§ 12.1-23-16 — Automated sales suppression device, zapper, or phantom-ware - Prohibition - Penalties

North Dakota § 12.1-23-16

• Jurisdiction: North Dakota
• Title 12.1: Criminal Code
• Ch. 12.1-23: Theft and Related Offenses

Text

Prohibition - Penalties.
1. For purposes of this section:
a. "Automated sales suppression device" or "zapper" means a software program
accessed through any method which falsifies the electronic records, transaction
data, or transaction reports of electronic cash registers and other point-of-sale
systems.
b. "Electronic cash register" means a device that keeps a register or supporting
documents through the use of an electronic device or computer system designed
to record transaction data for the purpose of computing, compiling, or processing
retail sales transaction data or transaction reports.
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, which can be used to
create a virtual second cash register or that can eliminate or manipulate
transaction records that may be preserved in digital formats to represent the true
or manipulated transaction data or reports in the electronic cash register and is
intended to falsify the electronic records of an electronic cash register or other
point-of-sale system.
d. "Transaction data" means 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 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 documenting sales, the tax collected,
methods of payment, voided sales, or other information at an electronic cash
register which is printed on cash register tape at the end of a day or shift, or a
report documenting every transaction at an electronic cash register that is stored
electronically.
2. It is unlawful to willfully sell, purchase, possess, install, transfer, manufacture, own, or
use in this state, an automated sales suppression device, zapper, or phantom-ware.
3. Any person convicted of a violation under subsection 2 is guilty of a class B felony. Any
person convicted of a second or subsequent violation of subsection 2 is guilty of a
class A felony and also is subject to a civil penalty of not more than one hundred
thousand dollars.
4. It is a defense to prosecution under this section that the person purchased,
possessed, installed, transferred, owned, or used in this state, an automated sales
suppression device, zapper, or phantom-ware for a legitimate purpose.
5. Any person violating subsection 2 is liable for all sales and use tax, income tax, or
other tax under title 57, and any county or city sales and use tax imposed under
sections 11-09.2-05 and 40-05.1-06, and associated penalties and interest due the
state as the result of the fraudulent use of an automated sales suppression device,
zapper, or phantom-ware. Any tax found to be due must be assessed at double the
amount so determined.

6. The person shall forfeit all proceeds associated with the sale or use of an automated
sales suppression device, zapper, or phantom-ware. The proceeds forfeited under this
section must be deposited with the state treasurer for deposit in the state general fund.
7. An automated sales suppression device, zapper, or phantom-ware, and the cash
register or other device containing the device or the software, is contraband and
subject to forfeiture in accordance with chapter 29-31.1.