Bill Text: NY S05308 | 2015-2016 | General Assembly | Introduced

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

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2016-06-01 - referred to ways and means [S05308 Detail]

Download: New_York-2015-S05308-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5308
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 13, 2015
                                      ___________
       Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
         when printed to be committed to the Committee  on  Investigations  and
         Government Operations
       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    S 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.
   22    (4) "TRANSACTION DATA" MEANS DATA ASSOCIATED WITH ITEMS PURCHASED BY A
   23  CUSTOMER, THE PRICE FOR EACH ITEM, A TAXABILITY DETERMINATION  FOR  EACH
   24  ITEM, A SEGREGATED TAX AMOUNT FOR EACH OF THE TAXED ITEMS, THE AMOUNT OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03910-01-5
       S. 5308                             2
    1  CASH  OR  CREDIT  TENDERED,  THE  NET AMOUNT RETURNED TO THE CUSTOMER IN
    2  CHANGE, THE DATE AND TIME OF THE PURCHASE, THE NAME, ADDRESS, AND  IDEN-
    3  TIFICATION  NUMBER  OF  THE VENDOR, AND THE RECEIPT, SEQUENCE OR INVOICE
    4  NUMBER OF THE TRANSACTION.
    5    (5)  "TRANSACTION  REPORT" MEANS A REPORT DOCUMENTING DATA, INCLUDING,
    6  BUT NOT LIMITED TO, DATA ASSOCIATED WITH SALES, TAXES  COLLECTED,  MEDIA
    7  TOTALS, AND DISCOUNT VOIDS AT AN ELECTRONIC CASH REGISTER THAT IS PRINT-
    8  ED ON CASH REGISTER TAPE AT THE END OF A DAY OR SHIFT, OR A REPORT DOCU-
    9  MENTING EVERY ACTION AT AN ELECTRONIC CASH REGISTER THAT IS STORED ELEC-
   10  TRONICALLY.
   11    (6)  "PERSON"  SHALL HAVE THE SAME DEFINITION AS IN SUBDIVISION (A) OF
   12  SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
   13    (B) PROHIBITIONS. (1) IT IS AN  OFFENSE  FOR  A  PERSON  TO  KNOWINGLY
   14  PURCHASE,  POSSESS,  INSTALL, UPDATE, MAINTAIN, UPGRADE, TRANSFER OR USE
   15  ANY AUTOMATED SALES SUPPRESSION DEVICE, ZAPPER OR PHANTOM-WARE.   IT  IS
   16  ALSO  AN  OFFENSE  TO  TRANSMIT TRANSACTION DATA WITH THE INTENT OF DATA
   17  MANIPULATION FOR THE PURPOSE OF EVADING ANY TAXES UNDER THIS ARTICLE.
   18    (2) A VIOLATION OF PARAGRAPH ONE OF THIS  SUBDIVISION  IS  A  CLASS  E
   19  FELONY  PUNISHABLE  BY A FINE OF NOT LESS THAN FIVE THOUSAND DOLLARS BUT
   20  NOT MORE THAN TWENTY-FIVE THOUSAND DOLLARS AND,  FOR  A  SECOND  OFFENSE
   21  WITHIN  FIVE  YEARS,  BY  A  FINE  OF NOT LESS THAN TWENTY-FIVE THOUSAND
   22  DOLLARS BUT NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS AND, FOR A  THIRD
   23  OR  SUBSEQUENT  OFFENSE WITHIN TEN YEARS, BY A FINE OF NOT LESS THAN ONE
   24  HUNDRED THOUSAND  DOLLARS  BUT  NOT  MORE  THAN  FIVE  HUNDRED  THOUSAND
   25  DOLLARS.
   26    (3)  IT  IS  AN  OFFENSE  FOR A PERSON TO KNOWINGLY SELL ANY AUTOMATED
   27  SALES SUPPRESSION DEVICE, ZAPPER OR PHANTOM-WARE.
   28    (4) A VIOLATION OF PARAGRAPH THREE OF THIS SUBDIVISION IS  A  CLASS  E
   29  FELONY  PUNISHABLE  BY  A FINE OF TWENTY-FIVE THOUSAND DOLLARS PER INCI-
   30  DENT.
   31    (5) THE OFFENSES CREATED BY THIS SECTION SHALL BE IN ADDITION  TO  AND
   32  CONSIDERED  A  SEPARATE  OFFENSE  FROM  ANY  OFFENSE OF SECTION EIGHTEEN
   33  HUNDRED SEVENTEEN OF THIS PART.
   34    S 2. This act shall take effect January 1, 2017.