Workforce Innovation and Opportunity Act (WIOA) Significant Changes to the Public VR Program Presentation to MOHR, Region 10 March 3, 2015

WIOA Signed into law by President Obama on July 22, 2014 Passed by Congress with wide bipartisan majority – Senate: 93-5; House: Makes significant changes to the Rehabilitation Act of 1973, as amended 2

Key Implementation Dates In general, the Act takes effect on July 1, 2015, unless otherwise noted. Title IV amendments to the Rehabilitation Act take effect immediately (July 22, 2014) Notices of Proposed Rulemaking must be published by January 18, 2015 – Delayed until “Early Spring, 2015” Final rules must be published by January 22, 2016 (no more than 18 months after enactment) 3

Key Changes to Title IV Programs Transfers NIDRR, IL, and Assistive Technology Act programs to Health and Human Services Increases services to youth with disabilities VR becomes “gatekeeper” for access to sheltered workshops Greater alignment with one-stop programs is expected 4

Getting started on implementation… Immediate implementation priorities for VRS: – Pre-employment transition services – Changes to supported employment – Memorandums of understanding with Education, Medicaid, and AT agencies – Understanding the potential impact of Section 458: Limitations on Use of Subminimum Wage – Development of Unified State Plan and common performance measures for all one-stop programs 5

Section 422 (aka 113): Pre-Employment Transition Services VR, in collaboration with local education agency, shall provide or arrange for pre-employment transition services for all students with disabilities who are eligible or potentially eligible for services Students with disabilities are defined as not older than age 21 and eligible for services under IDEA --Sec. 404(37)(A) VR must reserve not less than 15 percent of its federal award for the provision of pre-employment transition services 6

Section 422: Required Activities Job exploration counseling Work-based learning experiences Counseling on opportunities for enrollment in comprehensive transition services or post- secondary education Workplace readiness training to develop social skills and independent living Instruction in self-advocacy 7

Section 422: Authorized Activities Develop & implement strategies for persons with I/DD and with significant disabilities to live independently, participate in postsecondary education, and obtain/retain competitive integrated employment Provide instruction to VR counselors, school transition personnel, and others supporting students with disabilities Coordinating activities with IDEA transition services Developing model transition demonstration projects Disseminating information on innovative, effective and efficient transition services Outreach to improve the transition to postsecondary activities of individuals who are members of traditionally underserved populations 8

Subtitle G, Section 461 (Sec ): Employment Opportunities for Individuals with Disabilities Amends supported employment provisions of the Rehabilitation Act (Title VI) Requires 50% of allotment under this title be reserved for the provision of supported employment services, including extended services, to youth with the most significant disabilities (Section 603) – MN General’s current annual appropriation: $320,067 – 10% non-federal match now required for these funds Youth with disabilities defined as ages

Availability of Services (Sec. 604) 604 (a): Supported Employment Services – Funds provided under this title may be used to provide supported employment services to individuals eligible under this title For up to 24 months 604 (b): Extended Services – Funds allotted under this title or Title 1 may be used to provide extended services to youth for a time period not to exceed four years 10

Subtitle G, Sec. 609: Advisory Committee on Increasing Competitive Integrated Employment To study, advise and make recommendations to increase integrated employment for individuals with disabilities, including recommendations on the use and oversight of special wage certificate program of Section 14(c) of the Fair Labor Standards Act Members appointed by Department of Labor First meeting held January 22-23, Committee sunsets in 2 years after submission of report to DOL, Senate and House 11

Sec. 609: Committee Members Self advocates for individuals with I/DD Employment services providers Representatives of national disability advocacy organizations for adults with I/DD Representatives from academia & research on employment and wage policy issues for persons with I/DD Representatives from the employer community Representatives from organizations with expertise in increasing competitive employment for individuals with disabilities 12

Sec. 609: Committee Members, cont. Seven federal officials – Asst. Secretary of ODEP, DOL – Asst. Secretary of ETA, DOL – Administrator of Wage & Hour Division, DOL – Administration on I/DD Commissioner, or designee – CMS director, or designee – Social Security Commissioner, or designee – RSA Commissioner, or designee 13

Section 458 (aka 511): Limitations on the Use of Subminimum Wage Prohibits entities holding 14c special wage certificates from paying less than the Federal minimum wage to any individual with a disability age 24 or younger, unless individual has participated in pre-employment services and accessed VR services 14

Policy Objectives of Section 458 Reduces the “tracking” of transition aged youth into non-competitive jobs Supports the Employment First agenda Consistent with the DOJ’s enforcement of the Olmstead decision Ensures the informed choice process includes consideration of and experience with competitive integrated employment via access to VR 15

Per Sec. 458: Youth with disabilities can only be paid subminimum wage when: – Have participated in pre-employment transition services from VR or local educational agency; and – Applied for VR and determined ineligible; or – Were eligible for VR, had IPE, and worked toward employment outcome without success; and – VR case was closed and they received career counseling and information regarding other resources offering competitive employment services and supports 16

Section 458 (b)(2): Contracts with schools Local or state educational agencies cannot contract with entities holding a subminimum wage certificate for the purpose of operating a program to employ individuals with disabilities younger than age 24 at wages below minimum wage 17

Section 458 (c): For persons already working at subminimum wage Entities holding 14c special wage certificate cannot continue to employ individuals with disabilities, regardless of age, at subminimum wage unless VR provides career counseling and information that facilitates independent decision making and informed choice – Review must be done every 6 months for first year of employment, then annually thereafter 18

Section 458 (d): Documentation of informed choice process VR and state educational agency must develop process that documents completion of informed choice actions VR must provide final documentation to the individual with a disability 19

Section 458 (e): Verification of documentation Employing entity must review documentation that verifies completion of informed choice requirements and maintain copies of that documentation Employing entity will be subject to audit by VR or the Department of Labor 20

Effective date for Section 458 This section takes effect 2 years after the date of enactment of WIOA – July 22,

WIOA: Important next steps NPRM due in early Spring, 2015 – Public comment period is required All provisions of WIOA take effect July 1, 2015, unless otherwise noted Final Rule must be published on or before January 22, 2016 Unified Plan to be submitted by March 3, 2016 ; common performance measures go into effect July 1,

For further information: DOL: ED/RSA: rsa/wioa-reauthorization.html rsa/wioa-reauthorization.html 23

Comments or Questions? KIMBERLEY PECK | DIRECTOR-VOCATIONAL REHABILITATION SERVICES Department of Employment and Economic Development 1st National Bank Building, 332 Minnesota Street, Suite E200, St. Paul MN Direct: Fax: