Merit Institute Merit

The Alabama Merit-Based Credentialing Act (AL-ACSA)

Alabama state companion to ACSA. Extends Alabama Universal Occupational License Recognition (Act 2023-297), Alabama Community College System framework, and Ala. Code Title 40 Ch. 18 income-tax credits.

THE ALABAMA MERIT-BASED CREDENTIALING ACT (AL-ACSA)

Vehicle: State passage. Alabama Legislature, regular session. Primary referral to House Ways and Means Education / Commerce and Small Business and Senate Finance and Taxation Education / Governmental Affairs.

SECTION 1. SHORT TITLE

This Act may be cited as the “Alabama Merit-Based Credentialing Act (AL-ACSA).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The Legislature finds that Alabama enacted universal occupational-licensure recognition under Act 2023-297, codified at Ala. Code Sec. 34-8B-1 et seq. and related provisions of Title 34; that the Alabama Community College System (ACCS) operates under Ala. Code Title 16 Ch. 60; that the Alabama Commission on Higher Education operates under Ala. Code Sec. 16-5-1 et seq.; that the Alabama Department of Labor operates under Ala. Code Title 25; that Ala. Code Title 40 Ch. 18 provides income-tax credits, including the research-and-development credit under Sec. 40-18-420 et seq.; and that Alabama operates workforce-council infrastructure through the Governor’s Office of Education and Workforce Transformation. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH ALABAMA LAW

Sec. 101. Definitions

  1. (a) “Alabama Recognized Merit Credential” or “ALRMC” means a competency-based credential designated by the Chancellor of the Alabama Community College System in coordination with the ACHE Executive Director under Sec. 201.
  2. (b) “Federal FRAC” means a Federally Recognized Alternative Credential under Section 202 of the federal ACSA.
  3. (c) “ACCS industry credential” means a credential recognized by the Alabama Community College System.
  4. (d) “Covered State licensing authority” means an agency issuing an occupational license under Ala. Code Title 34.

Sec. 102. Coordination with Existing Alabama Law

  1. (a) Consistent with:
  • Ala. Code Title 34 and Sec. 34-8B-1 et seq. (universal recognition).
  • Ala. Code Title 16 Ch. 5 (ACHE) and Ch. 60 (ACCS).
  • Ala. Code Title 25 (Department of Labor).
  • Ala. Code Title 40 Ch. 18 (income tax); Sec. 40-18-420 et seq. (R&D).
  • Ala. Code Title 36 (state employment).

TITLE II — ALABAMA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The ACCS Chancellor, in coordination with the ACHE Executive Director, shall maintain an Alabama Recognized Merit Credentials registry (“ALRMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) Ala. Code Title 36 shall be applied so that an ALRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Alabama statute.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

Sec. 301. Alabama Skills-Based Hiring Income-Tax Credit

  1. (a) A new credit is added to Ala. Code Title 40 Ch. 18 equal to a percentage of qualified first-year wages paid to an Alabama-domiciled employee whose qualifying pathway is an ALRMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; aggregate cap.
  3. (c) Alabama Department of Revenue administers consistent with Sec. 40-18-420 et seq. mechanics.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting ALRMC, Federal FRAC, or examination-plus-supervised-experience.

Sec. 402. Interstate Recognition for Federal-Fund Recipients

  1. (a) Recognition by federally-funded authorities, consistent with Section 401 of the federal ACSA and Ala. Code Sec. 34-8B-1 et seq.

TITLE V — IMPLEMENTATION & GENERAL PROVISIONS

Sec. 501. Severability

If any provision is held invalid, the invalidity shall not affect the remainder.

Sec. 502. Effective Date

This Act shall take effect October 1 of the year following enactment, except that Sec. 301 shall apply to tax years beginning on or after January 1 of that year.

Canonical federal version: ACSA. Other Alabama bills: AL-MEWRA, AL-GT&P, AL-AI-Workforce.