03-05 16:43 2nd Sub. (Gray) H.B. 260
Val L. Peterson proposes the following substitute bill:
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First Credential Program
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Val L. Peterson
Senate Sponsor: Ann Millner
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LONG TITLE
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General Description:
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This bill replaces the PRIME program to create the First Credential program.
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Highlighted Provisions:
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This bill:
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▸ requires designated pathway development positions to perform certain duties;
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▸ repeals the PRIME program;
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▸ establishes a first credential program;
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▸ requires development of a master plan for scaling credentialing programs;
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▸ establishes a master credential list of approved industry-recognized credentials;
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▸ ensures credits are transferable to higher education institutions and technical colleges;
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▸ provides a scholarship for students who complete the first credential program;
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▸ requires annual review and updates based on labor market needs;
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▸ provides a grant for implementation and incentives for outcomes;
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▸ mandates partnerships between schools, employers, and apprenticeship programs;
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▸ promotes stackable credentials that lead to career advancement;
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▸ coordinates language with other legislation contingent upon passage;
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▸ defines terms; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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This bill appropriates $3,000,000 in operating and capital budgets for fiscal year 2026,
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including:
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▸ $1,000,000 from Income Tax Fund; and
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▸ $2,000,000 from various sources as detailed in this bill.
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Other Special Clauses:
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This bill provides a special effective date.
2nd Sub. H.B. 260 2nd Sub. (Gray) H.B. 260 03-05 16:43
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This bill provides coordination clauses.
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Utah Code Sections Affected:
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AMENDS:
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53B-10-106, as last amended by Laws of Utah 2023, Chapter 453
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ENACTS:
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53E-10-310, Utah Code Annotated 1953
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REPEALS:
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53E-10-309, as last amended by Laws of Utah 2024, Chapter 29
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Utah Code Sections affected by Coordination Clause:
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53E-10-310, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 53B-10-106 is amended to read:
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53B-10-106 . Pathways development.
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(1) The board shall develop and implement a plan that creates clear educational pathways:
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(a) from a technical college described in Subsection 53B-1-102(1)(b) to a
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degree-granting institution;
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(b) in course work leading to a qualifying job or a qualifying degree as described in
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Section 53B-10-203; and
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(c) for high schools that offer criminal justice or protective services pathways programs,
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including information on:
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(i) available concurrent enrollment classes in subjects described in Section
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53B-8-112.5; and
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(ii) scholarship opportunities for careers as peace officers as defined in Section
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53B-8c-102.
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(2) The plan shall maximize efficiencies in transferring earned credit and help align
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academic programs with workforce needs.
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(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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board may make rules necessary to establish:
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(a) a plan described in this section[.] ; and
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(b) the job requirements related to regional pathway coordinators funded by the
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Legislature related to this section and as described in Subsection (4).
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(4) Under the direction of the Office of the Commissioner of Higher Education, regional
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pathway coordinators shall:
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(a) collaborate with regional secondary and postsecondary professionals in:
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(i) concurrent enrollment;
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(ii) career and technical education; and
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(iii) workforce development;
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(b) coordinate regional responsibilities with the professionals described in Subsection
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(4)(a) for programming that aligns work between:
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(i) the statewide college and career mapping efforts;
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(ii) the Utah First Credential program described in Section 53E-10-310; and
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(iii) related pathway initiatives, including those described in this section;
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(c) support implementation of:
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(i) the Utah First Credential program described in Section 53E-10-310; and
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(ii) future programming aligned with updates related to and within the Utah First
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Credential program described in Section 53E-10-310;
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(d) as the Office of the Commissioner of Higher Education requests, contribute to the
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development of:
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(i) the Utah First Credential Master Plan described in Section 53E-10-310;
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(ii) the master credential list described in Section 53E-10-310; and
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(iii) related Utah First Credential program elements described in Section 53E-10-310,
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including:
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(A) alignment of the first credential framework with college and career mapping;
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(B) regional needs assessments;
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(C) landscape analyses;
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(D) definitions and assessment tools; and
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(E) statewide reporting frameworks; and
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(e) provide required reporting on institutional and regional outcomes related to key
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performance indicators the Office of the Commissioner of Higher Education
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establishes.
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The following section is affected by a coordination clause at the end of this bill.
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Section 2. Section 53E-10-310 is enacted to read:
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53E-10-310 . Utah First Credential program.
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(1) As used in this section:
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(a) "Eligible institution" means a degree-granting institution of higher education or a
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technical college within the state system of higher education, as identified in
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Subsection 53B-2-101(1).
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(b) "First credential" means a certificate awarded by the state board to an eligible student
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who meets the criteria described in Subsection (7).
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(c) "Industry-recognized credential" means a credential that is:
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(i) developed and offered by, or endorsed by, a nationally recognized industry
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association or organization representing a sizable portion of the industry sector;
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(ii) sought or accepted by employers within the industry or sector as a recognized,
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preferred, or required credential for recruitment, screening, hiring, retention, or
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advancement purposes; and
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(iii) regularly reviewed, updated, and validated by the issuing body to ensure ongoing
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alignment with industry standards and labor market needs.
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(d) "Master credential list" means the list of approved industry-recognized credentials
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maintained by the state board in accordance with this section.
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(e) "Program" means the first credential program described in this section.
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(f) "Technical college" means the same as that term is defined in Section 53B-1-101.5.
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(2) The commissioner of higher education, the state superintendent of public instruction,
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and the governor's education advisor shall establish the First Credential Oversight
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Committee comprised of:
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(a) representatives from industries, including:
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(i) members of professional associations or trade groups; and
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(ii) employers from high-demand sectors as the state board determines in
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collaboration with the Utah Board of Higher Education and the Department of
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Workforce Services;
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(b) representatives from education including:
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(i) members from the state board;
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(ii) LEA administrators, such as a superintendent or charter school director;
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(iii) professionals from institutions of higher education, including technical colleges;
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(iv) career and technical education specialists; and
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(v) Talent Ready Utah; and
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(c) workforce development experts, including representatives from the Department of
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Workforce Services.
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(3) The state board shall staff the First Credential Oversight Committee.
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(4) The First Credential Oversight Committee shall develop a first credential master plan,
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which shall include:
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(a) a framework for developing and maintaining the master credential list;
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(b) a comprehensive needs assessment framework that evaluates:
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(i) resources available through institutions of higher education, including:
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(A) faculty expertise and availability;
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(B) facilities and equipment;
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(C) existing certification programs; and
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(D) potential for program expansion;
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(ii) industry partnership opportunities, including:
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(A) geographical proximity to potential partners;
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(B) willingness of local industries to participate;
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(C) capacity for work-based learning placements; and
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(D) alignment between industry needs and educational capabilities;
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(iii) general resource availability, including:
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(A) current funding streams and potential funding sources;
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(B) existing technology infrastructure;
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(C) qualified personnel and staffing needs; and
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(D) professional development requirements;
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(c) credential approval processes;
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(d) methods for ensuring industry demand alignment;
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(e) wage considerations for occupations associated with approved credentials;
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(f) clear definitions of industry-recognized credentials;
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(g) strategies for promoting stackability and sequencing of credentials;
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(h) approaches to ensure regional relevance of credentials;
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(i) mechanisms for collaboration between educational institutions, industry partners, and
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workforce development agencies;
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(j) strategies for continuous evaluation and improvement of the program;
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(k) the creation of a credentials review committee, including membership and duties;
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(l) in accordance with Subsection (17), an established framework of planning,
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implementation, and student outcome performance funding for an LEA administering
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first credential programming;
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(m) a weighted system for the master credential list that:
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(i) assigns higher values to credentials based on:
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(A) alignment with high-demand, high-wage occupations;
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(B) incorporation of multiple learning pathways, including coursework,
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apprenticeships, internships, work-based learning, and related service
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opportunities;
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(C) industry recognition and portability; and
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(D) stackability with other credentials or degrees;
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(ii) uses the weighted values to:
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(A) determine incentive funding levels;
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(B) prioritize program expansion support; and
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(C) guide student career planning; and
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(n) guidelines for LEAs to procure industry-recognized certification program licenses,
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including:
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(i) verification that certifications appear on the master credential list;
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(ii) requirement for competency-based assessments in proctored environments;
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(iii) documentation of local industry endorsement; and
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(iv) alignment with state and federal computer science initiatives where applicable,
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including the Computer Science for Utah Grant Program described in Section
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53B-34-106.
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(5) In accordance with the Utah First Credential Master Plan, the state board shall:
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(a) ensure that the credentials review committee membership reflects a balance of
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perspectives and expertise;
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(b) develop an online application and submission system for credentialing organizations
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and providers to submit programs for inclusion in the master credential list;
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(c) establish and maintain the master credential list based on the recommendations of the
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credentials review committee;
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(d) develop clear mechanisms for students to understand how earning one credential can
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lead to higher-level certifications or degrees; and
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(e) foster partnerships between high schools, technical colleges, employers, and
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apprenticeship programs to ensure students have access to meaningful work-based
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learning opportunities.
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(6) The state board shall:
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(a) automatically include on the initial master credential list any existing credential that:
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(i) meets the definition of industry-recognized credential under this section; and
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(ii) is currently recognized by the state board or Utah Board of Higher Education as
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of July 1, 2024; and
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(b) review all automatically included credentials within one year to ensure ongoing
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compliance with program requirements.
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(7) The state board shall award a first credential certificate to an eligible student who
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completes one of the following:
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(a) concurrent enrollment courses, composed of:
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(i) between 12 and 18 core general education credits, or as industry standards dictate,
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with courses from different general education categories; or
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(ii) a prescribed set of courses as the Utah Board of Higher Education designates;
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(b) an industry-recognized credential included on the master credential list;
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(c) 300 hours of completion through a youth apprenticeship program that:
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(i) is described in Sections 35A-6-102 and 35A-6-104.5; and
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(ii) includes courses that fulfill the requirements for an industry-recognized credential
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included on the master credential list;
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(d) completion of a technical college certificate; or
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(e) completion of a Career and Technical Education Pathway program.
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(8) The Utah Board of Higher Education shall ensure that credits earned for a first
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credential certificate are:
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(a) accepted and transferable to institutions of higher education, including technical
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colleges; and
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(b) applicable towards relevant degree programs; and
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(c) recognized by relevant industries as adequate preparation for employment.
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(9) Subject to legislative appropriations, the Utah Board of Higher Education shall award a
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first credential scholarship to each student who earns a first credential certificate.
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(10) The first credential scholarship may be used at the following institutions:
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(a) a degree-granting institution of higher education or a technical college within the
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state system of higher education, as identified in Subsection 53B-2-101(1); or
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(b) a private, nonprofit college or university in the state that is accredited by the
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Northwest Commission on Colleges and Universities.
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(11) The Utah Board of Higher Education shall annually determine the first credential
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scholarship amount based on:
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(a) the number of eligible students; and
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(b) appropriations made by the Legislature.
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(12) A student may use the first credential scholarship for:
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(a) tuition and fees;
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(b) books and supplies; or
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(c) other educational expenses as the Utah Board of Higher Education determines.
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(13) The Utah Board of Higher Education shall ensure the scholarship is valid for use
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within three years from the date the student graduates from high school.
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(14) A student may earn the first credential scholarship in addition to any other
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state-sponsored scholarships for which the student may be eligible.
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(15) The first credential oversight committee shall present the master plan described in
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Subsection (4) to the Education Interim Committee by the November 2025 interim
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committee meeting.
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(16) Every three years, the First Credential Oversight Committee shall:
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(a) review of the Utah First Credential Master Plan;
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(b) as needed, create a list of recommendations and update the Utah First Credential
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Master Plan;
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(c) report the list of recommendations and the updated Utah First Credential Master Plan
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to:
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(i) the state board;
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(ii) the Utah Board of Higher Education;
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(iii) the Department of Workforce Services;
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(iv) the Education Interim Committee; and
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(v) the Economic Development and Workforce Services Interim Committee.
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(17) The state board shall administer a first credential grant program for an LEA and award
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a grant in accordance with the following process.
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(a) The First Credential Oversight Committee shall establish:
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(i) a needs assessment tool that evaluates:
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(A) an LEA's current first credential offering;
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(B) an LEA's capacity to develop or expand a first credential pathway;
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(C) resources and support needed for a first credential program, including
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resources available through institutions of higher education, industry
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partnership opportunities, and general resource availability; and
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(D) each potential barrier to implementation; and
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(ii) a continuum of need to place each applying LEA.
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(b) An LEA seeking a first credential grant shall submit to the First Credential Oversight
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Committee:
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(i) a completed needs assessment; and
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(ii) a grant application that contains:
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(A) current first credential data, including current credentials offered;
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(B) preliminary goals for creating or expanding first credential opportunities
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within the LEA; and
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(C) if applicable, plans for procurement of industry certification program licenses,
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including certification details and alignment with master credential list,
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documentation of employer endorsements, assessment and proctoring
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procedures, and integration with existing computer science programs.
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(c) The First Credential Oversight Committee shall:
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(i) review each submitted application and needs assessment;
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(ii) assign the LEA a placement on the continuum of need; and
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(iii) provide to the LEA a specific requirement for an implementation plan based on:
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(A) the LEA's continuum placement;
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(B) each identified area for growth;
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(C) each available resource; and
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(D) each additional factor the First Credential Oversight Committee determines
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relevant.
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(d) An LEA shall submit to the First Credential Oversight Committee an implementation
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plan that includes:
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(i) specific goals for expanding a first credential opportunity;
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(ii) each implementation step and timeline;
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(iii) a detailed cost projection; and
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(iv) each additional element the committee requires based on the needs assessment
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results.
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(e) The First Credential Oversight Committee shall:
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(i) review the implementation plan;
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(ii) direct technical assistance to the LEA in accordance with the LEA's
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implementation plan;
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(iii) provide feedback to the LEA to improve the implementation plan;
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(iv) approve each implementation plan that meets the established criteria; and
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(v) award an implementation grant for each approved plan.
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(f) Subject to legislative appropriations, the state board shall:
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(i) award an incentive grant to an LEA that:
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(A) has implemented an approved plan;
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(B) increases the number of students who earn a first credential certificate; and
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(C) achieves each established implementation goal; and
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(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
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and in collaboration with the First Credential Oversight Committee, establish by
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rule:
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(A) tiers for incentive grant awards;
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(B) performance metrics for continued funding;
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(C) reporting requirements for a grant recipient;
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(D) requirements for reporting certification program outcomes and industry
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alignment;
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(E) procedures for coordinating with computer science initiative grants; and
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(F) guidelines for certification program procurement and implementation.
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(18) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in
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collaboration with the Utah Board of Higher Education and the Department of
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Workforce Services, the state board shall make rules to implement the provisions of this
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section.
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Section 3. Repealer.
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This bill repeals:
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Section 53E-10-309, Utah PRIME Program -- LAUNCH certificate -- TRANSFORM
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certificate.
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Section 4. FY 2026 Appropriations.
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The following sums of money are appropriated for the fiscal year beginning July 1,
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2025, and ending June 30, 2026. These are additions to amounts previously appropriated for
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fiscal year 2026.
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Subsection 4(a). Operating and Capital Budgets
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Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
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Legislature appropriates the following sums of money from the funds or accounts indicated for
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the use and support of the government of the state of Utah.
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ITEM 1 To Utah Board of Higher Education - Student Assistance
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From Income Tax Fund, One-time 1,000,000
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Schedule of Programs:
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Prime Pilot Program Amendments 1,000,000
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The Legislature intends that the Utah System of
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Higher Education uses $1,000,000 one-time
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appropriation for:
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(1) providing scholarship funding to students completing the
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student's first credential; and
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(2) creating completion incentives for a student who completes a
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technical college certificate.
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ITEM 2 To State Board of Education - System Standards & Accountability
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From Public Education Economic Stabilization
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Restricted Account, One-time 2,000,000
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Schedule of Programs:
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Ŝ→ [Teaching and Learning (800,000)] ←Ŝ
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First Credential Program Ŝ→ [2,800,000] 2,000,000 ←Ŝ
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The Legislature intends that the State Board of
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Education use:
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(1) $500,000 one-time appropriation for the
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development of the First Credential Master Plan, where:
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(a) the First Credential Oversight Committee shall work with
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stakeholders to develop the framework for the first
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credential program; and
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(b) findings shall be presented to the October 2025 Education
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Interim meeting.
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(2) $500,000 one-time appropriation for the
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development of the approved master credential list to:
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(a) outline targeted industry clusters, skill clusters, credential
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naming, and approved providers or certifiers;
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(b) establish a credential review committee; and
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(c) create new first credentials and endorsements.
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(3) $1,000,000 one-time appropriation for K-12
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performace incentives to:
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(a) establish a mechanism for incentivizing first credential
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completers; and
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(b) implement a weighted system where a school can earn
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performance dollars based on the quantity and quality of
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the first credentials earned by students enrolled at the
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school.
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Section 5. Effective Date.
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This bill takes effect on July 1, 2025.
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Section 6. Coordinating H.B. 260 with H.B. 447.
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If H.B. 260, First Credential Program, and H.B. 447, Statewide Catalyst Campus Model,
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both pass and become law, the Legislature intends that, on July 1, 2025:
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(1) Subsection 53E-3-507.1(1)(a) enacted in H.B. 447 be amended to read:
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"(a) "Catalyst center" means a program or facility operated by an LEA that:
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(i) provides learning experiences and instruction that replicate professional
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environments and workplace practices, including experiences obtained through the Utah First
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Credential program described in Section 53E-10-310;
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(ii) provides profession-based learning experiences by partnering with local industry,
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business, and community organizations to develop and implement student projects that address
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specific needs or objectives identified by those partners;
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(iii) aligns programs with high-skill, high-demand career pathways and postsecondary
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education opportunities;
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(iv) incorporates industry-standard tools, technologies, and methods into instruction and
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student work;
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(v) prioritizes student activities and profession-based learning projects to build durable
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professional skills aligned with industry standards and needs;
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(vi) facilitates mentorship and participation by industry professionals to guide a student
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and evaluate the student's work;
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(vii) includes an advisory board composed of industry, postsecondary, and community
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representatives to review program direction and ensure alignment with workforce needs; and
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(viii) establishes programs or activities that address gaps in training or resources within
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the local or regional workforce."; and
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(2) Subsections 53E-10-310(1) and (2) enacted in H.B. 260 be amended to read:
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"(1) As used in this section:
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(a) "Eligible institution" means a degree-granting institution of higher education or a
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technical college within the state system of higher education, as identified in Subsection
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53B-2-101(1).
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(b) "First credential" means a certificate awarded by the state board to an eligible
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student who meets the criteria described in Subsection (7).
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(c) (i) "Industry-recognized credential" means a credential that is:
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(A) developed and offered by, or endorsed by, a nationally recognized industry
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association or organization representing a sizable portion of the industry sector;
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(B) sought or accepted by employers within the industry or sector as a
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recognized, preferred, or required credential for recruitment, screening, hiring, retention, or
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advancement purposes; and
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(C) regularly reviewed, updated, and validated by the issuing body to ensure
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ongoing alignment with industry standards and labor market needs.
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(ii) "Industry-recognized credential" may also include a credential offered through a
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catalyst center as described in Section 53E-3-507.1.
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(d) "Master credential list" means the list of approved industry-recognized credentials
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maintained by the state board in accordance with this section.
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(e) "Program" means the first credential program described in this section.
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(f) "Technical college" means the same as that term is defined in Section 53B-1-101.5.
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(2) The commissioner of higher education, the state superintendent of public instruction,
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and the governor's education advisor shall establish the First Credential Oversight Committee
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comprised of:
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(a) representatives from industries, including:
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(i) members of professional associations or trade groups; and
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(ii) employers from high-demand sectors as the state board determines in
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collaboration with the Utah Board of Higher Education and the Department of Workforce
421
Services;
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(b) representatives from education including:
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(i) members from the state board;
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(ii) the director of the Catalyst Center Grant Program described in Section
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53E-3-507.1;
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(iii) LEA administrators, such as a superintendent or charter school director;
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(iv) professionals from institutions of higher education, including technical colleges;
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(v) career and technical education specialists; and
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(vi) Talent Ready Utah; and
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(c) workforce development experts, including representatives from the Department of
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Workforce Services.".
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