The bill introduces new definitions and regulations concerning the employment of unauthorized aliens in Kansas, establishing terms such as "alien," "employee," "business entity," and "unauthorized alien." It prohibits employers from knowingly hiring or referring unauthorized aliens and imposes penalties, including the suspension of business licenses, for violations. Starting July 1, 2025, all business entities and public employers must register with and utilize the E-Verify system to confirm the employment authorization of new employees. Additionally, businesses are required to submit an annual affidavit to the secretary of revenue regarding their E-Verify participation and employee status, with the secretary granted authority to audit for compliance and impose penalties for misrepresentations.

The bill also modifies the Kansas tax code, particularly affecting the calculation of federal adjusted gross income for individual taxpayers. It allows deductions for various losses and expenses, including business, rental real estate, and self-employment taxes, applicable for specified taxable years. New regulations are introduced for deductions related to contributions to first-time home buyer and adoption savings accounts, as well as the deductibility of wages paid to unauthorized aliens and independent contractors not registered with the E-Verify system, effective for taxable years beginning after December 31, 2024. The bill aims to clarify tax reporting guidelines and ensure compliance with federal law while repealing K.S.A. 2024 Supp. 79-32,117, with the act taking effect upon publication in the statute book.

Statutes affected:
As introduced: 79-32