Section § 4999.123

Explanation

This law defines a 'professional clinical counselor corporation' as a corporation that can provide professional services, but only if it follows specific laws, including the Moscone-Knox Professional Corporation Act. The people involved in the corporation, like shareholders and employees, must also comply with these rules. For these corporations, any mention of 'governmental agency' in the Moscone-Knox Act refers specifically to the Board of Behavioral Sciences.

A professional clinical counselor 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 who are 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 professional clinical counselor corporation, the term “governmental agency” in the Moscone-Knox Professional Corporation Act (Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code) shall be construed to mean the Board of Behavioral Sciences.

Section § 4999.124

Explanation

This law says that any professional licensed under this chapter in California must not break, try to break, or help others break the rules of their professional conduct. This includes violating the specific laws mentioned, like the Moscone-Knox Professional Corporation Act and any related regulations.

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 regulation adopted under those laws.

Section § 4999.125

Explanation

This law specifies that if a company offers counseling services and identifies as a professional clinical counselor corporation, its name must include “licensed professional clinical counselor” or similar terms to show it is a corporation. If it uses a made-up business name, that name cannot be misleading or false. Additionally, clients must be informed before treatment starts that they are dealing with a professional clinical counselor corporation.

The name of a professional clinical counselor corporation and any name or names under which it may be rendering professional services shall contain the words “licensed professional clinical counselor” or “professional clinical counselor” and wording or abbreviations denoting a corporate existence. A professional clinical counselor corporation that conducts business under a fictitious business name shall not use any name that is false, misleading, or deceptive, and shall inform each patient, prior to commencement of treatment, that the business is conducted by a professional clinical counselor corporation.

Section § 4999.126

Explanation

This law states that anyone who is a director, shareholder, or officer in a professional clinical counselor corporation must have a license under certain conditions outlined in another section of the Corporations Code.

Except as provided in Section 13403 of the Corporations Code, each director, shareholder, and officer of a professional clinical counselor corporation shall be a licensed person, as defined in Section 13401 of the Corporations Code.

Section § 4999.127

Explanation

This law states that if a shareholder of a professional clinical counselor corporation becomes disqualified (not allowed to practice for some reason), any income from professional services they rendered should not benefit them or their shares in the company.

The income of a professional clinical counselor corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in Section 13401 of the Corporations Code, shall not in any manner accrue to the benefit of that shareholder or his or her shares in the professional clinical counselor corporation.

Section § 4999.128

Explanation

This law states that a professional clinical counselor corporation must not engage in any actions that would be considered unprofessional conduct. They have to follow all the same rules and regulations that licensed individual counselors do. Essentially, they need to behave just as a licensed counselor would, adhering strictly to the established standards.

A professional clinical counselor corporation shall not perform or fail to perform any act the performance of which, or for which the failure to perform, would constitute unprofessional conduct under any statute, rule, or regulation. In the conduct of its practice, a professional clinical counselor corporation shall observe and be bound by any statute, rule, or regulation that applies to a licensed professional clinical counselor.

Section § 4999.129

Explanation

This section allows a board to create rules to ensure professional clinical counselor corporations operate properly. One rule can require these corporations to make sure if a shareholder is disqualified or deceased, their shares are sold back to the corporation or other shareholders. Another rule can demand that the corporation has enough insurance or security to cover any claims made by patients due to professional services provided.

The board may formulate and enforce any rule or regulation to carry out the purposes and objectives of this article, including as follows:
(a)CA Business & Professions Code § 4999.129(a) Any rule or regulation that requires that the articles of incorporation or bylaws of a professional clinical counselor corporation shall include a provision that requires the capital stock of the corporation owned by a disqualified person, as defined in Section 13401 of the Corporations Code, or a deceased person to be sold to the corporation or to the remaining shareholders of the corporation within the timeframe that the rule or regulation requires.
(b)CA Business & Professions Code § 4999.129(b) Any rule or regulation that requires that a professional clinical counselor corporation shall provide adequate security by insurance or otherwise for claims against the corporation by its patients arising out of the rendering of professional services.