Merit Institute Merit

The Virginia Merit-Based Credentialing Act (VA-ACSA)

Virginia state companion to ACSA. Extends Va. Code Sec. 54.1-119.1 universal licensure recognition, Virginia Community College System, and Va. Code Title 58.1 individual and corporate income-tax credits.

THE VIRGINIA MERIT-BASED CREDENTIALING ACT (VA-ACSA)

Vehicle: State passage. Virginia General Assembly, regular session. Primary referral to House / Senate Commerce and Labor / Finance / Education.

SECTION 1. SHORT TITLE

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

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Va. Code Sec. 54.1-119.1 (enacted 2024) provides universal licensure recognition for out-of-state licensees; that the Virginia Community College System operates under Va. Code Title 23.1 Ch. 29; that the State Council of Higher Education for Virginia operates under Va. Code Title 23.1 Ch. 2; that the Virginia Board of Workforce Development operates under Va. Code Title 2.2 Ch. 24; that Va. Code Title 58.1 provides tax-credit authority. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH VIRGINIA LAW

Sec. 101. Definitions

  1. (a) “Virginia Recognized Merit Credential” or “VARMC” means a competency-based credential designated by the Chancellor of the Virginia Community College System in coordination with SCHEV 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 Va. Code Title 54.1.

Sec. 102. Coordination with Existing Virginia Law

  1. (a) Consistent with:
  • Va. Code Sec. 54.1-119.1 (universal recognition).
  • Va. Code Title 54.1 (professions and occupations).
  • Va. Code Title 23.1 (higher education).
  • Va. Code Title 2.2 Ch. 24 (Virginia Board of Workforce Development).
  • Va. Code Title 58.1 (taxation).

TITLE II — VIRGINIA RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The Chancellor of the Virginia Community College System, in coordination with SCHEV, shall maintain a Virginia Recognized Merit Credentials registry (“VARMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) Va. Code Title 2.2 Ch. 29 (Virginia Personnel Act) shall be applied so that a VARMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Virginia statute.

TITLE III — TAX INCENTIVE FOR SKILLS-BASED HIRING

Sec. 301. Virginia Skills-Based Hiring Tax Credit

  1. (a) A new credit is added to Va. Code Title 58.1 Ch. 3 (individual) and Ch. 4 (corporate) equal to a percentage of qualified first-year wages paid to a Virginia-resident employee whose qualifying pathway is a VARMC or Federal FRAC.
  2. (b) Coordinated with federal IRC Sec. 45AA; aggregate cap.
  3. (c) Virginia Department of Taxation administers.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting VARMC, 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 Va. Code Sec. 54.1-119.1.

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 Virginia bills: VA-MEWRA, VA-GT&P, VA-AI-Workforce.