Kansas Senate Bill SB196

Kansas 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/5/25

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

SB 196 would require most Kansas business entities and all public employers to register with and use the federal E-Verify system to confirm the work authorization of new employees beginning July 1, 2025. It makes it unlawful for an employer to knowingly hire, recruit, refer, contract with, or use an unauthorized alien for labor in Kansas, and it creates a complaint-and-enforcement process through county or district attorneys and the attorney general. The bill 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. A business entity found to have violated the hiring prohibition could be ordered to terminate unauthorized workers, file an affidavit of compliance, and face suspension of business licenses; repeated violations could lead to longer suspensions and, on a third violation, permanent license suspension and revocation of certain business registrations. The bill also requires public employers and contractors on public contracts to use E-Verify for new hires, and it requires businesses to retain E-Verify documentation for at least three years. In addition, it amends Kansas income tax law to disallow deductions for wages or remuneration paid to unauthorized aliens and for certain payments to independent contractors who are not registered with and using E-Verify, and it authorizes the Department of Revenue to audit affidavits and require add-backs to taxable income when misrepresentations are found.

Impact

SB 196 would substantially expand Kansas employment-verification and immigration-related compliance requirements by adding new duties for private employers, public employers, and public contractors. It would also create new civil enforcement authority for the attorney general and county or district attorneys, tie violations to business-license sanctions, and require coordination with federal immigration authorities. On the tax side, it would amend K.S.A. 79-32,117 to deny state income tax deductions for wages or remuneration paid to unauthorized aliens and for certain contractor payments where E-Verify compliance is lacking, thereby affecting business tax calculations and Department of Revenue enforcement.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the bill appears to be framed as a strong enforcement measure rather than a compromise proposal. Its structure suggests support for stricter employment verification and immigration compliance, with significant penalties and administrative requirements designed to ensure participation in E-Verify. Because no vote history or transcript excerpts are provided, there is no documented committee sentiment in the record supplied here beyond the bill’s clear policy direction.

Contention

The main points of contention are likely to be the bill’s immigration-enforcement approach, the breadth of its penalties, and the administrative burden on employers. Business entities may object to mandatory E-Verify registration, recordkeeping, audits, and the risk of license suspension for violations, while critics may also raise concerns about complaint-driven enforcement and the possibility of misuse despite the bill’s prohibition on race-based complaints. Supporters are likely to emphasize worksite compliance, deterrence of unauthorized employment, and the tax and licensing consequences as necessary enforcement tools. The bill also raises potential concerns for public contractors and smaller businesses that may face added compliance costs.