AB 781, as introduced, Bocanegra. Sales and use taxes: fees: administration: violations for noncompliance: sales suppression devices.
Existing law requires the payment of taxes, fees, and surcharges that are administered by the State Board of Equalization under the provisions of the Sales and Use Tax Law and the Fee Collection Procedures Law, as prescribed.
This bill would, under those laws, provide that a person who knowingly sells, purchases, installs, transfers, or possesses in this state any automated sales suppression device or zapper or phantom-ware is guilty of a felony punishable by imprisonment for one, 3, or 5 years, and by a fine of not more than $100,000. This bill would also provide that the person is liable for all taxes, interest, and penalties due as the result of the use of an automated sales suppression device or zapper or phantom-ware and is required to forfeit to the state all profits associated with the sale or use of an automated sales suppression device or zapper or phantom-ware. By creating a new crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7153.6 is added to the Revenue and
2Taxation Code, to read:
(a) Notwithstanding any other provision of this part,
4a person who knowingly sells, purchases, installs, transfers, or
5possesses in this state any automated sales suppression device or
6zapper or phantom-ware is guilty of a felony punishable by
7imprisonment pursuant to subdivision (h) of Section 1170 of the
8Penal Code for one, three, or five years, and by a fine of not more
9than one hundred thousand dollars ($100,000). In addition, the
10person shall be liable for all taxes, interest, and penalties due as
11the result of the use of an automated sales suppression device or
12zapper or phantom-ware and shall forfeit to the state all profits
13associated with the sale or use of an automated sales suppression
14device or zapper or phantom-ware.
15(b) For purposes of this section:
16(1) “Automated sales suppression device” or “zapper” means
17a software program carried on a memory stick or removable
18compact disc, accessed through an Internet link, or accessed
19through any other means, that falsifies the electronic records of
20electronic cash registers and other point-of-sale systems, including,
21but not limited to, transaction data and transaction reports.
22(2) “Electronic cash register” means a device that keeps a
23register or supporting documents through the means of an
24electronic device or computer system designed to record transaction
25data for the purpose of computing, compiling, or processing retail
26sales transaction data in whatever manner.
27(3) “Phantom-ware” means a hidden, preinstalled, or installed
28at a later time programming option embedded in the operating
29system of
an electronic cash register or hardwired into the
30electronic cash register that can be used to create a virtual second
31till or may eliminate or manipulate transaction records that may
32or may not be preserved in digital formats to represent the true or
33manipulated record of transactions in the electronic cash register.
P3 1(4) “Transaction data” includes information regarding items
2purchased by a customer, the price for each item, a taxability
3determination for each item, a segregated tax amount for each of
4the taxed items, the amount of cash or credit tendered, the net
5amount returned to the customer in change, the date and time of
6the purchase, the name, address, and identification number of the
7vendor, and the receipt or invoice number of the transaction.
Section 55363.5 is added to the Revenue and Taxation
9Code, to read:
(a) Notwithstanding any other provision of this part,
11a person who knowingly sells, purchases, installs, transfers, or
12possesses in this state any automated sales suppression device or
13zapper or phantom-ware is guilty of a felony punishable by
14imprisonment pursuant to subdivision (h) of Section 1170 of the
15Penal Code for one, three, or five years, and by a fine of not more
16than one hundred thousand dollars ($100,000). In addition, the
17person shall be liable for all fees, interest, and penalties due as the
18result of the use of an automated sales suppression device or zapper
19or phantom-ware and shall forfeit to the state all profits associated
20with the sale or use of an automated sales suppression device or
21zapper or phantom-ware.
22(b) For purposes of this section:
23(1) “Automated sales suppression device” or “zapper” means
24a software program carried on a memory stick or removable
25compact disc, accessed through an Internet link, or accessed
26through any other means, that falsifies the electronic records of
27electronic cash registers and other point-of-sale systems, including,
28but not limited to, transaction data and transaction reports.
29(2) “Electronic cash register” means a device that keeps a
30register or supporting documents through the means of an
31electronic device or computer system designed to record transaction
32data for the purpose of computing, compiling, or processing retail
33sales transaction data in whatever manner.
34(3) “Phantom-ware” means a hidden, preinstalled, or installed
35at a later time programming option embedded in the operating
36system of
an electronic cash register or hardwired into the
37electronic cash register that can be used to create a virtual second
38till or may eliminate or manipulate transaction records that may
39or may not be preserved in digital formats to represent the true or
40manipulated record of transactions in the electronic cash register.
P4 1(4) “Transaction data” includes information regarding items
2purchased by a customer, the price for each item, a taxability
3determination for each item, a segregated tax or fee amount for
4each of the items subject to the tax or fee, the amount of cash or
5credit tendered, the net amount returned to the customer in change,
6the date and time of the purchase, the name, address, and
7identification number of the vendor, and the receipt or invoice
8number of the transaction.
No reimbursement is required by this act pursuant to
10Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district will be incurred because this act creates a new crime or
13infraction, eliminates a crime or infraction, or changes the penalty
14for a crime or infraction, within the meaning of Section 17556 of
15the Government Code, or changes the definition of a crime within
16the meaning of Section 6 of Article XIII B of the California
17Constitution.
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