Merit Institute Merit

The Iowa Merit-Based Credentialing Act (IA-ACSA)

Iowa state companion to ACSA. Extends Iowa universal occupational-licensure recognition (HF 2627, 2020), Iowa Workforce Development infrastructure, and the Iowa Code Ch. 422 income-tax credit regime.

THE IOWA MERIT-BASED CREDENTIALING ACT (IA-ACSA)

Vehicle: State passage. Iowa General Assembly, regular session. Primary referral to House State Government / Ways and Means and Senate State Government / Ways and Means; education provisions to House / Senate Education.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Iowa enacted universal occupational-licensure recognition under Iowa Code Ch. 272C.12 et seq. (HF 2627, 2020); that Iowa Workforce Development administers workforce services under Iowa Code Ch. 84A; that the Iowa Department of Education governs community colleges under Iowa Code Ch. 260C; that the Iowa College Student Aid Commission administers aid programs under Iowa Code Ch. 261; that Iowa Code Ch. 422 provides income-tax credits including the Research Activities Credit under Sec. 422.10; and that Iowa operates the Last Dollar Scholarship and Future Ready Iowa under Iowa Code Ch. 84A.21-22. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH IOWA LAW

Sec. 101. Definitions

  1. (a) “Iowa Recognized Merit Credential” or “IARMC” means a competency-based credential designated by the Director of the Department of Education in coordination with the Director of Iowa Workforce Development under Sec. 201.
  2. (b) “Federal FRAC” means a Federally Recognized Alternative Credential under Section 202 of the federal ACSA.
  3. (c) “IWD industry credential” means a credential recognized by Iowa Workforce Development.
  4. (d) “Covered State licensing authority” means an agency issuing an occupational license under Iowa Code Ch. 272C or comparable chapter.

Sec. 102. Coordination with Existing Iowa Law

  1. (a) Consistent with:
  • Iowa Code Ch. 272C (universal licensing).
  • Iowa Code Ch. 84A (Iowa Workforce Development; Future Ready Iowa).
  • Iowa Code Ch. 260C (community colleges).
  • Iowa Code Ch. 261 (College Student Aid Commission) and Ch. 260H (Last Dollar Scholarship).
  • Iowa Code Ch. 422 (income tax) and Sec. 422.10 (Research Activities Credit).
  • Iowa Code Ch. 8A (Department of Administrative Services; state employment).

TITLE II — IOWA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The Director of the Department of Education, in coordination with the Director of IWD, shall maintain an Iowa Recognized Merit Credentials registry (“IARMC Registry”) in machine-readable form, updated at least annually, crosswalked to the Federal FRAC list.
  2. (b) Inclusion: IWD industry credential, Federal FRAC, or satisfies standards adopted by the two directors.

Sec. 202. Degree-Optional State Employment

  1. (a) Iowa Code Ch. 8A (Department of Administrative Services) shall be applied so that an IARMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Iowa statute.
  2. (b) The Department of Administrative Services shall publish annual reporting.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

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

  1. (a) A new credit is added to Iowa Code Ch. 422 equal to a percentage of qualified first-year wages paid to an Iowa-domiciled employee whose qualifying pathway is an IARMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; annual aggregate cap set by the General Appropriations Act.
  3. (c) Iowa Department of Revenue administers consistent with Sec. 422.10 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 IARMC, a 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 an out-of-state holder of an IARMC or Federal FRAC, consistent with Section 401 of the federal ACSA and Iowa Code Ch. 272C.12 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 Iowa bills: IA-MEWRA, IA-GT&P, IA-AI-Workforce.