2004 budget request is still
in Congress as of June 13, 2003.

VR is authorized by Title I of the Rehabilitation Act of 1973, which
makes state vocational rehabilitation agencies mandatory partners in the
One-Stop system described earlier. VR services include, but are not
limited to:

-   An assessment for determining eligibility and VR needs.

-   Vocational counseling, guidance, and referral services.

-   Physical and mental restoration services.

-   Vocational and other training, including on-the-job training.

-   Transportation related to other VR services.

-   Personal assistance services (including training in managing,
    supervising, and directing personal assistance services) while an
    individual is receiving VR services.

-   Rehabilitation technology services and devices.

-   Supported employment services.

-   Job placement services.

    To be eligible for VR services, a person must:

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-   Have a physical or mental impairment that constitutes or results in
    a substantial impediment to employment for the person.

-   Require VR services to prepare for, secure, retain, or regain
    employment.

-   Be able to benefit from VR services to achieve an employment
    outcome.

If a state lacks the resources to serve everyone who is eligible for VR
services, the Rehabilitation Act requires VR to serve individuals with
the most significant disabilities first. In this situation, some states
use an "order of selection" process to give VR applicants with the most
significant disabilities priority over those with less-significant
disabilities. It is important to note that the order of selection aspect
of the VR program in no way affects a customer's right to protection
from discrimination under federal disability non-discrimination laws,
including the ADA, Section 504 of the Rehabilitation Act, and Section
188 of WIA.

##### Where to find more information about VR:

-   *Vocational Rehabilitation in the Workforce Investment Act
    Environment* (video with audio tape and transcript). U.S. Department
    of Education, Rehabilitation Services Administration, 1999. This
    video explores the statutory requirements of WIA and innovative ways
    that the Vocational Rehabilitation Program can be an effective
    partner in the state workforce investment system. Available from the
    National Clearinghouse of Rehabilitative Training Materials at
    <http://www.nchrtm.okstate.edu/catalog.html> or by calling (800)
    223-5219 or (405) 744-2000 (Catalog #V200.002).

-   Legislation:
    <http://www.ed.gov/offices/OSERS/RSA/Policy/Legislation/rehabact.doc>.

-   Rehabilitation Services Administration:
    <http://www.ed.gov/offices/OSERS/RSA>.

**5.2.2 Vocational Rehabilitation and Substance Abuse Treatment**

VR can pay for substance abuse treatment if a person is eligible by
having a mental or physical disability (which can be an addiction) and
an impediment to employment. Another co-existing disability is not
required.

Treatment also can be paid for as part of assessment to determine
whether or not an individual can benefit from VR services. Much testing
is needed to determine an impediment to employment, e.g., brain damage
from excessive drug usage. An impediment to employment can arise when
substance abuse impacts employability, such as loss of professional
license or being barred from certain occupations due to drug abuse or
offender status. There is no legal prohibition against serving current
illicit drug users.

Of a total of 57,265 substance abuse-related VR cases closed in 2001:

-   20,366 received services and employment.

-   16,067 individuals received services but not employment.

-   11,007 individuals were eligible but did not receive services.

-   8,970 individuals eligibility was not determined.

-   473 cases closed from the waiting list. (Individual did not make the
    order of selection because impediments to employment were deemed not
    severe enough.)

-   382 cases closed for extended evaluation. (This allows individuals
    to receive some services while eligibility is determined. The
    individual is served as long as she or he has a disability, unless
    or until agency can prove the disability is too severe for the
    person to benefit in terms of employment.)

**5.3 Social Security**

In 1997, alcoholism and drug addiction were removed from the definition
of disability under the Social Security Act. Social Security Disability
Insurance (SSDI) and Supplemental Security Income (SSI) disability
benefits are no longer available to people who are disabled due to drug
addiction and/or alcoholism. However, an addicted person who has another
disability (in addition to the drug or alcohol addiction) may still
qualify for benefits if he or she can demonstrate that the other
disability would exist even is she or he were not addicted to drugs or
alcohol.

If a person has behavioral changes or physical changes associated with
the regular use of substances that affect the central nervous system,
the required level of severity for these disorders is met when the
requirements in any of the following conditions are present: organic
mental disorders, depressive syndrome, anxiety disorders, personality
disorders, peripheral neuropathies, liver damage, gastritis,
pancreatitis, and seizures.

The evaluation of disability on the basis of mental disorders requires
documentation of a medically determinable impairment(s), consideration
of the degree of limitation such impairment(s) may impose on the
individual's ability to work, and consideration of whether these
limitations have lasted or are expected to last for a continuous period
of at least 12 months.

## *Where to find more information about SSDI and SSI as they relate to substance abuse disorders:*

-   [http://www.ssa.gov/disability/](http://www.ssa.gov/).

**5.4 Temporary Assistance to Needy Families (TANF)**

## 5.4.1 Overview

In 1996, the Personal Responsibility and Work Opportunity Reconciliation
Act (PRWORA) fostered a new vision for public assistance---welfare as
short-term, emergency aid focused on increasing self-sufficiency through
unsubsidized, full-time employment. It created a new system of block
grants to states called Temporary Assistance for Needy Families (TANF)
and drastically changed the nature and provision of welfare benefits in
America.

TANF is administered by the U.S. Department of Health and Human Services
and replaced the Aid to Families with Dependent Children and Job
Opportunities and Basic Skills Training programs, which were federal
entitlement programs based on income. In a departure from prior welfare
law that defined eligibility and services, PRWORA affords states
considerable flexibility by allowing states to set their own eligibility
rules and design their own programs. In addition, PRWORA provides that
states may use TANF funds in any manner "reasonably calculated to
accomplish the purposes of TANF." The purposes are: assisting needy
families so that children can be cared for in their own homes; reducing
dependency of needy parents by promoting job preparation, work, and
marriage; preventing out-of-wedlock pregnancies, and encouraging the
formation and maintenance of two-parent families.

TANF places a strong emphasis on work by imposing work participation
rates on states and work participation requirements on recipients. TANF
impelled welfare agencies to strengthen their workforce development
activities, either by bolstering their in-house capabilities or forging
relationships with the nationwide workforce development system, in order
to help families transition from welfare to work. The work requirements
and time limits under the TANF system provided little room for work
exemption and created an incentive for welfare agencies to explore the
needs of those recipients overcoming serious and more difficult
challenges---so that they, too, may move into work and be assisted on a
path toward self-sufficiency.  Again, the flexibility of TANF has
encouraged welfare agencies to bring together the relevant stakeholders
(including employers, substance abuse providers, and workforce
specialists) and craft the array of services and supports that will help
its recipients successfully overcome their challenges, obtain and retain
work, and move toward self-sufficiency.

TANF also provides that individuals who fail to participate (without
just cause) in work activities be sanctioned. The penalty for the first
sanction is the reduction of the family's grant by the pro rata share
(or greater at the state's option). In the same way, establishing the
criteria for determining "failure to comply" is also left to each state.

TANF is currently operating under a continuing resolution; its
reauthorization, originally scheduled for 2002, is expected in 2003.
Total funds appropriated for FY 2002 were \$17 billion.

**5.4.2 Addressing Substance Abuse Among TANF Recipients**

Research has indicated that substance abuse and mental health problems
are more prevalent among welfare recipients, than non-recipients.
National estimates of the welfare population with substance abuse issues
range from 5-27% (and state and local estimates range from 6-60%),
compared with 4-12% of the general population.

Under PRWORA, program and funding flexibility allows States to undertake
innovate strategies in building system capacity to address substance
abuse barriers to employment for those both on and off the caseload. For
instance, TANF and TANF-required Maintenance of Effort (MOE) dollars can
be used for the following services:

-   Collaborate and/or fund substance abuse/mental health providers to
    screen and identify these barriers to employment; provide referrals
    and other related services; and develop appropriate staff training.

-   Use federal TANF to provide appropriate counseling services (e.g.,
    mental health services, anger management counseling, non-medical
    substance abuse counseling services) to family members with barriers
    to employment and self-sufficiency.

-   Use federal or state MOE funds to provide non-medical substance
    abuse services, including room and board costs at residential
    treatment programs

-   Use state MOE funds (that have not been commingled with federal TANF
    funds) to pay for medical services (e.g., treatment of substance
    abuse not paid by Medicaid, or to provide medical coverage for
    families that lack medical benefits (e.g., families ineligible for
    transitional Medicaid or adults whose children are served by
    Medicaid or SCHIP).

*Where to find more information about TANF:*

-   PRWORA summary:
    <http://www.acf.dhhs.gov/programs/opa/facts/prwora96.htm>.

-   PRWORA full text:
    <http://thomas.loc.gov/cgi-bin/query/z?c104:H.R.3734.ENR:>.

-   Summary of regulations:
    <http://www.acf.dhhs.gov/programs/ofa/exsumcl.htm>.

-   Full text of regulations:
    <http://www.acf.dhhs.gov/programs/ofa/finalru.htm>; subject index at
    <http://www.acf.dhhs.gov/programs/ofa/frindex.htm>.

**5.5 Welfare-to-Work Grants (WtW)**

The Balanced Budget Act of 1997 authorized DOL to provide \$3 billion in
Welfare-to-Work (WtW) competitive grants to states and communities to
create additional job opportunities for the hardest-to-employ recipients
of TANF. Grantees were given considerable flexibility in designing
strategies geared to the needs of their own local labor markets and
economies. Grants provided job readiness, community service or work
experience, job creation through public- or private-sector employment
wage subsidies, on-the-job training, job placement services, and
post-employment and job retention services to long-term welfare
recipients and non-custodial parents of children on welfare considered
hardest to employ.

The original legislation specified that 70 percent of WtW grant funds
were to be spent on TANF recipients who had at least two of the
following three barriers to employment: lack of a high school diploma or
GED, and low skills in reading or math; substance abuse requiring
treatment in order for the recipient to become employed; and poor work
history. However, the 1999 Welfare-to-Work Amendments responded to the
problem of too few people enrolling in WtW programs by removing the
requirement that long-term TANF recipients meet two of the three
barriers specified above in order to qualify for the WtW program. Under
the 1999 amendments, TANF recipients became automatically eligible for
WtW if they had received assistance for at least 30 months, were within
12 months of reaching their TANF time limit, or had exhausted their
receipt of TANF due to time limits.

WtW allowed grantees to use federal funds for alcohol and drug treatment
as long as services were non-medical (such as sessions with counselors,
technicians, social workers, and psychologists and services not provided
in a hospital or clinic, including 24-hour care programs). States could
use their own or other funds to provide medical treatment. A number of
WtW grants were awarded to specifically focus on addressing the
employment needs of long-term welfare recipients with alcohol and drug
problems.

Most of the Welfare-to-Work grants expired or were spent down in 2001
and 2002; the few remaining are ending in 2003.

Where to find more information about WtW and substance abuse issues:

-   WtW Fact Sheets: <http://wtw.doleta.gov/resources/factshet.asp>.

-   Legislation: <http://wtw.doleta.gov/laws-regs/>.

-   Information on WtW Competitive Grants:
    [http://wtw.doleta.gov/competitive](http://wtw.doleta.gov/competitive/).

**5.6 Federal Bonding Program**

Job seekers who have in the past committed a fraudulent or dishonest
act, or who have demonstrated other past behavior that casts doubt upon
their credibility or honesty---

such as ex-addicts who have been rehabilitated through treatment for
alcohol and drug abuse---often experience a barrier to gaining
employment due to their personal backgrounds. Such persons are routinely
classified as "at-risk" job applicants.

These job seekers, whose past life experience raises an obstacle to
their future ability to secure employment, can benefit from the Federal
Bonding Program. Created by DOL in 1966 this program helps to alleviate
employers' concerns that at-risk job applicants would be untrustworthy
workers by allowing employers to purchase fidelity bonds to indemnify
them for loss of money or property sustained through the dishonest acts
of their employees.

The Federal Bonding Program serves as a tool to secure the job placement
of ex-offenders and other high-risk applicants. The program issues
Fidelity bonds, business insurance policies that protect the employer in
case of any loss of money or property due to employee dishonesty. It is
like a "guarantee" to the employer that the person hired will be an
honest worker.

The bond is given to the employer free of charge and serves as an
incentive to the company to hire a job applicant who is an ex-offender
or has some other risk factor in his or her personal background. The
employer is then able to get the workers' skills without taking any risk
of worker dishonesty on the job. The bond insures the employer for any
type of stealing by theft, forgery, larceny, or embezzlement. It does
not cover liability due to poor workmanship, job injuries, or work
accidents. It is not a bail bond or court bond for the legal system. It
is not a contract bond, performance bond, or license bond sometimes
needed to be self-employed.

The worker must meet the state's legal age for working; there are no age
limits. The job usually is to be for at least 30 hours' work per week.
Workers must be paid wages with federal taxes automatically deducted
from pay; self-employed persons cannot be covered.

In addition to ex-addicts who have been rehabilitated through treatment
for alcohol and drug abuse, the program will cover any person who is a
"risk" due to his or her being in one or more of the following groups:

-   Ex-offender with a record of arrest, conviction, or imprisonment;
    anyone who has ever been on parole or probation, or has any police
    record.

-   Poor credit record or has declared bankruptcy.

-   Persons lacking a work history who are families with low income.

-   Dishonorably discharged from the military.

Issuance of the bond for job placement to occur can be requested by
either the employer or the job applicant. This request is to be made to
the local agency certified by the Federal Bonding Program. For the bond
to be issued, the employer must make the applicant a job offer and set a
date for the individual to start work. The start date will be the
effective date of the bond insurance, which will terminate six months
later. After the six months, continued coverage will be made available
for purchase if the worker has exhibited job honesty under the program's
bond.

The initial Fidelity bond is issued for a six-month period, and a total
of \$5,000 bond coverage is usually issued, with no deductible amount of
liability for the employer. Larger bond amounts can possibly be issued
if the certified agency issuing the bonds has acquired a special bond
package and has determined that larger bond amounts are appropriate.
About 40,000 applicants have obtained jobs due to being bonded, and 99%
have proven to be honest employees.

[^1]: "Fact Sheet: The State Vocational Rehabilitation Services Program"
    and "Representative Linkages Between Temporary Assistance for Needy
    Families (TANF) and the Vocational Rehabilitation (VR) Program."
    U.S. Department of Education, Rehabilitation Services
    Administration, 2000, (202) 260-2179.