A licensee who permanently removes from use or replaces chips or tokens at the licensee's establishment or who ceases operating the establishment for any reason must prepare a plan for redeeming discontinued chips and tokens that remain outstanding at the time of discontinuance. The licensee must submit the plan in writing to the executive secretary no later than 30 days before the discontinuance. If the cause for discontinuance of the chips or tokens cannot reasonably be anticipated, the licensee must submit the plan as soon as practicable. The executive secretary may approve the plan or require modifications as a condition of approval. Upon approval of the plan, the licensee must implement the plan as approved. In addition to other provisions the executive secretary may approve or require, the plan must provide the following:

1. (1) Redemption of outstanding, discontinued chips and tokens for 120 days after the discontinuance or for a longer or shorter period required by the executive secretary;
2. (2) Redemption of the chips and tokens at the premises of the licensed establishment or at another location approved by the executive secretary;
3. (3) Publication of notice of the discontinuance of the chips and tokens and their redemption and the pertinent times and locations. The notice must be published in at least two newspapers of general circulation in South Dakota at least twice during each week of the redemption period. Publication is subject to the executive secretary's approval of the form of the notice, the newspapers selected for publication, and the specific days of publication;
4. (4) Conspicuous posting of the notice at the licensed establishment or other redemption location; and

5. (5) Destruction of the discontinued tokens within ninety days from the completion of the redemption period.

   Discontinued chips must be disposed in a manner approved by the executive secretary.

Source: 16 SDR 157, effective October 1, 1989; 25 SDR 95, effective January 20, 1999; 28 SDR 24, effective August 28, 2001.

General Authority: SDCL 42-7B-7.

Law Implemented: SDCL 42-7B-7 , 42-7B-11(13).