House Bill 327 establishes the Interstate Compact for School Psychologists, creating a framework that allows licensed school psychologists to practice across member states without facing duplicative licensing requirements. The bill outlines the purpose and objectives of the compact, including the formation of an Interstate Compact for School Psychologists Commission to oversee its implementation. Member states must meet specific criteria to join, such as sharing information and reporting adverse actions against school psychologists. The bill also sets forth the qualifications required for school psychologists to practice under the compact, including holding an active home state license and completing a qualifying national exam.

Additionally, the bill introduces amendments to clarify the responsibilities and liabilities of licensees within the compact framework. It specifies that actions taken by commission members must not result from intentional misconduct to be protected under the compact and maintains that the compact does not limit a licensee's liability for professional malpractice. The commission will have the authority to adopt rules, oversee compliance, and manage disputes among member states. The bill also includes provisions for member states to withdraw from the compact, ensuring that licenses granted under the compact remain valid for six months post-withdrawal. Overall, HB 327 aims to enhance the governance and operational framework of the compact while ensuring accountability and transparency among member states.