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See Consumer Awareness for additional information about coins and other numismatic products sold in the marketplace today.
Use of Metal Tokens: Final Statement of Policy Volume 50 Federal Register 28679-81 (July, 15, 1985)
Agency: United States Mint, Treasury
Action: Final Statement of Treasury Policy Regarding the
Use of Metal Tokens
SUMMARY:
The United States Mint, Department of Treasury
announces its final statement of policy regarding
the use of metal tokens. The Mint has
historically been opposed to the production and
use of metal tokens because of its concern that
widespread use of tokens would lead to their
circulation in the community as coinage in
violation of the criminal code. Exceptions to
this opposition have been granted by the Mint for
the use of tokens by gambling casinos on a case-
by-case basis.
On September 2, 1983, the Mint notified the
public that it was proposing to change its policy
of opposition to metal tokens provided that
certain enumerated criteria were met. See 48 FR
40054. Public comment was invited and received.
The commenters endorsed the concept of the
restrictions and advocated expanding them to
insure against the unlawful use of tokens in
vending machines and other coin operated devices.
On June 21, 1984, the Mint published revised
token restrictions which generally adopted the
increased restrictions advocated by the
commenters. See 49 FR 2556. Public comment was again invited and
received. Having analyzed these comments the
Department now issues its final policy statement
on the use of metal tokens. The present policy
statement retains certain of the restrictions
while deleting others. The final statement is
aimed at providing the necessary guidance to the
public to insure the protection of U.S. coinage
while minimizing the adverse impact of the
restrictions on legitimate users of tokens.
EFFECTIVE DATE. This policy will be effective on July 15, 1985.
FOR FURTHER INFORMATION CONTACT:
Kenneth B. Gubin, Legal Counsel, United States Mint,
Room 1032 Warner Building, 501 13th St. N.W., Washington,
D.C. 20220
SUPPLEMENTARY INFORMATION:
Before discussing the specific comments to the previous notice, a preliminary point must be clarified. The policy which is reflected in the notice which is published today is intended for the advice and guidance of token manufacturers and users as well as the public generally. It represents the views of the Department of Treasury concerning measures which, if implemented, should minimize the possibility of a violation of the counterfeiting provisions of title 18, United States Code. This statement of policy does not prescribe mandatory specifications concerning the size, composition or other requirements for metal tokens. These matters may be the subject of state or local regulation. Rather, this notice simply informs the public, especially those who are in the business of manufacturing or using tokens, that as a general rule, the Department does not object to tokens which meet the restrictions which are set forth out in this notice. The prosecution of violations of the counterfeiting statutes is vested with the Department of Justice which will assess each claimed violation on the particular facts presented.
Summary of Comments
Approximately 36 comments were received. Commenters
expressed strong opposition to several of the restrictions.
First, a number of commenters were opposed to the
requirements that tokens contain 1) the name and location
of the establishment from which they originate on at least
one side and 2) language limiting redemption of the tokens
to the issuing establishment. Commenters pointed out that
requiring this information adds significantly to the costs
of the tokens. While large business concerns are able to
absorb these costs, it is asserted that smaller business
establishments which have been using a generic token
without this identifying information will be unable to
afford the increased costs. It is emphatically urged that
these requirements be abandoned.
The Department recognizes that the identification
requirements may impose significant costs upon the token
user. These requirements derive from conditions that were
originally placed upon casinos which were more able to
absorb the costs. Their purpose is to facilitate the
determination of the source of a potential violation so
that appropriate remedial action may be taken. The
Department believes that this goal will be attained
provided that tokens contain some mark which clearly identifies the
manufacturer. Accordingly, we have modified the restrictions to allow for the use of manufacturer's identifying mark or logo in place of the name of the originating establishment.
By far the most vehement opposition to the
restrictions was concerned with the prohibition of certain
diameter ranges for metal tokens. It was pointed out that
under the most recently proposed restrictions, one of the
most commonly used tokens, which is .900 inch in diameter,
would be prohibited. In addition, other size tokens would
be likewise not in compliance with the diameter
specifications. It was pointed out that there are millions
of such tokens in use throughout the United States.
Commenters urged that the increased restrictions on token
size were simply not necessary to achieve the Department's
purpose of safeguarding against the slugging of vending
machines. Moreover, commenters wished to know what mechanism
would be specified for the replacement of these tokens.
The restriction on the diameter of metal tokens is the
most essential means of minimizing the possibility that
tokens will be unlawfully used to slug vending and other
gaming machines. In view of the impact that the
prohibition of a .900 inch token would have on token users
throughout the United States, however, the Department has
carefully reexamined its restrictions and has determined
that its policy goals will be met by narrowing the
prohibited ranges for these "quarter-sized" tokens to .910
-.980. This range is large enough to exclude most tokens
which could find their way into vending machines without
excluding the popular .900 token.
Other diameter ranges have been likewise modified to
allow for the continued existence of tokens which have not
posed significant problems under the slugging statute.
Commenters objected to the minimum weight and
thickness restrictions embodied in our previous policy
statement. It is asserted that there is no reason for such
restrictions since a lighter weight and thinner tokens will
more easily be rejected by the coin mechanisms.
The Department has determined that the restrictions on
minimum weight and thickness for tokens are not necessary
in view of the protection afforded by the restrictions on
token diameters. Accordingly, these restrictions have been
eliminated.
A number of commenters objected to the requirements
concerning the composition of the tokens, especially to the
requirement that tokens which are composed of a copper
based material contain no more than twenty-five percent of
alloying materials. In addition, commenters object to the
requirement that tokens not be composed of a ferromagnetic
material.
The Department has determined that the restrictions on
the amount of alloying material for copper based tokens serves the purpose of providing added assurance that such tokens will not be unlawfully used instead of U.S. coinage in vending machines. Accordingly, the
restriction has been retained. The restriction has been modified, however, to require that the amount of alloying material be at least 20 percent of the token's weight. The Department believes that this modification will provide the necessary protection against slugging while minimizing its adverse impact on legitimate token users. With regard to the prohibition against ferromagnetic material, this provision has been modified to require only that tokens not be composed of material the magnetic properties of which will result in their being accepted by vending machines. This change will not restrict tokens whose magnetic properties are so slight that they should not be accepted by the coin mechanism.
Conditions for Department Approval
The Department does not oppose the production or use
of tokens which meet the following conditions:
- Tokens should be clearly identified with the name and
location of the establishment from they originate on at
least one side. Alternatively, tokens should contain an
identifying mark or logo which clearly indicates the identity of
the manufacturer.
- Tokens should not be within the following diameter
ranges (inches):
0.680- 0.775
0.810- 0.860
0.910- 0.980
1.018- 1.068
1.180- 1.230
1.475- 1.525
- Tokens shall not be manufactured from a three layered
material consisting of a copper nickel alloy clad on both
sides of a pure core, nor from a copper based material except if the total of zinc, nickel, aluminum, magnesium, and other alloying materials is at least 20 percent of the token's weight. In addition, tokens shall not
be manufactured from material which possesses sufficient
magnetic properties so as to be accepted by a coin
mechanism.
- Establishments using these tokens shall prominently
and conspicuously post signs on their premises notifying
patrons that federal law prohibits the use of such tokens
outside the premises for any monetary purpose whatever.
- The issuing establishments shall not accept tokens as
payment for any goods or services offered by such
establishment with the exception of the specific use for
which the tokens were designed.
- The design on the token shall not resemble any
current or past foreign or U.S. coinage.
The Department of Treasury believes that the
observance of these restrictions will minimize the
possibility of a violation of the counterfeiting statutes.
The prosecution of violations of these statutes is vested with the
Department of Justice which must evaluate any claimed
violation on the particular facts presented.
Katherine D. Ortega
Treasurer of the United States
[FR Doc. 85-16519 Filed 7-12-85; 8:45 a.m.]
Billing Code 4810-37-M
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