Mich. Admin. Code R. 432.1831

Current through Vol. 24-19, November 1, 2024

Section R. 432.1831 - Destruction of counterfeit chips and disposal of coins

Rule 831.

(1) This rule applies to a casino licensee and a casino license applicant.

(2) All of the following provisions apply to the notice of counterfeit chips:

(a) A casino licensee shall notify the board in writing, immediately upon the discovery of a counterfeit chip or chips that results in a loss of more than $1,000.00 to the licensee.

(b) The board or the Michigan state police may take possession of the counterfeit chips.

(c) The board shall determine the disposition of any counterfeit chip, including, but not limited to, destruction of a counterfeit chip, in accordance with these rules.

(3) All of the following provisions apply to the destruction of counterfeit chips and disposal of coins:

(a) Unless the board or a law enforcement officer instructs in writing, or a court of competent jurisdiction orders otherwise in a particular case, a casino licensee shall destroy or otherwise dispose of counterfeit chips discovered in the casino in a manner approved by the board.

(b) Unless the board or a law enforcement officer instructs in writing, or a court of competent jurisdiction orders otherwise in a particular case, a casino licensee may dispose of coins of the United States or any other nation discovered to have been incorrectly used in the casino or, in the case of foreign coins, may exchange them for United States currency or coins and include the currency or coins in the casino's currency or may dispose of them in any other lawful manner.

(c) A casino licensee or casino license applicant shall notify the board, in writing, not less than 30 days before counterfeit chips are destroyed. The casino licensee or casino license applicant shall notify the board of all of the following information:

(i) The number and denominations, actual and purported, of the coins and counterfeit chips destroyed or otherwise disposed of under this rule.

(ii) The date on which the coins and counterfeit chips were discovered.

(iii) The date, place, and method of destruction or other disposition, including, in the case of foreign coin exchanges, the exchange rate and the identity of the bank, exchange company, or other business or person at which, or with whom, the coins are exchanged.

(iv) The names of the occupational licensees carrying out the destruction or other disposition on behalf of the casino licensee or casino license applicant.

(v) Other information deemed necessary by the board to ensure compliance with the act and these rules.

(4) Unless otherwise approved by the board, not less than 2 people, 1 of whom is an agent of the board, shall be present when the counterfeit chips are destroyed.

(5) Unless the board notifies the casino licensee or casino license applicant within 30 days of the receipt of the letter set forth in subrule (3) of this rule, the method of destruction is deemed approved.

(6) A casino licensee or casino license applicant shall maintain records required by this rule for not less than 5 years.

Mich. Admin. Code R. 432.1831

1998-2000 AACS; 2019 MR 9, Eff. 5/17/2019