Bill Text: NY S05852 | 2017-2018 | General Assembly | Amended

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Bill Title: Prohibits the use of automated sales suppression devices, zappers or phantom-ware.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-03-21 - referred to ways and means [S05852 Detail]

Download: New_York-2017-S05852-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         5852--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                       May 3, 2017
                                       ___________
        Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
          when printed to be committed to the Committee  on  Investigations  and
          Government  Operations  --  recommitted  to  the Committee on Investi-
          gations and Government Operations in accordance with  Senate  Rule  6,
          sec.  8  --  committee  discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee
        AN ACT to amend the tax law, in relation to prohibiting the use of auto-
          mated sales suppression devices, zappers or phantom-ware
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The tax law is amended by adding a new section 1816 to read
     2  as follows:
     3    §  1816. Automated sales suppression. (a) Definitions. As used in this
     4  section:
     5    (1) "Automated sales suppression device" or "zapper" means a  software
     6  program,  carried  on a memory stick or removable compact disc, accessed
     7  through an Internet link, or accessed  through  any  other  means,  that
     8  falsifies  the electronic records of electronic cash registers and other
     9  point-of-sale systems, including, but not limited to,  transaction  data
    10  and transaction reports.
    11    (2) "Electronic cash register" means a device that keeps a register or
    12  supporting  documents  through  the  means  of  an  electronic device or
    13  computer system designed to record transaction data for the  purpose  of
    14  computing, compiling, or processing transaction data.
    15    (3)  "Phantom-ware"  means  a  hidden, preinstalled, or installed at a
    16  later time programming option embedded in the  operating  system  of  an
    17  electronic  cash register or hardwired into the electronic cash register
    18  that with intent or by specific design  is  used  to  create  a  virtual
    19  second  till or may eliminate or manipulate transaction records that may
    20  or may not be preserved in digital formats  to  represent  the  true  or
    21  manipulated record of transactions in the electronic cash register.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03089-02-8
        S. 5852--A                          2
     1    (4) "Transaction data" means data associated with items purchased by a
     2  customer,  the  price for each item, a taxability determination for each
     3  item, a segregated tax amount for each of the taxed items, the amount of
     4  cash or credit tendered, the net amount  returned  to  the  customer  in
     5  change,  the date and time of the purchase, the name, address, and iden-
     6  tification number of the vendor, and the receipt,  sequence  or  invoice
     7  number of the transaction.
     8    (5)  "Transaction  report" means a report documenting data, including,
     9  but not limited to, data associated with sales, taxes  collected,  media
    10  totals, and discount voids at an electronic cash register that is print-
    11  ed on cash register tape at the end of a day or shift, or a report docu-
    12  menting every action at an electronic cash register that is stored elec-
    13  tronically.
    14    (6)  "Person"  shall have the same definition as in subdivision (a) of
    15  section eleven hundred one of this chapter.
    16    (b) Prohibitions. (1) It is an  offense  for  a  person  to  knowingly
    17  purchase,  possess,  install, update, maintain, upgrade, transfer or use
    18  any automated sales suppression device, zapper or phantom-ware.   It  is
    19  also  an  offense  to  transmit transaction data with the intent of data
    20  manipulation for the purpose of evading any taxes under this article.
    21    (2) A violation of paragraph one of this  subdivision  is  a  class  E
    22  felony  punishable  by a fine of not less than five thousand dollars but
    23  not more than twenty-five thousand dollars and,  for  a  second  offense
    24  within  five  years,  by  a  fine  of not less than twenty-five thousand
    25  dollars but not more than one hundred thousand dollars and, for a  third
    26  or  subsequent  offense within ten years, by a fine of not less than one
    27  hundred thousand  dollars  but  not  more  than  five  hundred  thousand
    28  dollars.
    29    (3)  It  is  an  offense  for a person to knowingly sell any automated
    30  sales suppression device, zapper or phantom-ware.
    31    (4) A violation of paragraph three of this subdivision is  a  class  E
    32  felony  punishable  by  a fine of twenty-five thousand dollars per inci-
    33  dent.
    34    (5) The offenses created by this section shall be in addition  to  and
    35  considered  a  separate  offense  from  any  offense of section eighteen
    36  hundred seventeen of this part.
    37    § 2. This act shall take effect on the first of January next  succeed-
    38  ing the date upon which it shall have become a law.