Kansas House Bill HB2066

Kansas 2025-2026 Regular Session

• Introduced: 1/22/25
• Refer: 1/23/25

Caption

Requiring business entities and public employers to register and use the e-verify program for employment purposes and prohibiting income tax deductions for wages and remuneration paid to unauthorized aliens.

Summary

HB 2066 would require most business entities in Kansas, as well as public employers and certain public contractors, to register with and use the federal E-Verify system to confirm the work authorization of new employees beginning July 1, 2025. The bill makes it unlawful to knowingly hire, recruit, refer, or contract with unauthorized aliens for work in Kansas, and it creates a complaint-and-investigation process led by county or district attorneys and the attorney general. It also directs the attorney general to develop a complaint form, allows anonymous complaints, and bars investigations based solely on race, color, or national origin. The bill establishes escalating penalties for violations. Courts could order termination of unauthorized workers, require affidavits of compliance, and suspend business licenses for first, second, and third violations, with the most serious violation leading to permanent suspension and possible revocation of business registration. The bill also requires public employers to use E-Verify for new hires and bars them from entering certain service contracts unless contractors participate in E-Verify. In addition, business entities must file annual affidavits with the secretary of revenue about their E-Verify compliance and workforce status, and the Department of Revenue may audit those filings. HB 2066 also changes Kansas income tax law by disallowing deductions for wages or remuneration paid to unauthorized aliens and for certain deductible business expenses paid to independent contractors who are not registered with and using E-Verify. If a business knowingly misrepresents facts in the required affidavit, it must add back those deductions in computing Kansas adjusted gross income, increasing state tax liability. The bill amends K.S.A. 79-32,117 to add these new tax modifications and repeals the existing version of that statute. The overall sentiment reflected in the bill materials is strongly enforcement-oriented and supportive of stricter employment verification and immigration-related compliance, but no committee transcript or vote record is available to show debate or opposition. The structure of the bill suggests a focus on deterrence through licensing sanctions, tax penalties, and mandatory use of federal verification tools, while also attempting to limit discriminatory enforcement by requiring federal confirmation of work authorization rather than independent state determinations.

Impact

The bill would significantly expand Kansas employment-verification and immigration-related enforcement by imposing E-Verify registration and use requirements on private business entities, public employers, and certain public contracts, and by authorizing civil enforcement by county/district attorneys and the attorney general. It would also create new compliance reporting obligations to the Department of Revenue and authorize audits and tax adjustments for noncompliance. The amended tax statute would deny Kansas deductions for wages paid to unauthorized aliens and certain contractor payments, thereby increasing state tax liability for affected businesses.

Sentiment

Available context shows no recorded committee transcript or vote history, so there is no direct evidence of floor or committee debate. Based on the bill text and caption, the measure appears to be framed positively by its sponsors as an enforcement and compliance bill aimed at preventing unauthorized employment and aligning state law with federal work-authorization rules. The absence of recorded opposition or amendments in the provided materials limits any conclusion about broader legislative sentiment.

Contention

The main points of contention likely center on immigration enforcement, employer compliance burdens, and the use of business-license suspensions and tax penalties as enforcement tools. Businesses may object to mandatory E-Verify participation, recordkeeping, audits, and the risk of losing licenses for violations, while supporters would likely emphasize deterrence and uniform verification of work authorization. Another likely issue is the complaint-driven enforcement process, including anonymous complaints and the potential for misuse, which the bill tries to address by prohibiting investigations based solely on race, color, or national origin and requiring federal verification before action is taken.