The bill establishes the Counseling Compact, designed to enhance the interstate practice of licensed professional counselors and improve public access to counseling services. It creates a framework for mutual recognition of licenses among member states, allowing counselors to practice across state lines without obtaining separate licenses. The compact maintains state regulatory authority to ensure public health and safety while promoting cooperation in regulating multistate practices. Key objectives include increasing access to services, supporting military spouses, and leveraging telehealth technology. States wishing to join the compact must meet specific criteria, including licensing requirements, a nationally recognized exam, and educational qualifications.

Additionally, the bill creates the Counseling Compact Commission to oversee the licensure and regulation of counselors across member states. The home state retains authority to take adverse actions against a counselor's license and must treat reported conduct from other member states as if it occurred within its jurisdiction. The commission will manage a coordinated database for licensure and adverse action information, ensuring member states can access relevant data while protecting confidentiality. The bill also outlines procedures for public hearings, rulemaking, and dispute resolution, granting the commission authority to enforce compliance and initiate legal action against defaulting states. The compact will take effect once enacted by the tenth member state, with provisions for withdrawal and amendment, ensuring that member states adhere to its rules.