Payment of expenses; compensation.

(1) A millionaire party licensee shall not pay an expense related to an event unless all of the following apply: (a) The expense is incurred in connection with the conduct of the event. (b) The expense is necessary and reasonable and falls into 1 of the following categories of expense: (i) The purchase or rental of equipment necessary for conducting the event and payment of services reasonably necessary for the repair of equipment. (ii) Cash prizes or the purchase of prizes of merchandise. (iii) Rental of the location at which the event is conducted. The rental expense must not exceed $250.00 for each event day. (iv) Janitorial services. (v) The fee required for issuance or reissuance of a license to conduct the event. (vi) Other reasonable expenses incurred by the licensee, not inconsistent with this act, as permitted by rule promulgated under this act. (c) The expense is itemized. (d) The expense is approved by the executive director in writing before the event. (2) A millionaire party licensee shall not accept any compensation in connection with an event unless the compensation is expressly authorized by this article or a rule promulgated under this article. (3) A millionaire party licensee shall not expend more than 45% of the gross profit from an event to pay expenses incurred in connection with the event. (4) A person shall not accept any commission, salary, pay, profit, or wage for participating in the management or operation of a millionaire party except as allowed under a rule promulgated under this act.