Merit Institute Merit

The Arkansas Merit-Based Credentialing Act (AR-ACSA)

Arkansas state companion to ACSA. Extends the Arkansas Division of Workforce Services (under ADOC), universal occupational-licensure recognition under Ark. Code Ann. Title 17, and Ark. Code Ann. Title 26 income-tax credit infrastructure.

THE ARKANSAS MERIT-BASED CREDENTIALING ACT (AR-ACSA)

Vehicle: State passage. Arkansas General Assembly, regular session. Primary referral to House / Senate Revenue and Taxation; education provisions to House / Senate Education; occupational-licensure provisions to House / Senate Public Health, Welfare and Labor.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Arkansas enacted universal occupational-licensure recognition for military-trained and other out-of-state applicants under Ark. Code Ann. Sec. 17-1-106 et seq.; that the Arkansas Division of Workforce Services (ADWS) operates under Ark. Code Ann. Title 11 Ch. 10 as part of the Arkansas Department of Commerce; that the Arkansas Department of Education oversees career and technical education under Ark. Code Ann. Title 6 Ch. 25; that the Division of Higher Education operates under Ark. Code Ann. Title 6 Ch. 61; that Ark. Code Ann. Title 26 Ch. 51 provides income-tax credits, including the research credit under Sec. 26-51-1102; and that Arkansas operates the ArFuture Grant under Ark. Code Ann. Sec. 6-85-101 et seq. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH ARKANSAS LAW

Sec. 101. Definitions

  1. (a) “Arkansas Recognized Merit Credential” or “ARRMC” means a competency-based credential designated by the Division of Higher Education Director in coordination with ADWS under Sec. 201.
  2. (b) “Federal FRAC” means a Federally Recognized Alternative Credential under Section 202 of the federal ACSA.
  3. (c) “ADWS industry credential” means a credential recognized by the Arkansas Division of Workforce Services.
  4. (d) “Covered State licensing authority” means an agency issuing an occupational license under Ark. Code Ann. Title 17.

Sec. 102. Coordination with Existing Arkansas Law

  1. (a) Consistent with:
  • Ark. Code Ann. Title 17 and Sec. 17-1-106 et seq. (licensure recognition).
  • Ark. Code Ann. Title 6 Ch. 61 (Division of Higher Education).
  • Ark. Code Ann. Title 6 Ch. 25 (Career and Technical Education).
  • Ark. Code Ann. Title 11 Ch. 10 (ADWS).
  • Ark. Code Ann. Title 26 Ch. 51 (income tax) and Sec. 26-51-1102 (research credit).
  • Ark. Code Ann. Sec. 6-85-101 et seq. (ArFuture Grant).
  • Ark. Code Ann. Title 21 (State Personnel).

TITLE II — ARKANSAS RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The Director of the Division of Higher Education, in coordination with the Director of ADWS, shall maintain an Arkansas Recognized Merit Credentials registry (“ARRMC Registry”) in machine-readable form, updated at least annually, crosswalked to the Federal FRAC list.

Sec. 202. Degree-Optional State Employment

  1. (a) Ark. Code Ann. Title 21 (State Personnel) shall be applied so that an ARRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Arkansas statute.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

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

  1. (a) A new credit is added to Ark. Code Ann. Title 26 Ch. 51 equal to a percentage of qualified first-year wages paid to an Arkansas-domiciled employee whose qualifying pathway is an ARRMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; annual aggregate cap set in the Revenue Stabilization Law.
  3. (c) Arkansas Department of Finance and Administration administers consistent with existing Sec. 26-51-1102 credit mechanics.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) A covered State licensing authority shall provide a demonstrated-competency pathway accepting an ARRMC, Federal FRAC, or examination-plus-supervised-experience.

Sec. 402. Interstate Recognition for Federal-Fund Recipients

  1. (a) A covered State licensing authority receiving Federal workforce funds under 29 U.S.C. Sec. 3161 et seq. shall recognize out-of-state holders of an ARRMC or Federal FRAC, consistent with Section 401 of the federal ACSA and Ark. Code Ann. Sec. 17-1-106 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 July 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 Arkansas bills: AR-MEWRA, AR-GT&P, AR-AI-Workforce.