2005 California Business and Professions Code Sections 4998-4998.6 Article 5. Licensed Clinical Social Workers Corporations

BUSINESS AND PROFESSIONS CODE
SECTION 4998-4998.6

4998.  A licensed clinical social worker 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 who are licensed clinical social
workers, physicians and surgeons, psychologists, marriage and family
therapists, registered nurses, chiropractors, or acupuncturists 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 all other statutes and
regulations now or hereafter enacted or adopted pertaining to that
corporation and the conduct of its affairs.  With respect to a
licensed clinical social worker corporation, the governmental agency
referred to in the Moscone-Knox Professional Corporation Act is the
Board of Behavioral Sciences.
4998.1.  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.
4998.2.  Notwithstanding Section 4996, the name of a licensed
clinical social worker corporation and any name or names under which
it may be rendering professional services shall contain the words
"licensed clinical social worker" and wording or abbreviations
denoting corporate existence.
   A licensed clinical social worker corporation that conducts
business under a fictitious business name shall not use any name
which is false, misleading, or deceptive, and shall inform the
patient, prior to the commencement of treatment, that the business is
conducted by a licensed clinical social worker corporation.
4998.3.  Except as provided in Section 13403 of the Corporations
Code, each director, shareholder, and officer of a licensed clinical
social worker corporation shall be a licensed person as defined in
the Moscone-Knox Professional Corporation Act.
4998.4.  The income of a licensed clinical social worker corporation
attributable to professional services rendered while a shareholder
is a disqualified person, as defined in the Moscone-Knox Professional
Corporation Act (Part 4 (commencing with Section 13400) of Division
3 of Title 1 of the Corporations Code), shall not in any manner
accrue to the benefit of that shareholder or his or her shares in the
licensed clinical social workers corporation.
4998.5.  A licensed clinical social worker 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 those statutes, rules, and
regulations to the same extent as a person holding a license as a
licensed clinical social worker.
4998.6.  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 licensed clinical social worker
corporation shall include a provision whereby the capital stock of
that 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 that
corporation within the time that the rules and regulations may
provide, and (b) that a licensed clinical social worker 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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