Merit Institute Merit

The Kentucky Merit-Based Credentialing Act (KY-ACSA)

Kentucky state companion to ACSA. Extends Kentucky occupational licensure recognition (KRS Ch. 335B), Kentucky Council on Postsecondary Education / KCTCS, and KRS Ch. 141 income-tax credits.

THE KENTUCKY MERIT-BASED CREDENTIALING ACT (KY-ACSA)

Vehicle: State passage. Kentucky General Assembly, regular session. Primary referral to House / Senate Economic Development / Appropriations and Revenue / Education.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Kentucky has enacted licensure-recognition and licensing-reform provisions under KRS Ch. 335B and related professional-licensing statutes; that the Council on Postsecondary Education operates under KRS Ch. 164; that the Kentucky Community and Technical College System (KCTCS) operates under KRS Ch. 164.580 et seq.; that the Kentucky Education and Labor Cabinet operates workforce programs under KRS Ch. 151B; and that KRS Ch. 141 provides income-tax credits. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH KENTUCKY LAW

Sec. 101. Definitions

  1. (a) “Kentucky Recognized Merit Credential” or “KYRMC” means a competency-based credential designated by the President of the Council on Postsecondary Education in coordination with KCTCS 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 KRS Title XXVI.

Sec. 102. Coordination with Existing Kentucky Law

  1. (a) Consistent with:
  • KRS Ch. 335B and related licensure provisions.
  • KRS Ch. 164 (Council on Postsecondary Education).
  • KRS Ch. 164.580 et seq. (KCTCS).
  • KRS Ch. 151B (Education and Labor Cabinet).
  • KRS Ch. 141 (income tax).

TITLE II — KENTUCKY RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The President of the Council on Postsecondary Education, in coordination with KCTCS, shall maintain a Kentucky Recognized Merit Credentials registry (“KYRMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) KRS Ch. 18A (State Personnel System) shall be applied so that a KYRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Kentucky statute.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

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

  1. (a) A new credit is added to KRS Ch. 141 equal to a percentage of qualified first-year wages paid to a Kentucky-resident employee whose qualifying pathway is a KYRMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; aggregate cap.
  3. (c) Kentucky Department of Revenue administers.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting KYRMC, 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.

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 the year following enactment.

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