October 20, 2011, Introduced by Senators PAPPAGEORGE, SCHUITMAKER, MEEKHOF, NOFS, HOPGOOD, COLBECK, JONES, CASWELL, MARLEAU, PROOS, GREEN, BIEDA and BRANDENBURG and referred to the Committee on Judiciary.




     A bill to amend 1931 PA 328, entitled


"The Michigan penal code,"


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




     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) An automated sales suppression device or phantom-ware and


any device containing an automated sales suppression device or


phantom-ware is contraband and may be seized without process by any


police officer.


     (5) 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.