Merit Institute Merit

The North Carolina Merit-Based Credentialing Act (NC-ACSA)

North Carolina state companion to ACSA. Extends N.C. Gen. Stat. Sec. 93B-15.1 universal licensure recognition, UNC System / NC Community Colleges, and Article 3L corporate / Article 4 individual income-tax credits.

THE NORTH CAROLINA MERIT-BASED CREDENTIALING ACT (NC-ACSA)

Vehicle: State passage. North Carolina General Assembly, regular session. Primary referral to House / Senate Commerce / Finance / Education - Community Colleges.

SECTION 1. SHORT TITLE

This Act may be cited as the “North Carolina Merit-Based Credentialing Act (NC-ACSA).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that N.C. Gen. Stat. Sec. 93B-15.1 (S.L. 2019-123) provides for licensure recognition for out-of-state residents; that the University of North Carolina System operates under N.C. Const. Art. IX and N.C. Gen. Stat. Ch. 116; that the North Carolina Community College System operates under N.C. Gen. Stat. Ch. 115D; that the Department of Commerce and the North Carolina Works Commission oversee workforce development under N.C. Gen. Stat. Ch. 143B; and that Article 3L and Article 4 of N.C. Gen. Stat. Ch. 105 provide tax-credit authority. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH NORTH CAROLINA LAW

Sec. 101. Definitions

  1. (a) “North Carolina Recognized Merit Credential” or “NCRMC” means a competency-based credential designated by the President of the UNC System in coordination with the President of the NC Community College System 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 N.C. Gen. Stat. Ch. 93B.

Sec. 102. Coordination with Existing North Carolina Law

  1. (a) Consistent with:
  • N.C. Gen. Stat. Sec. 93B-15.1 (licensure recognition).
  • N.C. Gen. Stat. Ch. 93B (Occupational Licensing Boards).
  • N.C. Gen. Stat. Ch. 116 (UNC System).
  • N.C. Gen. Stat. Ch. 115D (Community Colleges).
  • N.C. Gen. Stat. Ch. 143B (Department of Commerce).

TITLE II — NORTH CAROLINA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The President of the UNC System, in coordination with the President of the NC Community College System, shall maintain a North Carolina Recognized Merit Credentials registry (“NCRMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) N.C. Gen. Stat. Ch. 126 (State Human Resources Act) shall be applied so that an NCRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by North Carolina statute.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

Sec. 301. North Carolina Skills-Based Hiring Tax Credit

  1. (a) A new credit is added to N.C. Gen. Stat. Ch. 105 Article 3L (business) and Article 4 (individual) equal to a percentage of qualified first-year wages paid to an NC-resident employee whose qualifying pathway is an NCRMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; aggregate cap.
  3. (c) North Carolina Department of Revenue administers.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting NCRMC, 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 N.C. Gen. Stat. Sec. 93B-15.1.

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 North Carolina bills: NC-MEWRA, NC-GT&P, NC-AI-Workforce.