House Bill 327 establishes the Interstate Compact for School Psychologists, designed to enhance the practice of school psychology across member states by allowing for the recognition of licenses and facilitating the sharing of information regarding licensees. The bill outlines the requirements for states to join the compact, including the enactment of a compact statute and mechanisms for investigating complaints against licensees. It also defines key terms related to school psychology and establishes the Interstate Compact for School Psychologists Commission, which will oversee the compact's implementation, rulemaking, and dispute resolution processes. The bill includes provisions for the inclusion of active military members and their spouses in the licensing framework, ensuring they are recognized as holding a home state license.

Additionally, the bill introduces amendments to existing laws regarding the responsibilities and liabilities of licensees within the compact framework. It clarifies that actions taken by commission members must not result from intentional misconduct to be protected under the compact and specifies that the compact does not limit a licensee's liability for professional malpractice. The commission is granted authority to deny or terminate a state's participation if it finds a material constitutional departure, while also ensuring that member states can enforce their own laws consistent with the compact. The act is set to take effect on July 1, 2025.