S T A T E   O F   N E W   Y O R K
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                                    819
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2019
                                ___________
 
 Introduced  by M. of A. GLICK -- read once and referred to the Committee
   on Ways and Means
 
 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:

   Section 1. The tax law is amended by adding a new section 1816 to read
 as follows:
   §  1816. AUTOMATED SALES SUPPRESSION. (A) DEFINITIONS. AS USED IN THIS
 SECTION:
   (1) "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.
   (2) "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 TRANSACTION DATA.
   (3)  "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 WITH INTENT OR BY SPECIFIC DESIGN  IS  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.
   (4) "TRANSACTION DATA" MEANS DATA ASSOCIATED WITH 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05683-01-9

 A. 819                              2
 
 CHANGE,  THE DATE AND TIME OF THE PURCHASE, THE NAME, ADDRESS, AND IDEN-
 TIFICATION NUMBER OF THE VENDOR, AND THE RECEIPT,  SEQUENCE  OR  INVOICE
 NUMBER OF THE TRANSACTION.
   (5)  "TRANSACTION  REPORT" MEANS A REPORT DOCUMENTING DATA, INCLUDING,
 BUT NOT LIMITED TO, DATA ASSOCIATED WITH SALES, TAXES  COLLECTED,  MEDIA
 TOTALS, AND DISCOUNT VOIDS AT AN ELECTRONIC CASH REGISTER THAT IS PRINT-
 ED ON CASH REGISTER TAPE AT THE END OF A DAY OR SHIFT, OR A REPORT DOCU-
 MENTING EVERY ACTION AT AN ELECTRONIC CASH REGISTER THAT IS STORED ELEC-
 TRONICALLY.
   (6)  "PERSON"  SHALL HAVE THE SAME DEFINITION AS IN SUBDIVISION (A) OF
 SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
   (B) PROHIBITIONS. (1) IT IS AN  OFFENSE  FOR  A  PERSON  TO  KNOWINGLY
 PURCHASE,  POSSESS,  INSTALL, UPDATE, MAINTAIN, UPGRADE, TRANSFER OR USE
 ANY AUTOMATED SALES SUPPRESSION DEVICE, ZAPPER OR PHANTOM-WARE.   IT  IS
 ALSO  AN  OFFENSE  TO  TRANSMIT TRANSACTION DATA WITH THE INTENT OF DATA
 MANIPULATION FOR THE PURPOSE OF EVADING ANY TAXES UNDER THIS ARTICLE.
   (2) A VIOLATION OF PARAGRAPH ONE OF THIS  SUBDIVISION  IS  A  CLASS  E
 FELONY  PUNISHABLE  BY A FINE OF NOT LESS THAN FIVE THOUSAND DOLLARS BUT
 NOT MORE THAN TWENTY-FIVE THOUSAND DOLLARS AND,  FOR  A  SECOND  OFFENSE
 WITHIN  FIVE  YEARS,  BY  A  FINE  OF NOT LESS THAN TWENTY-FIVE THOUSAND
 DOLLARS BUT NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS AND, FOR A  THIRD
 OR  SUBSEQUENT  OFFENSE WITHIN TEN YEARS, BY A FINE OF NOT LESS THAN ONE
 HUNDRED THOUSAND  DOLLARS  BUT  NOT  MORE  THAN  FIVE  HUNDRED  THOUSAND
 DOLLARS.
   (3)  IT  IS  AN  OFFENSE  FOR A PERSON TO KNOWINGLY SELL ANY AUTOMATED
 SALES SUPPRESSION DEVICE, ZAPPER OR PHANTOM-WARE.
   (4) A VIOLATION OF PARAGRAPH THREE OF THIS SUBDIVISION IS  A  CLASS  E
 FELONY  PUNISHABLE  BY  A FINE OF TWENTY-FIVE THOUSAND DOLLARS PER INCI-
 DENT.
   (5) THE OFFENSES CREATED BY THIS SECTION SHALL BE IN ADDITION  TO  AND
 CONSIDERED  A  SEPARATE  OFFENSE  FROM  ANY  OFFENSE OF SECTION EIGHTEEN
 HUNDRED SEVENTEEN OF THIS PART.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date upon which it shall have become a law.