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 the mobility of qualified school psychologists across member states, recognizing licenses, and setting criteria for practicing in remote states. The bill also creates the Interstate Compact for School Psychologists Commission, detailing its membership, powers, and responsibilities, such as adopting rules, sharing information on licensee investigations, and providing immunity for commission members under certain conditions.

Additionally, the bill introduces provisions for active military members and their spouses, allowing them to maintain a home state license while relocating. It emphasizes transparency through public access to meetings and accurate record maintenance, while also granting the commission rulemaking authority and establishing procedures for addressing defaults by member states. The legislation clarifies that the compact does not interfere with existing state laws, superseding conflicting regulations, and asserts that all agreements between the commission and member states will be binding. The bill is set to take effect on July 1, 2025, allowing time for member states to prepare for its implementation.