A marriage and family therapy corporation is a corporation that is authorized to render professional services, as defined in Section 13401 of the Corporations Code, so long as that corporation and its shareholders, officers, directors, and employees rendering professional services are in compliance with the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code), this article, and any other statute or regulation pertaining to that corporation and the conduct of its affairs. With respect to a marriage and family therapy corporation, the governmental agency referred to in the Moscone-Knox Professional Corporation Act is the Board of Behavioral Sciences.
Licensed Marriage and Family TherapistsMarriage and Family Therapy Corporations
Section § 4987.5
This law allows corporations to offer marriage and family therapy services, but only if they follow specific rules laid out in the Moscone-Knox Professional Corporation Act and other related laws. The corporation's shareholders, officers, directors, and employees must adhere to these regulations. In this context, the Board of Behavioral Sciences is the relevant authority overseeing these corporations.
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Section § 4987.6
If you're a professional licensed under this chapter and you break, try to break, help someone else break, or plan to break any rules from this article, or the Moscone-Knox Professional Corporation Act, or any related laws or regulations, it's considered unprofessional conduct and a violation.
It shall constitute unprofessional conduct and a violation of this chapter for any person licensed under this chapter to violate, attempt to violate, directly or indirectly, or assist in or abet the violation of, or conspire to violate, any provision or term of this article, the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code), or any regulations duly adopted under those laws.
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Section § 4987.7
In California, the name of a marriage and family therapy corporation must include certain words that clearly indicate their services, like "marriage," "family," or "child," along with words like "counseling" or "therapy." If the corporation uses a fictitious business name, it cannot be false, misleading, or deceptive. Additionally, they must inform patients that the treatment is being provided by a marriage and family therapy corporation before starting any treatment.
The name of a marriage and family therapy corporation shall contain one or more of the words “marriage,” “family,” or “child” together with one or more of the words “counseling,” “counselor,” “therapy,” or “therapist,” and wording or abbreviations denoting corporate existence. A marriage and family therapy corporation that conducts business under a fictitious business name shall not use any name that is false, misleading or deceptive, and shall inform the patient, prior to the commencement of treatment, that the business is conducted by a marriage and family therapy corporation.
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Section § 4987.8
If you're a director, shareholder, or officer in a marriage and family therapy corporation, you need to have a professional license as defined by a specific California Act, unless another rule in the Corporations Code says otherwise.
Except as provided in Section 13403 of the Corporations Code, each director, shareholder, and officer of a marriage and family therapy corporation shall be a licensed person as defined in the Moscone-Knox Professional Corporation Act.
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Section § 4988
If someone owns shares in a marriage and family therapy company but becomes disqualified from practicing, any money made from services during that time won't benefit them or their shares.
The income of a marriage and family therapy corporation attributable to professional services rendered while a shareholder is a disqualified person (as defined in the Moscone-Knox Professional Corporation Act) shall not in any manner accrue to the benefit of that shareholder or his or her shares in the marriage and family therapy corporation.
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Section § 4988.1
This law states that a marriage and family therapy corporation should not engage in any actions considered unprofessional for a licensed marriage and family therapist. The corporation must follow the same laws and regulations as individual therapists when practicing.
A marriage and family therapy corporation shall not do or fail to do any act the doing of which or the failure to do which would constitute unprofessional conduct under any statute, rule or regulation now or hereafter in effect. In the conduct of its practice, it shall observe and be bound by statutes, rules and regulations to the same extent as a person holding a license as a marriage and family therapist.
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Section § 4988.2
This section allows the board that oversees marriage and family therapy corporations to create and enforce rules to ensure these corporations operate properly. It specifies that these corporations must include rules in their founding documents about what happens to the shares of a disqualified or deceased shareholder, requiring them to be sold back to the company or to the remaining shareholders. Additionally, the corporations must have insurance or other forms of security to cover claims from clients related to their services.
The board may formulate and enforce rules and regulations to carry out the purposes and objectives of this article, including rules and regulations requiring (a) that the articles of incorporation or bylaws of a marriage and family therapy corporation shall include a provision whereby the capital stock of the corporation owned by a disqualified person (as defined in the Moscone-Knox Professional Corporation Act), or a deceased person, shall be sold to the corporation or to the remaining shareholders of the corporation within the time that rules and regulations may provide, and (b) that a marriage and family therapy corporation shall provide adequate security by insurance or otherwise for claims against it by its patients arising out of the rendering of professional services.
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