Merit Institute Merit

The Arizona Merit-Based Credentialing Act (AZ-ACSA)

Arizona state companion to ACSA. Extends A.R.S. Sec. 32-4302 universal licensure recognition, Arizona Board of Regents / Maricopa Community Colleges, and A.R.S. Title 43 income-tax credits.

THE ARIZONA MERIT-BASED CREDENTIALING ACT (AZ-ACSA)

Vehicle: State passage. Arizona Legislature, regular session. Primary referral to House / Senate Commerce / Finance / Education.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The Legislature finds that Arizona enacted universal occupational-licensure recognition under A.R.S. Sec. 32-4302 (2019 HB 2569); that the Arizona Board of Regents operates under A.R.S. Title 15 Ch. 13; that Arizona community colleges operate under A.R.S. Title 15 Ch. 12; that the Arizona Department of Economic Security operates under A.R.S. Title 41 Ch. 12; that the Office of Economic Opportunity coordinates workforce development under A.R.S. Sec. 41-5402; and that A.R.S. Title 43 provides income-tax credits. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH ARIZONA LAW

Sec. 101. Definitions

  1. (a) “Arizona Recognized Merit Credential” or “AZRMC” means a competency-based credential designated by the President of the Arizona Board of Regents in coordination with the Superintendent of Public Instruction under Sec. 201.
  2. (b) “Federal FRAC” means a Federally Recognized Alternative Credential under Section 202 of the federal ACSA.
  3. (c) “Covered State licensing authority” means an agency issuing an occupational license under A.R.S. Title 32.

Sec. 102. Coordination with Existing Arizona Law

  1. (a) Consistent with:
  • A.R.S. Sec. 32-4302 (universal recognition).
  • A.R.S. Title 32 (occupational licensing).
  • A.R.S. Title 15 Ch. 12-13 (Community Colleges; Board of Regents).
  • A.R.S. Sec. 41-5402 (Office of Economic Opportunity).
  • A.R.S. Title 43 (income tax).

TITLE II — ARIZONA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The President of the Arizona Board of Regents, in coordination with the Superintendent of Public Instruction, shall maintain an Arizona Recognized Merit Credentials registry (“AZRMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) A.R.S. Title 41 Ch. 4 (State Personnel System) shall be applied so that an AZRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Arizona statute.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

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

  1. (a) A new credit is added to A.R.S. Title 43 equal to a percentage of qualified first-year wages paid to an Arizona-resident employee whose qualifying pathway is an AZRMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; aggregate cap.
  3. (c) Arizona Department of Revenue administers.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting AZRMC, 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 A.R.S. Sec. 32-4302.

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 the general effective date following the legislative session, except that Sec. 301 shall apply to tax years beginning on or after January 1 of the year following enactment.

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