The bill establishes new definitions and regulations concerning the employment of unauthorized aliens in Kansas, making it illegal for employers to knowingly hire or refer such individuals. Key terms like "alien," "employee," "business entity," and "unauthorized alien" are defined, and enforcement mechanisms are put in place, allowing county or district attorneys and the attorney general to investigate and take civil action against violators. Starting July 1, 2025, employers will be required to use the E-Verify system to confirm the employment authorization of new hires and submit annual affidavits to the secretary of revenue to demonstrate compliance. Penalties for violations include the suspension of business licenses, with a rebuttable presumption of compliance for businesses participating in E-Verify.

Additionally, the bill modifies the Kansas tax code, particularly regarding income deductions and adjustments for individual taxpayers. It specifies that deductions for losses from business, rental real estate, and farming are allowed for taxable years beginning after December 31, 2012, and ending before January 1, 2017. The bill also introduces restrictions on deductions for wages paid to unauthorized aliens or independent contractors not verified through the E-Verify system. Other provisions address medical care expenses related to abortion, charitable contributions, and the treatment of retirement plan income, while allowing for the carryback of federal net operating losses and extending the time for claims for refunds or amended returns for certain tax years. The bill will take effect upon publication in the statute book.

Statutes affected:
As Introduced: 79-32
As introduced: 79-32