Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 1603

as introduced - 89th Legislature (2015 - 2016) Posted on 03/24/2015 03:26pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21
2.22 2.23

A bill for an act
relating to taxation; sales and use; providing criminal and civil penalties for
use of automated sales suppression devices; proposing coding for new law in
Minnesota Statutes, chapter 609.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [609.858] USE OF AUTOMATED SALES SUPPRESSION DEVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Automated sales suppression device" or "zapper" means a software program,
carried on any tangible medium, 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.
new text end

new text begin (c) "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.
new text end

new text begin (d) "Phantom-ware" means hidden preinstalled, or later-installed 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 electronic
cash register 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.
new text end

new text begin (e) "Transaction data" includes items purchased by a customer, the price of each
item, the taxability determination for each item, a segregated tax amount for each of
the taxed items, 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.
new text end

new text begin (f) "Transaction report" means a report documenting, but not 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.
new text end

new text begin Subd. 2. new text end

new text begin Felony. new text end

new text begin A person who intentionally or knowingly sells, purchases, installs,
transfers, possesses, accesses, or uses an automated sales suppression device, zapper,
phantom-ware, or similar device is guilty of a felony and may be sentenced to imprisonment
of not more than five years or a payment of a fine of not more than $5,000, or both.
new text end

new text begin Subd. 3. new text end

new text begin Gross misdemeanor. new text end

new text begin A person who sells, purchases, installs, transfers,
possesses, accesses, or uses an automated sales suppression device, zapper, phantom-ware,
or similar device is guilty of a gross misdemeanor and may be sentenced to imprisonment
of not more than three years or payment of a fine of not more than $3,000, or both.
new text end

new text begin Subd. 4. new text end

new text begin Forfeiture. new text end

new text begin An automated sales suppression device, zapper, phantom-ware,
and any other device containing an automated sales suppression, zapper, or phantom-ware
device or software is contraband and subject to forfeiture under section 609.531.
new text end

new text begin Subd. 5. new text end

new text begin Civil liability. new text end

new text begin A person convicted under subdivision 2 or 3 is liable for a
civil penalty equal to all taxes and penalties due to the state as a result of the use of an
automated sales suppression device, zapper, or phantom-ware. Penalties imposed by this
section are in addition to any civil penalties under chapters 270C and 289A.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2015, and applies to crimes
committed on or after that date.
new text end