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.
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) 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
(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
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.