The bill establishes the Interstate Compact for School Psychologists, designed to enhance the interstate practice of school psychology and improve access to psychological services in educational settings. It outlines the compact's objectives, including promoting mobility for school psychologists, creating a streamlined licensing process, and ensuring that only qualified professionals provide services. The bill emphasizes the authority of each member state to regulate school psychology practice while ensuring compliance with local laws. It also specifies the requirements for states to join the compact, such as enacting compatible statutes and participating in information sharing.

Additionally, the bill creates the Interstate Compact for School Psychologists Commission, which will oversee the compact's implementation and operations. It includes provisions for active military members and their spouses regarding licensure, and details the commission's responsibilities, including conducting investigations and maintaining confidentiality. The bill mandates the exchange of licensee information among member states while clarifying that states retain control over their data. It also outlines the commission's rulemaking authority, procedures for emergency rule adoption, and the process for member states to withdraw from the compact. The bill is set to take effect on July 1, 2025, establishing a framework for the relationship between the compact and existing state laws.