R.I. Gen. Laws § 44-19-42 — Suppression of sales — Definitions and applicability

(a) As used in this section:
(1) “Automated sales suppression device,” also known as a “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 transaction data, transaction
reports, or any other electronic records of electronic cash registers and other point-of-sale
systems.
(2) “Electronic cash register” means a device that keeps a register, accounting, 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 any manner.
(3) “Phantom-ware” means a hidden programming option, whether preinstalled or installed
at a later time, embedded in the operating system of an electronic cash register or
hardwired into the electronic cash register that:
(i) Can be used to create a virtual second till; or
(ii) May eliminate or manipulate transaction records in any manner.
(4) “Remote data manipulation” means and includes, but is not limited to, sending, transmitting,
transporting, or receiving through any electronic means any and all transaction data
to a remote location, whether or not that location is within Rhode Island or outside
the state or the United States, for the purpose of manipulating and/or altering said
data in any way, whether or not the actual manipulation is performed manually or through
automated means.
(5) “Transaction data” includes: 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, debit, 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.
(6) “Transaction reports” means a report documenting, but not limited to the sales, the
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.
(b) A person shall not knowingly sell, purchase, install, transfer or possess an automated
sales suppression device or phantom-ware.
(c) A person shall not knowingly suppress sales by engaging in remote data manipulation,
either as the sender or the receiver of the information.
(d) Any person who violates subdivision (b) and/or (c) of this section shall be guilty
of a felony and, upon conviction, shall be subject to a fine not exceeding fifty thousand
dollars ($50,000) or imprisonment not exceeding five (5) years, or both.
(e) In addition, a person who violates subdivision (b) and/or (c) of this section shall
be liable to the state for:
(1) All taxes, interest, and penalties due as the result of the person’s use of an automated
sales suppression device or phantom-ware and/or remote data manipulation; and
(2) All profits associated with the person’s sale of an automated sales suppression device
or phantom-ware and/or remote data manipulation.
(f) An automated sales suppression device or phantom-ware and any device containing such
device or software shall be deemed contraband and shall be subject to seizure by the
tax administrator or by a law enforcement officer when directed to do so by the tax
administrator.
(g) Safe harbor. A person shall not be subject to prosecution under § 44-19-42, if by October 1, 2014, the person:
(1) Notifies the division of taxation of the person’s possession of an automated sales
suppression device;
(2) Provides any information requested by the division of taxation, including transaction
records, software specifications, encryption keys, passwords, and other data; and
(3) Corrects any underreported sales tax records and fully pays the division of taxation
any amounts previously owed.
(h) This section shall not be construed to limit the person’s civil or criminal liability
under any other provision of law.