When a Teacher recognizes that a senior student has a deep understanding of Dharma, is embodying the Precepts, is showing compassion and insight into the minds of others, and is, therefore, beginning to be able to take on teaching responsibilities in the sangha, they may give transmission to that student.
The student needs to have been practicing for many years, to have taken the Precepts, been shuso, and completed Seminary, though having completed all of these is no guarantee of receiving transmission. At Dharma Rain, Lay Teachers have received Denkai transmission and wear blue kesas and rakusus. Priest Teachers have received Denkai and wear yellowish-brown kesas and rakusus. All of these are able to take on students and give the Precepts to others. At some point priests may also receive Denbo transmission, which is considered to complete the full transmission process for priests, and at that point they are additionally empowered to ordain priests.