Can Arizona LPCs Practice Across State Lines? Short answer - YES
September 30, 2025, marked a historic milestone for Licensed Professional Counselors in Arizona. The Counseling Compact officially launched, making Arizona one of the first two states in the nation to begin granting privileges for interstate practice. This groundbreaking development represents the most significant change in counselor mobility in over two decades.
If you're an Arizona LPC, this compact could dramatically expand your practice opportunities. But like any major regulatory change, it comes with specific requirements, processes, and limitations you need to understand.
What Is the Counseling Compact?
The Counseling Compact is an interstate agreement—essentially a contract among participating states—that allows licensed professional counselors to practice across state lines without obtaining multiple state licenses. Think of it like a driver's license for counselors: one license recognized in multiple states.
Instead of going through separate, lengthy licensure processes for each state where you want to practice, the compact creates a streamlined system. Eligible counselors can apply for a "privilege to practice" in other compact member states, which functions essentially as a license in those states.
This agreement operates on a mutual recognition model. Each participating state agrees to recognize the professional licenses of eligible counselors from other compact states, provided those counselors meet uniform licensure requirements.
Arizona's Role in the Compact Launch
Arizona and Minnesota are pioneering this initiative as the first two states to complete all technical and regulatory steps necessary for implementation. While 38 states and the District of Columbia have passed Counseling Compact legislation, only states that have completed secure data sharing systems, technical integration, and regulatory preparation can actively participate.
Arizona's participation became law when Governor Katie Hobbs signed Senate Bill 1173 on April 2, 2024. However, the law taking effect and the compact becoming operational are two different things. The months between passage and launch were spent building the technological infrastructure and regulatory framework to make interstate practice a reality.
The Arizona Board of Behavioral Health Examiners has worked diligently to ensure smooth implementation, coordinating with the Counseling Compact Commission and Minnesota to create a secure, functional system for verifying credentials and granting privileges.
Who Can Participate in the Compact?
Not every mental health professional can use the Counseling Compact. The agreement has specific eligibility requirements designed to ensure public protection and maintain professional standards.
Licensed Professional Counselors Only
Only Licensed Professional Counselors—or whatever equivalent title your state uses for the highest level of independent counseling practice—can participate. In Arizona, this means LPCs who hold independent licenses.
The compact does not include:
Associate counselors or counselors in training
Marriage and Family Therapists (MFTs have their own compact)
Social Workers (Social Workers have their own compact)
Art therapists, music therapists, or dance therapists
Psychologists (Psychologists have their own compact)
Any counselors still completing supervised hours
You must hold an active, unencumbered license to independently assess, diagnose, and treat behavioral health conditions. Recent graduates completing post-degree supervised experience are not eligible, regardless of whether their license title includes "LPC."
Home State Requirements
Your "home state" for compact purposes is the state where you primarily reside—not necessarily where you practice. To participate in the compact, you must:
Be licensed as an LPC in your home state
Your home state must be a compact member
Hold an active license in good standing
Have no disciplinary actions or restrictions on your license
Pass required background checks
Arizona LPCs who reside in Arizona can apply for privileges to practice in Minnesota. As more states complete their technical readiness, additional opportunities will become available.
How the Application Process Works
As of September 30, 2025, Arizona and Minnesota LPCs can apply for interstate privileges through CompactConnect.org, the centralized portal for all Counseling Compact applications.
What You'll Need to Apply
Before starting your application, gather the following:
Current, active LPC license from your home state
National Provider Identifier (NPI) number
Professional liability insurance information
Current curriculum vitae or resume
Education transcripts and degree verification
Work history documentation
Fingerprint-based background check results
The system pulls much of this information from existing licensure databases, but having documentation ready ensures a smooth process.
The Privilege to Practice
When approved, you receive a "privilege to practice" in the requested state. This privilege functions exactly like a license—it authorizes you to provide counseling services to clients located in that state, whether through in-person sessions or telehealth.
The verification process through the compact's data system is nearly instantaneous. Once your application is complete and approved, you can receive your privilege to practice in a matter of minutes, compared to the months-long process of obtaining a traditional state license.
Costs and Fees
Understanding the complete fee structure is important for budgeting and planning. There are two components to compact privilege costs:
Compact Commission Administrative Fee: $30 per privilege The Counseling Compact Commission charges a $30 administrative fee for each privilege you request. This fee covers the operational costs of maintaining the compact system, including the secure data sharing platform and verification processes.
If you apply for a privilege to practice in one state, you pay one $30 administrative fee. If you apply for privileges in multiple states, you pay $30 for each state. This structure keeps the administrative fee low while ensuring those who use the compact more frequently contribute proportionally to its operation.
State Fees: $0 to $264 per state In addition to the $30 administrative fee, each individual state sets its own fee for granting privileges. Based on similar compacts already operating, state fees range from $0 (some states charge nothing) to $264.
This means the total cost per privilege ranges from $30 (administrative fee only, if the state charges $0) to approximately $294 ($30 + $264 maximum state fee).
Additional Possible Costs Some states may require a jurisprudence examination, which tests your knowledge of that state's specific laws and regulations. States that require this exam may charge a separate exam fee, which varies by state.
Cost Comparison Compared to obtaining a traditional state license—which involves application fees, transcript fees, verification fees, and often takes 3-6 months—the compact privilege is generally faster and more cost-effective. You also avoid the repeated costs of sending official transcripts and exam score verifications to multiple states.
Before applying for privileges in specific states, check the Counseling Compact's fee page for current state-specific costs at counselingcompact.gov.
Current Limitations and Scope
Only Arizona and Minnesota for Now
As of the September 30, 2025 launch, the compact can only be used between Arizona and Minnesota. You cannot use the compact to see clients in any other states, even if those states have passed compact legislation.
Arizona LPCs who live in Arizona can apply for the privilege to practice in Minnesota. Minnesota LPCCs who live in Minnesota can apply for the privilege to practice in Arizona. That's it for now.
Additional States Coming Soon
Thirty-seven other states and the District of Columbia have passed Counseling Compact legislation and are working toward operational readiness. These states are completing the necessary technical infrastructure, data sharing agreements, and system testing required to participate.
The Counseling Compact Commission will add states as they meet all requirements. The timeline varies by state depending on their technological capabilities, regulatory processes, and resource allocation.
What This Means for Your Practice
The Counseling Compact opens significant new opportunities for Arizona LPCs, but it also requires understanding new responsibilities and regulations.
Practice Flexibility
If you have clients who travel frequently, relocate, or split time between states, the compact ensures continuity of care. Rather than terminating the therapeutic relationship when a client moves to Minnesota, you can apply for a privilege and continue treating them.
For counselors who want to offer telehealth services beyond Arizona's borders, the compact provides a legal pathway to do so, provided you obtain privileges in the states where your clients are located.
Expanded Market Opportunities
The compact creates new market possibilities. Counselors with specialized expertise—trauma specialists, eating disorder experts, LGBTQ+-affirming therapists—can now serve clients in compact states who might not have access to that specialization locally.
Arizona's strong mental health community and growing therapy market make Arizona-licensed counselors attractive to clients in other states seeking quality care.
Military Spouse Benefits
The compact is particularly significant for counselors who are military spouses. Frequent relocations have historically disrupted counseling careers, requiring new licensure processes with each move. The compact allows military spouse counselors to maintain active practice even as they relocate between compact states.
Responsibilities Under the Compact
Practicing under the Counseling Compact comes with specific obligations and responsibilities.
You Must Follow the Laws of the Client's Location
When you practice under a compact privilege, you must comply with all laws and regulations of the state where the client is physically located during services. This includes scope of practice rules, continuing education requirements, and professional conduct standards.
You're subject to the jurisdiction and disciplinary authority of both your home state and any state where you hold a privilege to practice.
Information Sharing Across States
The compact creates a shared interstate licensure data system. This system enhances public protection by ensuring member states rapidly share investigative and disciplinary information.
If disciplinary action occurs in one state, all other states where you hold licenses or privileges are notified. This transparency protects clients and maintains professional standards across state lines.
Maintaining Your Home State License
Your compact privileges depend on maintaining an active, unencumbered license in your home state. If your home state license lapses, is suspended, or faces disciplinary action, your privileges in other states are affected.
Keep your Arizona license current, complete the required continuing education, and maintain professional liability insurance that covers interstate practice.
Re-Attestation and Ongoing Requirements
Similar to other credentialing systems, the Counseling Compact likely requires periodic re-attestation or renewal of privileges. Stay current with any requirements established by the Counseling Compact Commission and individual states.
Monitor your email for communications from the compact system and individual state boards. Missing re-attestation deadlines could result in losing your privilege to practice.
How This Fits with Insurance Credentialing
If you accept insurance, understanding how the compact interacts with insurance credentialing is essential.
Compact Privileges vs. Insurance Paneling
The compact grants you legal authorization to practice in another state. It does not automatically credential you with insurance companies in that state.
To bill insurance for clients in a compact state, you'll still need to complete insurance credentialing processes with payers in that state. However, having a compact privilege may streamline this process since you have legal authorization to practice there.
Some insurance companies may develop specific policies for compact privileges. Stay informed about how major payers handle compact-authorized practice.
Telehealth Considerations
The compact explicitly supports telehealth practice across state lines. If you're providing telehealth services to a client in Minnesota while you're physically in Arizona, you need a privilege to practice in Minnesota.
Telehealth reimbursement policies vary by insurance company and state. Verify coverage and reimbursement rules before providing services.
Technology and Data Security
The Counseling Compact operates through CompactConnect, a secure online system that manages applications, verifies credentials, and facilitates information sharing between states.
This centralized system is designed with robust security measures to protect sensitive professional and personal information. The system underwent extensive testing before launch to ensure data protection and system reliability.
Looking Ahead: The Future of the Compact
While Arizona and Minnesota are the first states to launch, the compact's real power will emerge as more states join.
With 38 states and the District of Columbia having passed compact legislation, the majority of the country is moving toward interstate counselor mobility. As additional states complete their readiness requirements over the coming months and years, Arizona LPCs will have expanding opportunities to practice across an increasingly connected network of states.
This expansion addresses critical mental health access issues. Many Americans, particularly in rural and underserved areas, struggle to find mental health providers. The compact helps close these gaps by allowing qualified counselors to serve clients regardless of state boundaries.
Questions to Ask Your Board
If you're considering applying for a compact privilege, you might have specific questions about how Arizona implements compact requirements. The Arizona Board of Behavioral Health Examiners is your resource for:
State-specific requirements or limitations
How Arizona handles compact-related disciplinary matters
Whether Arizona requires any additional applications or fees beyond the compact process
How to report compact practice on license renewals
Arizona-specific interpretations of compact rules
Taking Action: Next Steps for Arizona LPCs
If you're interested in practicing under the Counseling Compact, here's what to do:
Verify Your Eligibility: Ensure you hold an active, unencumbered Arizona LPC license and primarily reside in Arizona.
Visit CompactConnect.org: Familiarize yourself with the application portal and requirements.
Gather Documentation: Collect all necessary documents before starting your application.
Apply for Privileges: Submit applications for states where you want to practice (currently Minnesota).
Update Professional Liability Insurance: Ensure your insurance covers interstate practice.
Stay Informed: Monitor communications from the Arizona Board of Behavioral Health Examiners and the Counseling Compact Commission about new states joining the compact.
A Historic Change for the Counseling Profession
The launch of the Counseling Compact represents more than administrative convenience. It's a fundamental shift in how professional counseling operates in the United States.
For decades, state-by-state licensure created barriers that limited counselors' ability to serve clients and restricted client access to specialized care. The compact removes these barriers while maintaining professional standards and public protection.
Arizona's position as a launch state demonstrates the state's commitment to expanding mental health access and supporting counseling professionals. As one of the first states to implement this groundbreaking agreement, Arizona is leading the way toward a more connected, accessible mental health care system.
Whether you practice exclusively in Arizona or dream of expanding your reach across state lines, understanding the Counseling Compact and how to participate positions you to take advantage of this historic opportunity.
The barriers that once confined counseling practice to single states are falling. Arizona LPCs now stand at the forefront of a new era in professional counseling—one where qualified counselors can serve clients wherever they're needed, and clients can access the specialized care they deserve regardless of geography.
