Counseling Compact Update

Dear MMHCA Members and All Counselors,

We are writing to give you an update after attending the Counseling Compact Commissioners’ meeting last week on 2/12/2025. Three of our Board members, Carol Berger, Dr. Larry Pfaff and Lauri Rowe attended the meeting with our Acuitas Lobbyist, Jane Diegel. The 3.5 hour meeting covered many issues including governance, financial reports, committee updates, legislative processes, and future implementation steps for the Counseling Compact.

Key takeaways from the Counseling Compact meeting:

1. They expect the first Privileges to Practice to possibly be available August 2025. Some states do not currently require FBI background checks. Enacting legislation to require FBI background checks will delay states from participating in the Compact. Currently no states have connected to the Compact database yet.
2. Reporting Encumbrances and Investigations - please see full report below for extensive information about how an encumbrance on an LPC’s license will be handled by their Home State and Member States.
3. Variation in state laws: What constitutes an “encumbrance” on a license can differ across states, creating inconsistencies.
4. The Compact is both a law and a contract, requiring mutual agreement among member states. There are Rules that will need to be written by the Commission to resolve some unanswered questions. Member states are required (per the Compact Law) to adhere to any Rules the Commission passes/agrees on at any time in the future.
5. Fees to participate in the Compact are still to be determined.

For the complete summary of the Compact Commissioners' 2/12/2025 meeting please see below our signatures.

Conclusion

The Counseling Compact Commission continues to make progress toward implementing multi-state licensing privileges. However, challenges remain, including state-level legislative approval, financial sustainability, and practitioner concerns over competition and regulatory oversight. The Commission remains committed to expanding membership, improving governance, and ensuring public protection while facilitating interstate practice for licensed counselors.

Thank you for your involvement in working to understand the Counseling Compact. 

If you have questions please send them to us at MMHCABOARD@mmhcanow.org

To join us in our work supporting and uplifting our profession please go HERE to become a member. 

Sincerely,

MMHCA's Board of Directors

Chris DeBoer, President

Krystin Sankey, Treasurer

Carol Berger, Secretary

Dr. Joy Creel, Member at Large

Dr. Larry Pfaff, Member at Large

Lauri Rowe, Member at Large

Dr. Elizabeth Teklinski, Education & Outreach Chair

Full Counseling Compact Meeting summary:

In reviewing fiscal years 2023-2024 the following accomplishments were noted: hiring an executive director (Greg Searles), hiring legal counsel, launching a website, starting work on the database (May 2024), and ongoing work toward being able to issue Privileges to Practice across state lines between Member States in the Compact.

Finance Committee Report

• Major funding sources for the Counseling Compact: American Counseling Association (ACA) and National Board for Certified Counselors (NBCC).
• Key expenditures: contractual services, executive director salary, secretarial services, legal expenses.
• The Compact aims to become financially self-sustaining once Privileges to Practice are issued.

Rules Committee Report

• Developed and reviewed rules for data reporting, criminal background checks, and legacy licensing.
• Conducted a full-day workshop to refine and finalize key regulatory provisions.

Summary reports from each committee compiled into a 70+ page document.

Governance Training & Legal Considerations

• The Compact is both a law and a contract, requiring mutual agreement among member states. 
• The Commission is a joint governmental agency, holding tax-exempt status under IRS regulations.
• Rules and bylaws follow a formal rulemaking process, including public comment and legislative review.
• Conflict of interest policies require commissioners to disclose potential conflicts when making decisions.

Scope of Practice Clarifications: 

• Home states control licensing decisions, while scope of practice for client care is governed separately by each remote state.
• Practitioners must comply with state laws and regulations where the client is located when services are delivered.

Database Development:

• The Commission is working on an automated system/database to manage licensing and privilege tracking.
• The database will ensure compliance with state reporting requirements for disciplinary actions.
• No states have connected with the database yet. 
• The creation of the database began in May of 2024.
• The Compact Commission does not have a way yet to confirm a person is a resident of their Home State. An LPC’s Home State is needed information for the database.

Reporting Encumbrances and Investigations

• States are required to report to the Compact database current, significant investigative information, even if a final adjudication has not been reached.(Licensing complaints that are being investigated which are significant.)
• A license under active investigation is not automatically considered encumbered unless restrictions on practice have been imposed.
• Once a formal disciplinary action is taken that limits practice, it must be reported to the Compact data system.
• The Compact’s database will flag encumbrances and ensure states are aware of any pending investigations before Privileges to Practice are granted.
• If a Counselor’s Home State license becomes encumbered they will lose their Privileges to Practice in all Compact Member States - until their license has been unencumbered for two years.
• A license is considered encumbered if the counselor has a restriction that limits their ability to “practice independently.”
• Limitations imposed as discipline by the Michigan Board of Counseling (BOC) such as supervision requirements, or probationary conditions may result in an encumbrance.
• A minor disciplinary measure, such as the BOC requiring the completion of continuing education units (CEUs), does not necessarily mean the license is encumbered unless the practitioner is restricted from practicing until they complete the requirement.
• If a counselor’s home state license is encumbered, the LPC loses their Compact privileges in all Member States.
• If a privilege to practice in a remote state is encumbered (but the Home State license remains in good standing), the practitioner may still have privileges in other Compact states, though renewal eligibility could be impacted.
• The home state can revoke a counselor’s license, which results in automatic loss of Compact privileges.
• A remote state can only revoke the privilege to practice within its borders, not the actual Home State license.

Legislative Hurdles:

• When there is a conflict between state law and Compact law, in most cases the Compact law supersedes (overrides) state law. This can create political resistance to adopting the Compact law.
• As we understand it, In the recent past, Michigan’s governor has been against giving legislative control to a body (e.g. the Compact Commissioners) outside of Michigan, preferring local control.

Unresolved Questions and Challenges

• Variation in state laws: What constitutes an encumbrance can differ across states, creating inconsistencies.
• Data system updates: How quickly and effectively encumbrances are reported and shared among states. The Compact Commission does not have a way yet to confirm an LPC’s residence.
• Fairness in enforcement: The need for clear guidelines to ensure minor infractions do not unnecessarily result in Compact ineligibility.
• Some states do not currently require FBI background checks. Enacting legislation to require FBI background checks will delay states from participating in the Compact.

Public & Professional Concerns:

• Private practice concerns: Fears that the Compact will allow large corporations (venture capital-backed platforms) to dominate the counseling landscape.
• AI & telehealth expansion: Questions raised about the future role of AI-driven therapy platforms.
• The Compact does not have a way in place yet to determine which state is the state where the licensee resides (Home State).

Your continued engagement in this discussion is crucial and welcome as we work together to understand and respond to these potential changes in our profession.

Additional links you may find helpful:

"Answers to Michigan Counselors’ Questions about the Counseling Compact."

📌 Listen to the Audio Version: [Click here]

📌 Download the Written Report: [Click here]

Please check out our beautiful website at MMHCANOW.org

LINK to the Counseling Compact website

LINK to our 1/30/25 Compact report

LINK to a 17 minute overview of the Compact by Chris DeBoer

LINK to 58 min video about vertical integration in Mental Health by Chris DeBoer

LINK to MMHCA's 2024 accomplishments

LINK to MMHCA’s 2025 accomplishments so far

LINK to MMHCA’s LinkedIn group.

LINK to MMHCA's YouTube channel

LINK to MMHCA's FaceBook page. Please follow us!