SB-0768, As Passed House, May 10, 2012

SUBSTITUTE FOR

SENATE BILL NO. 768

     A bill to amend 1931 PA 328, entitled

"The Michigan penal code,"

(MCL 750.1 to 750.568) by adding section 411w.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 411w. (1) A person shall not knowingly sell, purchase,

install, transfer, or possess in this state any automated sales

suppression device or zapper or phantom-ware.

     (2) A person who violates subsection (1) is guilty of a felony

and shall be imprisoned for not less than 1 year or more than 5

years and, in addition, may be fined not more than $100,000.00.

     (3) A person who violates subsection (1) is liable for all

taxes and penalties due the state as the result of the fraudulent

use of an automated sales suppression device or phantom-ware and

shall disgorge all profits associated with the sale or use of an

automated sales suppression device or phantom-ware.

     (4) As used in this section:

     (a) "Automated sales suppression device" or "zapper" means a

software program carried on a memory stick or removable compact

disc, accessed through an internet link, or accessed through any

other means, that falsifies the electronic records of electronic

cash registers and other point-of-sale systems, including, but not

limited to, transaction data and transaction reports.

     (b) "Electronic cash register" means a device that keeps a

register or supporting documents through the means of an electronic

device or computer system designed to record transaction data for

the purpose of computing, compiling, or processing retail sales

transaction data in whatever manner.

     (c) "Phantom-ware" means a hidden, preinstalled, or installed

at a later time programming option embedded in the operating system

of an electronic cash register or hardwired into the electronic

cash register that can be used to create a virtual second till or

may eliminate or manipulate transaction records that may or may not

be preserved in digital formats to represent the true or

manipulated record of transactions in the electronic cash register.

     (d) "Transaction data" includes information regarding items

purchased by a customer, the price for each item, a taxability

determination for each item, a segregated tax amount for each of

the taxed items, the amount of cash or credit tendered, the net

amount returned to the customer in change, the date and time of the

purchase, the name, address, and identification number of the

vendor, and the receipt or invoice number of the transaction.

     (e) "Transaction report" means a report that includes, but

need not be limited to, the sales, taxes collected, media totals,

and discount voids at an electronic cash register that is printed

on cash register tape at the end of a day or shift, or a report

documenting every action at an electronic cash register that is

stored electronically.

     Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.