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

1. (1) “Nonexempt setting” means a setting that does not qualify as an exempt setting, as specified in Section 4996.14.

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

   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 clinical social work, as defined in Section 4996.9, in nonexempt settings at all times, except as follows:

1. (1) A social work intern may engage in the practice of clinical social work in a nonexempt setting that is not a private practice or a professional corporation, while pursuing a course of study leading to a master’s degree in social work pursuant to Section 4996.15.
2. (2) An applicant for registration as an associate may engage in the practice of clinical social work in a nonexempt setting that is not a private practice or a professional corporation before their registration number is issued if they are in compliance with subdivision (b) of Section 4996.23 and are gaining supervised experience that meets the requirements of this chapter.