(a) For the purposes of this chapter, the following definitions apply:

1. (1) “Nonexempt setting” means any type of setting that does not qualify as an exempt setting, as specified in Section 4980.01.

2. (2) “Private practice” means a type of nonexempt setting that meets all of the following:

   1. (A) The practice is owned by a health professional who is licensed under this division either independently or jointly with one or more other health professionals who are licensed under this division.
   2. (B) The practice provides clinical mental health services, including psychotherapy, to clients.
   3. (C) One or more licensed health professionals are responsible for the practice and for the services provided and set conditions of client payment or reimbursement for the provision of services.
3. (3) “Professional corporation” means a type of nonexempt setting and private practice that has been formed pursuant to Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code.

(b) An active license or registration number shall be required to engage in the practice of marriage and family therapy, as defined in Section 4980.02, in nonexempt settings at all times with the following exceptions:

1. (1) A trainee may engage in the practice of marriage and family therapy in a nonexempt setting that is not a private practice or a professional corporation while they are gaining supervised experience that meets the requirements of this chapter under the jurisdiction and supervision of their school as specified in Section 4980.42.
2. (2) An applicant for registration as an associate may engage in the practice of marriage and family therapy in a nonexempt setting that is not a private practice or a professional corporation before the registration number is issued if they are in compliance with subdivision (b) of Section 4980.43 and are gaining supervised experience that meets the requirements of this chapter.