Section R. 436.1041 - Obtaining a license for use or benefit of another; participation permitsRule 41.
(1) A licensee or an applicant for a license shall not obtain or attempt to obtain a license for the use or benefit of another person whose name does not appear on the license. In addition, a licensee shall not allow a person whose name does not appear on the license to use or benefit from the license.(2) The provisions of subrule (1) of this rule do not apply to a participating agreement where the commission approves a participating agreement after a showing of good cause and issues a participation permit to the licensee.(3) Upon written application of the licensee, the commission may issue a participation permit to a licensee who meets all of the following qualifications: (a) The non-licensed person who receives use or benefit from the licensee's license, or who receives gross sales or net profits from a licensed business, shall meet the same qualifications as a licensee as prescribed by R 436.1105(1)(a) and (2) and shall be considered an agent of the licensee as prescribed in R 436.1011.(b) The licensee shall submit a copy of the participation agreement with the application. The agreement shall include the term of the agreement and the percent or amount of sales to be received by the non-licensed person.(c) The non-licensed person or spouse is not ineligible to be issued a license under section 523(1) of 1998 PA 58, MCL 436.1523(1).(d) The licensee makes application and either cancels an existing participation permit or receives approval by the commission for a new participation permit before adding or deleting any participating non-licensed person. For the purposes of this subrule, the addition or deletion of a participant shall not constitute a transfer of interest in a license.(e) As used in this subrule, "non-licensed person" means a person as defined in section 111(1) of 1998 PA 58, MCL 436.1111(1).Mich. Admin. Code R. 436.1041
1979 AC; 2003 AACS; 2016 MR 23, Eff. 12/20/2016.