Designed to clarify the function of the Associate in Applied Science (AAS) degree, this report lists and explains criteria for the degree as a means of enhancing the potential of the AAS to serve as a national employment credential and as the curricular foundation for the occupational mission of the community, technical, and junior colleges. The criteria state: (1) associate degree programs designed primarily for immediate employment should be designated as AAS programs; (2) the AAS degree should be identified with a specialty designation, (3) AAS degree programs must be responsive to the employment needs of business, industry, public agencies, the military and entrepreneurship; (4) all components of the AAS degree requirements should be outcome oriented; (5) AAS degree requirements should be limited to 60 to 72 semester credit hours; (6) the technical specialty component of the AAS degree should constitute 50% to 75% of the credits; (7) general education requirements should constitute a minimum of 25% of course credits; (8) minimum admission criteria for AAS degree programs are essential; (9) AAS degree programs should be supported by student services designed for career-oriented students; (10) a curriculum structure with multiple exit/re-entry points is desirable; (11) credit should be awarded for prior experience; (12) curricula should be articulated with appropriate secondary schools; (13) articulation with appropriate and receptive four-year colleges should be gained through cooperative planning and transfer agreements; and (14) selected programs should be networked at local, state, and national levels. (AYC)