Mich. Admin. Code R. 436.1041 - Obtaining a license for use or benefit of another; participation permits
Rule 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).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.