Merit Institute Merit

The South Carolina Merit-Based Credentialing Act (SC-ACSA)

South Carolina state companion to ACSA. Extends the SC Department of Employment and Workforce framework, SC Labor, Licensing and Regulation occupational-licensure universal recognition (Act 86, 2024), and the S.C. Code Title 12 Ch. 6 income-tax credits.

THE SOUTH CAROLINA MERIT-BASED CREDENTIALING ACT (SC-ACSA)

Vehicle: State passage. South Carolina General Assembly, regular session. Primary referral to House Labor, Commerce and Industry / Ways and Means and Senate Labor, Commerce and Industry / Finance.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that South Carolina enacted universal occupational-licensure recognition under S.C. Code Sec. 40-1-640 (Act 86 of 2024); that the South Carolina Department of Employment and Workforce administers workforce services under S.C. Code Title 41; that the South Carolina Commission on Higher Education operates under S.C. Code Title 59 Ch. 103; that the SC Technical College System operates under S.C. Code Title 59 Ch. 53 and administers workforce credentialing; that S.C. Code Title 12 Ch. 6 provides income-tax credits; and that the Workforce Industry Needs (WINs) scholarship operates under S.C. Code Sec. 59-59-10. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH SOUTH CAROLINA LAW

Sec. 101. Definitions

  1. (a) “South Carolina Recognized Merit Credential” or “SCRMC” means a competency-based credential designated by the Commission on Higher Education in coordination with the SC Technical College System Board under Sec. 201.
  2. (b) “Federal FRAC” means a Federally Recognized Alternative Credential under Section 202 of the federal ACSA.
  3. (c) “DEW industry credential” means a credential recognized by the South Carolina Department of Employment and Workforce.
  4. (d) “Covered State licensing authority” means an agency issuing an occupational license under S.C. Code Title 40 or comparable chapter.

Sec. 102. Coordination with Existing South Carolina Law

  1. (a) Consistent with:
  • S.C. Code Title 40 (professions and occupations) and Sec. 40-1-640 (universal recognition).
  • S.C. Code Title 59 Ch. 103 (Commission on Higher Education).
  • S.C. Code Title 59 Ch. 53 (Technical College System).
  • S.C. Code Title 41 (Department of Employment and Workforce).
  • S.C. Code Title 12 Ch. 6 (income tax) and Sec. 12-6-3415 (Research and Development Credit).
  • S.C. Code Title 8 (state employment) and Ch. 17 (State Human Resources).

TITLE II — SOUTH CAROLINA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The Commission on Higher Education, in coordination with the SC Technical College System Board, shall maintain a South Carolina Recognized Merit Credentials registry (“SCRMC Registry”) in machine-readable form, crosswalked to the Federal FRAC list, updated at least annually.
  2. (b) Inclusion: DEW industry credential, Federal FRAC, or satisfies Commission standards.

Sec. 202. Degree-Optional State Employment

  1. (a) S.C. Code Title 8 Ch. 17 (State Human Resources) shall be applied so that an SCRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required.
  2. (b) Annual reporting by the Division of State Human Resources.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

Sec. 301. South Carolina Skills-Based Hiring Income-Tax Credit

  1. (a) A new credit is added to S.C. Code Title 12 Ch. 6 Art. 25 equal to a percentage of qualified first-year wages paid to a South Carolina-domiciled employee whose qualifying pathway is an SCRMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; annual aggregate cap set in the appropriations bill.
  3. (c) SC Department of Revenue administers consistent with existing Sec. 12-6-3415 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 SCRMC, 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 out-of-state holders, consistent with Section 401 of the federal ACSA and S.C. Code Sec. 40-1-640.

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 South Carolina bills: SC-MEWRA, SC-GT&P, SC-AI-Workforce.