Merit Institute Merit

The South Dakota Merit-Based Credentialing Act (SD-ACSA)

South Dakota state companion to ACSA. Given South Dakota levies no individual or general corporate income tax, the skills-based hiring incentive is restructured as a sales-and-use-tax reinvestment credit and a direct workforce-grant award under S.D. Codified Laws Title 1 Ch. 16G (REDI Fund).

THE SOUTH DAKOTA MERIT-BASED CREDENTIALING ACT (SD-ACSA)

Vehicle: State passage. South Dakota Legislature, regular session. Primary referral to House / Senate Commerce and Energy / Taxation / Appropriations.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The Legislature finds that South Dakota levies no personal income tax and no general corporate income tax; that South Dakota enacted universal occupational-licensure recognition under S.D. Codified Laws Sec. 36-1A-34; that the South Dakota Board of Regents operates under S.D. Codified Laws Title 13 Ch. 49; that the South Dakota Board of Technical Education operates under S.D. Codified Laws Title 13 Ch. 39A (post-constitutional amendment, 2018); that the Department of Labor and Regulation operates under S.D. Codified Laws Title 60; that the Governor’s Office of Economic Development administers the Reinvestment Payment Program under S.D. Codified Laws Sec. 1-16G-56 et seq. and the Revolving Economic Development and Initiative (REDI) Fund; and that South Dakota’s core tax structure relies on sales and use taxes (S.D. Codified Laws Title 10 Ch. 45 and Ch. 46). This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH SOUTH DAKOTA LAW

Sec. 101. Definitions

  1. (a) “South Dakota Recognized Merit Credential” or “SDRMC” means a competency-based credential designated by the Executive Director of the Board of Technical Education in coordination with the Executive Director of the Board of Regents 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 S.D. Codified Laws Title 36.

Sec. 102. Coordination with Existing South Dakota Law

  1. (a) Consistent with:
  • S.D. Codified Laws Sec. 36-1A-34 (universal recognition).
  • S.D. Codified Laws Title 13 Ch. 49 (Board of Regents).
  • S.D. Codified Laws Title 13 Ch. 39A (Board of Technical Education).
  • S.D. Codified Laws Title 60 (Department of Labor and Regulation).
  • S.D. Codified Laws Sec. 1-16G-56 et seq. (Reinvestment Payment Program).

TITLE II — SOUTH DAKOTA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The Executive Director of the Board of Technical Education, in coordination with the Executive Director of the Board of Regents, shall maintain a South Dakota Recognized Merit Credentials registry (“SDRMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) S.D. Codified Laws Title 3 (Public Officers and Employees) shall be applied so that an SDRMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by South Dakota statute.

TITLE III — INCENTIVE FOR SKILLS-BASED HIRING (No-Corporate-Tax Rewire)

Sec. 301. Skills-Based Hiring Reinvestment Payment

  1. (a) Given that South Dakota levies no individual or general corporate income tax, no tax credit is imposed against such taxes. In lieu of a tax credit, the incentive is structured as:
  • (i) An expansion of the Reinvestment Payment Program under S.D. Codified Laws Sec. 1-16G-56 et seq., enabling qualifying employers to apply for a reinvestment payment for qualified first-year wages paid to an SDRMC- or Federal FRAC-holder, and/or
  • (ii) A direct workforce grant from the REDI Fund for qualified hires, subject to the availability of appropriations.
  1. (b) The Governor’s Office of Economic Development shall administer consistent with existing REDI Fund / Reinvestment Payment standards.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting SDRMC, 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 S.D. Codified Laws Sec. 36-1A-34.

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.

Canonical federal version: ACSA. Other South Dakota bills: SD-MEWRA, SD-GT&P, SD-AI-Workforce.