Merit Institute Merit

The Washington Worker-Merit Credentialing Act (WA-ACSA)

Washington state companion to ACSA. Because Washington levies no personal or corporate income tax, the skills-based hiring incentive is structured as a Business and Occupation (B&O) tax credit under RCW Title 82 and a Workforce Training and Education Coordinating Board grant.

THE WASHINGTON WORKER-MERIT CREDENTIALING ACT (WA-ACSA)

Vehicle: State passage. Washington Legislature, regular session. Primary referral to House / Senate Postsecondary Education and Workforce / Labor and Commerce / Finance.

SECTION 1. SHORT TITLE

This Act may be cited as the “Washington Worker-Merit Credentialing Act (WA-ACSA).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The Legislature finds that Washington levies no personal income tax and no general corporate income tax; that Washington imposes a Business and Occupation Tax under RCW Title 82 Ch. 82.04; that the State Board for Community and Technical Colleges operates under RCW Ch. 28B.50; that the Workforce Training and Education Coordinating Board operates under RCW Ch. 28C.18; that Washington’s occupational licensure operates under RCW Title 18; and that RCW Ch. 49.46 (Minimum Wage Act) and RCW Ch. 49.60 (Law Against Discrimination) apply to all employment relationships. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH WASHINGTON LAW

Sec. 101. Definitions

  1. (a) “Washington Recognized Merit Credential” or “WARMC” means a competency-based credential designated by the Executive Director of the State Board for Community and Technical Colleges in coordination with the Workforce Board 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 RCW Title 18.

Sec. 102. Coordination with Existing Washington Law

  1. (a) Consistent with:
  • RCW Title 18 (professions and businesses).
  • RCW Ch. 28B.50 (SBCTC).
  • RCW Ch. 28C.18 (Workforce Board).
  • RCW Title 82 (excise taxes).
  • RCW Ch. 49.46; Ch. 49.60 (labor protections).

TITLE II — WASHINGTON RECOGNIZED MERIT CREDENTIALS

Sec. 201. Designation Authority

  1. (a) The Executive Director of SBCTC, in coordination with the Workforce Board, shall maintain a Washington Recognized Merit Credentials registry (“WARMC Registry”) in machine-readable form, updated at least annually, crosswalked to Federal FRAC.

Sec. 202. Degree-Optional State Employment

  1. (a) The Office of Financial Management, acting under the Personnel System Reform Act (RCW Ch. 41.06), shall apply classifications so that a WARMC-holder satisfies any position qualification stated in terms of a college degree, unless expressly required by Washington statute.

TITLE III — WORKFORCE-TRAINING INCENTIVE (No-Income-Tax Rewire)

Sec. 301. B&O Tax Credit / Workforce Board Grant

  1. (a) Given that Washington levies no individual or corporate income tax:
  • (i) A credit against the Business and Occupation Tax under RCW Title 82 Ch. 82.04 for qualified first-year wages paid to a Washington-resident employee whose qualifying pathway is a WARMC or Federal FRAC, and/or
  • (ii) A Workforce Board grant under RCW Ch. 28C.18 for qualifying hires, subject to appropriations.
  1. (b) Credit or grant availability is conditioned on compliance with RCW Ch. 49.46 and Ch. 49.60.
  2. (c) Department of Revenue and Workforce Board jointly administer.

TITLE IV — OCCUPATIONAL LICENSURE PORTABILITY

Sec. 401. Licensure by Demonstrated Competency

  1. (a) Demonstrated-competency pathway accepting WARMC, Federal FRAC, or examination-plus-supervised-experience, subject to public health and safety requirements.

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 on the July 1 following enactment.

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