(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 4999.22.

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 professional clinical counseling, as defined in Section 4999.20, in nonexempt settings at all times, except as follows:

1. (1) A trainee may engage in the practice of professional clinical counseling 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 4999.36.
2. (2) An applicant for registration as an associate may engage in the practice of professional clinical counseling 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 4999.46 and are gaining supervised experience that meets the requirements of this chapter.