The bill proposes the creation of an interstate compact for school psychologists, aimed at streamlining the practice of school psychology across participating states. This compact will allow qualified school psychologists to obtain equivalent licenses in any member state without facing redundant licensing requirements, while still upholding high standards for service delivery and respecting each state's regulatory authority. Key features include definitions of relevant terms, a framework for state participation, and criteria for licensing, including provisions for active military members and their spouses. The establishment of the School Psychologist Interstate Licensure Compact Commission is also outlined, which will oversee the compact's implementation and ensure compliance among member states.

Additionally, the bill introduces new provisions to enhance the Commission's operational framework, such as the ability to accept donations, manage property, and establish budgets. It empowers the Commission to appoint committees, provide information to law enforcement, and determine state eligibility for participation. The bill also details financial responsibilities, including fee collection from member states and licensees, and establishes qualified immunity for Commission members. Furthermore, it outlines procedures for addressing defaults by member states, including written notice and potential termination from the Compact, while ensuring that the Compact remains effective even with fewer than seven member states. The bill emphasizes the importance of information exchange among states and includes provisions for dispute resolution and amendments to the Compact.