Session of 2008
SENATE BILL No. 458
By Senators Palmer, Barnett, Huelskamp, Journey and Ostmeyer
AN ACT enacting the Kansas illegal immigration relief act; amending
K.S.A. 2007 Supp. 8-240, 8-1324, 79-32,120 and 79-32,138 and re-
pealing the existing sections; also repealing K.S.A. 2007 Supp. 76-
731a.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. As used in the Kansas illegal immigration relief act:
(a) ‘‘Alien’’ means any person who is not a citizen or national of the
United States, as described in Title 8, Section 1101 of the United States
Code, et seq., and amendments thereto.
(b) ‘‘Law enforcement officer’’ means any city, county and state police
officers, highway patrol, county sheriff and any other law enforcement
officers in the state.
(c) ‘‘Employee’’ has the meaning ascribed thereto in K.S.A. 44-313,
and amendments thereto.
(d) ‘‘Business entity’’ means any person or group of persons perform-
ing or engaging in any activity, enterprise, profession or occupation
for gain, benefit, advantage or livelihood, whether for profit or not-for-
profit. ‘‘Business entity’’ shall not include an individual employing
casual domestic labor. ‘‘Business entity’’ shall include, but not be
limited to:
(1) Self-employed individuals, business entities filing articles of in-
corporation pursuant to article 60 of chapter 17 of the Kansas Statutes
Annotated, and amendments thereto; a partnership pursuant to
chapter 56a of the Kansas Statutes Annotated, and amendments
thereto; a limited partnership pursuant to article 1a of chapter 56 of
the Kansas Statutes Annotated, and amendments thereto; a limited
liability company pursuant to article 76 of chapter 17 of the Kansas
Statutes Annotated, and amendments thereto; a foreign corporation, a
foreign limited partnership or a foreign limited liability company
authorized to transact business in this state; a business trust pursuant
to article 20 of chapter 17 of the Kansas Statutes Annotated, and
amendments thereto; and any business entity that registers with the
secretary of state.
(2) Any business entity that possesses a business license, permit, cer-
tificate, approval, registration, charter or similar form of authorization
issued by the state, any business entity that is exempt by law from ob-
taining such a business license, and any business entity that is
operating unlawfully without such a business license.
(e) ‘‘Identification document’’ has the meaning ascribed thereto in
K.S.A 21-3830, and amendments thereto.
(f) ‘‘Public employer’’ means every department, agency or instru-
mentality of the state or a political subdivision of the state.
(g) ‘‘Unauthorized alien’’ means an alien who is not authorized to
work in the United States, as defined in 8 U.S.C. 1324a(h)(3).
(h) ‘‘E-verify’’ means the electronic verification of employment au-
thorization program of the illegal immigration reform and immigrant
responsibility act of 1996, P.L. 104-208, division C, section 403(a); 8
U.S.C. 1324(a), and operated by the United States department of
homeland security, or its successor program.
(i) ‘‘Public employer’’ means any state agency, department, board or
commission or any municipality, as defined in K.S.A. 75-1117, and
amendments thereto, that employs one or more employees.
New Sec. 2. (a) It is unlawful for a business entity to knowingly hire,
recruit or refer for a fee for employment in the state of Kansas an unau-
thorized alien.
(b) Every business entity within the state of Kansas that employs one
or more employees shall register with and utilize e-verify to verify the
employment authorization of all new employees.
(c) All business entities shall be in compliance with this section on
and after January 1, 2009. The business entity shall retain all
documentation received in connection with its participation in e-
verify that verifies the employment authorization of every employee
verified through e-verify for at least three years after the termination
of the employment of the employee. This documentation shall be
provided to the department of revenue upon request.
(d) On and after January 1, 2009, public employers:
(1) Shall register with and utilize e-verify to verify the employment
authorization of all new employees; and (2) shall not enter into a
contract for the performance of services within this state unless the
contractor is registered with and utilizing e-verify to verify the
employment authorization of all new employees under the contractors
employment. The provision in this paragraph shall not apply to any
contracts entered into prior to January 1, 2009, even though
such contracts may involve the performance of labor within this state
after January 1, 2009.
(e) The provisions of this section may be enforced in the courts of
the state of Kansas by any district attorney, county attorney or by the
attorney general.
(f) On a finding of the first violation of this section by a business
entity, the court shall order the suspension of all licenses that are held
by such business entity for not less than 10 days and not more than 30
days.
(g) On a finding of the second violation of this section by a business
entity, the court shall order the suspension of all licenses that are held
by such business entity for not less than 90 days and not more than
one year.
(h) On a finding of the third violation of this section by a business
entity, the court shall order the permanent suspension of all licenses
that are held by such business entity as well as the revocation of the
business entity’s registration as a corporation in the state of Kansas, if
applicable.
(i) In enforcing the provisions of this section, no state, county or local
official shall attempt to independently determine whether an
individual is an unauthorized alien or an alien not lawfully present in
the United States. Such determination shall only be made by verifying
the alien’s immigration status with the federal government, pursuant
to 8 U.S.C. 1373(c).
(j) For the purposes of this section, when making a determination of
whether an employee is an unauthorized alien, a court shall only
consider the federal government’s determination pursuant to 8 U.S.C.
1373(c). The court shall take judicial notice of any verification of the
immigration status previously provided by the federal government.
The court may, and at the request of a party shall, request the federal
government to provide, in automated, documentary or testimonial
form, a new verification of the immigration status of the employee
pursuant to 8 U.S.C. 1373(c). The most recent determination of the
immigration status of an employee by the federal government shall
create a rebuttable presumption as to the employee’s immigration
status.
(k) For the purposes of this section, a business entity that has com-
plied in good faith with this section through registration and
participation in e-verify to confirm the employment authorization of
any employee in question shall create a rebuttable presumption that
the employer did not knowingly employ an unauthorized alien.
(l) For the purposes of this section, where a business entity has con-
tracted for the services of an independent contractor, no employment
relationship exists between the business entity and the independent
contractor or its employees.
New Sec. 3. (a) No payment or compensation or other remuneration,
including, but not limited to, wages, salaries, bonuses, benefits, in-kind
exchanges, expenses or any other economic benefit, paid to an
unauthorized alien employee, as defined in section 1, and amendments
thereto, may be claimed and allowed as a deductible business expense
for state income tax purposes. This section shall apply whether or not
an internal revenue service form 1099 or form W-2 is issued in
conjunction with such payments, compensation or other
remuneration.
(b) No payment or compensation or other remuneration, including,
but not limited to, wages, salaries, bonuses, benefits, in-kind
exchanges, expenses or any other economic benefit, paid to an
independent contractor may be claimed and allowed as a deductible
business expense for state income tax purposes if such independent
contractor is not registered with and utilizing e-verify to verify the
employment authorization of all new employees under such
ontractor’s employment.
(c) This section shall not apply to any business which is exempt from
compliance with federal employment verification procedures under
federal law which makes the employment of unauthorized aliens
unlawful.
(d) This section shall not apply to any individual hired by the taxpayer
prior to January 1, 2009.
(e) All employers shall submit an affidavit to the department of rev-
enue accompanying the annual tax return required under state law.
This affidavit shall be signed by the employer under penalty of perjury
and shall specifically state the following:
(1) Whether the employer utilized a business expense or business loss
deduction in determining federal adjusted gross income;
(2) whether the employer employed any employees or independent
contractors for the tax year in question and the number of such
employees or independent contractors;
(3) whether the employer is enrolled in and is actively participating
in e-verify;
(4) whether the employer has used e-verify to confirm the employ-
ment eligibility of every employee hired on or after January 1, 2009;
(5) whether the employer has confirmed that any independent con-
tractor employed by the employer is an independent contractor who
is registered with and utilizing e-verify to verify the employment
authorization of all new employees; and
(6) the employer’s identification number signifying the employer’s
enrollment in e-verify.
(f) The department of revenue may audit any employer who:
(1) Fails to timely submit the affidavit required under this section;
and
(2) the department has probable cause to believe is not complying
with this section.
(g) If the department of revenue determines that the employer has
knowingly made material misrepresentations of fact regarding
information contained in the affidavit required under this section, the
employer shall be required to add back business deductions taken in
determining such employer’s adjusted gross income used to calculate
the employer’s state tax liability, to the extent such deductions
constitute wages or remuneration paid to employees whose
employment authorization was not verified using e-verify.
New Sec. 4. (a) Employment identity fraud is willfully presenting to
an employer false or misleading identification documents for the
purpose of obtaining employment in the state of Kansas.
(b) Employment identity fraud is a severity level 8, nonperson felony.
(c) This section shall be part of and supplemental to the Kansas crim-
inal code.
New Sec. 5. (a) An alien who is not lawfully present in the United
States shall not be eligible to receive any state or local public benefit
from any state, county or local government entity in the state of
Kansas, except for state or local public benefits that are required to be
offered by 8 U.S.C. 1621(b).
(b) For the purposes of this section, ‘‘public benefit’’ includes: Any
grant, contract, loan or license provided by an agency of state or local
government; or any retirement, welfare, health, disability, housing,
post secondary education, food assistance or unemployment benefit
under which payments, assistance, credits, reduced rates, reduced
fees or resident tuition rates are provided or offered.
(c) In addition to providing proof of other eligibility requirements, at
the time of application for any public benefit, an applicant who is 18
years of age or older shall first establish that the applicant is a citizen
of the United States, an alien entitled to lawful permanent residence in
the United States or is an alien lawfully present in the United States.
(d) An applicant who is an alien shall not receive any public benefit
unless the alien’s lawful presence in the United States is first verified by
the federal government, pursuant to 8 U.S.C. 1373(c). State, county
and local agencies administering public benefits shall cooperate with
the United States department of homeland security in achieving
verification of aliens’ lawful presence in the United States, and shall
seek a memorandum of understanding with the United States
department of homeland security to participate in the systematic alien
verification for entitlements program operated by the United States
department of homeland security in order to meet the requirements of
this section.
New Sec. 6. (a) All state officials, agencies and personnel shall fully
comply with, and, to the full extent permitted by law, support the en-
forcement of federal law prohibiting the entry into, presence or
residence in the United States of aliens in violation of federal
immigration law.
(b) All law enforcement officers shall inquire into the citizenship and
immigration status of any person arrested for a violation of any state
law or municipal ordinance, regardless of the person’s national origin,
ethnicity or race. In all such cases where a person indicates that such
person is not a citizen or national of the United States, the law
enforcement officer shall verify with the federal government whether
the alien is law fully or unlawfully present in the United States,
pursuant to 8 U.S.C. 1373(c). This verification shall occur through
communication with the law enforcement support center, operated by
the bureau of immigration and customs enforcement of the United
States department of homeland security. If the alien is verified to be
unlawfully present in the United States, the law enforcement officer
shall cooperate with any request by federal immigration authorities to
detain the alien or transfer the alien to the custody of the federal
government.
(c) Pursuant to 8 U.S.C. 1373 and 8 U.S.C. 1644, no official or agent
of a state, county or city law enforcement agency may be prohibited or
in any way restricted from sending, receiving or maintaining, information
regarding the immigration status, lawful or unlawful, of any individual, or
exchanging such information with any other federal, state or local gov-
ernment entity. No state, county or city law enforcement agency may by
ordinance, resolution, official policy or informal policy, prevent, restrict
or discourage its officers from asking individuals their citizenship or im-
migration status.
(d) Any state, county or city law enforcement agency shall be deemed
to be in violation of this section if the attorney general determines that
such a violation has occurred. Any member of the Kansas legislature may
request such a determination by the attorney general. Any agency found
to be in violation of this section shall be ineligible to receive any state
funding until such agency can prove to the attorney general that the
agency is in compliance with this section.
New Sec. 7. Sections 1 through 6, and amendments thereto, shall be
known and maybe cited as the Kansas illegal immigration relief act.
Sec. 8. K.S.A. 2007 Supp. 8-240 is hereby amended to read as fol-
lows: 8-240. (a) Every application for an instruction permit shall be made
upon a form furnished by the division of vehicles and accompanied by a
fee of $2 for class A, B, C or M and $5 for all commercial classes. Every
other application shall be made upon a form furnished by the division
and accompanied by an examination fee of $3, unless a different fee is
required by K.S.A. 8-241, and amendments thereto, and by the proper
fee for the license for which the application is made. If the applicant is
not required to take an examination the examination fee shall not be
required. The examination shall consist of three tests, as follows: (1) Vi-
sion; (2) written; and (3) driving. If the applicant fails the vision test, the
applicant may have correction of vision made and take the vision test again
without any additional fee. If an applicant fails the written test, the ap-
plicant may take such test again upon the payment of an additional ex-
amination fee of $1.50. If an applicant fails the driving test, the applicant
may take such test again upon the payment of an additional examination
fee of $1.50. If an applicant fails to pass all three of the tests within a
period of six months from the date of original application and desires
to take additional tests, the applicant shall file an application for
reexamination upon a form furnished by the division, which shall be
accompanied by a reexamination fee of $3, except that any applicant
who fails to pass the written or driving portion of an examination four
times within a six month period, shall be required to wait a period of
six months from the date of the last failed examination before
additional examinations may be given. Upon the filing of such
application and the payment of such reexamination fee, the applicant
shall be entitled to reexamination in like manner and subject to the
additional fees and time limitation as provided for examination on an
original application. If the applicant passes the reexamination, the
applicant shall be issued the classified driver’s license for which
the applicant originally applied, which license shall be issued to expire
as if the applicant had passed the original examination.
(b) (1) For the purposes of obtaining any driver’s license or instruc-
tion permit, an applicant shall submit, with the application, proof of
age and proof of identity as the division may require. The applicant
also shall provide a photo identity document, except that a non-photo
identity document is acceptable if it includes both the applicant’s full
legal name and date of birth, and documentation showing the
applicant’s name, the applicant’s address of principal residence and
the applicant’s social security number. The applicant’s social security
number shall remain confidential and shall not be disclosed, except as
provided pursuant to K.S.A. 74-2012, and amendments thereto. If the
applicant does not have a social security number the applicant shall
provide proof of lawful presence and Kansas residency. The division
shall assign a distinguishing number to the license or permit.
(2) The division shall not issue any driver’s license or instruction per-
mit to any person who fails to provide proof that the person is lawfully
present in the United States. Before issuing a driver’s license or
instruction permit to a person, the division shall require valid
documentary evidence that the applicant: (A) Is a citizen or national of
the United States;
(B) is an alien lawfully admitted for permanent or temporary residence
in the United States; (C) has conditional permanent resident status in
the United States; (D) has an approved application for asylum in the
United States or has entered into the United States in refugee status;
(E) has a valid, unexpired nonimmigrant visa or nonimmigrant visa
status for entry into the United States; (F) has a pending application for
asylum in the United States; (G) has a pending or approved application
for temporary protected status in the United States; (H) has approved
deferred action status; or (I) has a pending application for adjustment
of status to that of an alien lawfully admitted for permanent residence
in the United States or conditional permanent resident status in the
United States.
(3) If an applicant provides evidence of lawful presence set out in
subsections (b)(2)(E) through (2)(I), or is an alien lawfully admitted for
temporary residence under subsection (b)(2)(B), the division may
only issue a driver’s license to the person under the following
conditions:
(A) A driver’s license issued pursuant to this subparagraph shall be
valid only during the period of time of the applicant’s authorized stay
in the United States or, if there is no definite end to the period of
authorized stay, a period of one year; (B) a drivers’ license issued
pursuant to this subparagraph shall clearly indicate that it is
temporary and shall state the date on which it expires; (C) no driver’s
license issued pursuant to this sub-paragraph shall be for a longer
period of time than the time period permitted by subsection (a) of
K.S.A. 8-247, and amendments thereto; and
(D) a driver’s license issued pursuant to this subparagraph may be re-
newed, subject at the time of renewal, to the same requirements and
conditions as set out in this subsection (b) for the issuance of the
original driver’s license.
(4) The division shall not issue any driver’s license or instruction per-
mit to any person who is not a resident of the state of Kansas, except as
provided in K.S.A. 8-2,148, and amendments thereto.
(5) The division shall not issue a driver’s license to a person holding
a driver’s license issued by another state without making reasonable
efforts to confirm that the person is terminating or has terminated the
driver’s license in the other state.
(6) The parent or guardian of an applicant under 16 years of age shall
sign the application for any driver’s license submitted by such applicant.
(c) Every application shall state the full legal name, date of birth,
gender and address of principal residence of the applicant, and briefly
describe the applicant, and shall state whether the applicant has been
licensed as a driver prior to such application, and, if so, when and by
what state or country. Such application shall state whether any such
license has ever been suspended or revoked, or whether an application
has ever been refused, and, if so, the date of and reason for such
suspension, revocation or refusal. In addition, applications for
commercial drivers’ licenses and instruction permits for commercial
licenses must include the following:
The applicant’s social security number; the person’s signature; the per-
son’s colored digital photograph; certifications, including those
required by 49 C.F.R. 383.71(a), effective January 1, 1991; a consent
to release driving record information; and, any other information
required by the division.
(d) When an application is received from a person previously licensed
in another jurisdiction, the division shall request a copy of the driver’s
record from the other jurisdiction. When received, the driver’s record
shall become a part of the driver’s record in this state with the same
force and effect as though entered on the driver’s record in this state in
the original instance
(e) When the division receives a request for a driver’s record from
another licensing jurisdiction the record shall be forwarded without
charge
(f) A fee shall be charged as follows:
(1) For a class C driver’s license issued to a person at least 21 years
of age, but less than 65 years of age, $12
(2) for a class C driver’s license issued to a person 65 years of age
older, $12;
(3) for a class M driver’s license issued to a person at least 21 years
of age, but less than 65 years of age, $12.50;
(4) for a class M driver’s license issued to a person 65 years of age or
older, $9;
(5) for a class A or B driver’s license issued to a person who is at least
21 years of age, but less than 65 years of age, $24;
(6) for a class A or B driver’s license issued to a person 65 years of
age or older, $16;
(7) for any class of commercial driver’s license issued to a person 21
years of age or older, $18; or
(8) for class A, B, C or M, or a farm permit, or any commercial driver’s
license issued to a person less than 21 years of age, $20.
A fee of $10 shall be charged for each commercial driver’s license
endorsement, except air brake endorsements which shall have no
charge.
A fee of $3 per year shall be charged for any renewal of a license issued
prior to the effective date of this act to a person less than 21 years of
age.
If one fails to make an original application or renewal application for a
driver’s license within the time required by law, or fails to make appli-
cation within 60 days after becoming a resident of Kansas, a penalty of
$1 shall be added to the fee charged for the driver’s license.
(g) Any person who possesses an identification card as provided in
K.S.A. 8-1324, and amendments thereto, shall surrender such identifi-
cation card to the division upon being issued a valid Kansas driver’s
license or upon reinstatement and return of a valid Kansas driver’s
license.
(h) The division shall require that any person applying for a driver’s
license submit to a mandatory facial image capture.
(i) The director of vehicles may issue a temporary driver’s license to
an applicant who cannot provide valid documentary evidence as
defined by subsection (b)(2), if the applicant provides compelling
evidence proving current lawful presence. Any temporary license
issued pursuant to this subsection shall be valid for one year.
(j) The division shall require that any person applying for a driver’s
license who provides proof by valid documentary evidence that the
person is a citizen of the United States sign an affidavit stating the
following:
‘‘I hereby declare that I am a citizen of the United States. I understand
that falsely declaring United States citizenship is a federal crime
under 18 .S.C. 1015(e); and I understand that swearing falsely on an
affidavit is a crime pursuant to K.S.A. 8-261a, and amendments
thereto.’’
(k) No driver’s license shall be issued to any alien until the alien has
been verified by the United States department of homeland security to
be lawfully present in the United States, pursuant to 8 U.S.C. 1373(c).
Such verification shall occur through the systematic alien verification
for entitlements program operated by the United States department
of homeland security.
Sec. 9. K.S.A. 2007 Supp. 8-1324 is hereby amended to read as fol-
lows: 8-1324. (a) Any resident who does not hold a current valid
Kansas driver’s license may make application to the division of
vehicles and be ssued one identification card.
(b) For the purpose of obtaining an identification card, an applicant
shall submit, with the application, proof of age, proof of identity and
proof of lawful presence. An applicant shall submit with the
application a photo identity document, except that a non-photo
identity document is acceptable if it includes both the applicant’s full
legal name and date of birth, and documentation showing the
applicant’s name, the applicant’s address of principal residence and
the applicant’s social security account number.
The applicant’s social security number shall remain confidential and
shall not be disclosed, except as provided pursuant to K.S.A. 74-2012,
and amendments thereto. If the applicant does not have a social
security number, the applicant shall provide proof of lawful presence
and Kansas residency. The division shall assign a distinguishing
number to the identification card. Before issuing an identification card
to a person, the division shall make reasonable efforts to verify with
the issuing agency the issuance, validity and completeness of each
document required to be presented by the applicant to prove age,
identity and lawful presence.
(c) The division shall not issue an identification card to any person
who fails to provide proof that the person is lawfully present in the
United States. If an applicant provides evidence of lawful presence as
set out in subsections (b)(2)(E) through (2)(I) of K.S.A. 8-240, and
amendments thereto, or is an alien lawfully admitted for temporary
residence under subsection (b)(2)(B) of K.S.A. 8-240, and amendments
thereto, the division may only issue a temporary identification card to
the person under the following conditions: (A) A temporary
identification card issued pursuant to this subparagraph shall be valid
only during the period of time of the applicant’s authorized stay in the
United States or, if there is no definite end to the period of authorized
stay, a period of one year; (B) a temporary identification card issued
pursuant to this subparagraph shall clearly indicate that it is
temporary and shall state the date upon which it expires; (C)
no temporary identification card issued pursuant to this
subparagraph shall be for a longer period of time than the time period
permitted by K.S.A. 8-1325, and amendments thereto; and (D) a tem-
porary identification card issued pursuant to this subparagraph may
be renewed, subject at the time of renewal, to the same requirements
and conditions set forth in this subsection (c) for the issuance of the
original temporary identification card.
(d) The division shall not issue an identification card to any person
who holds a current valid Kansas driver’s license unless such driver’s
license has been physically surrendered pursuant to the provisions of
subsection (e) of K.S.A. 8-1002, and amendments thereto.
(e) The division shall refuse to issue an identification card to a person
holding a driver’s license or identification card issued by another state
without confirmation that the person is terminating or has terminated
the license or identification card.
(f) The parent or guardian of an applicant under 16 years of age shall
sign the application for an identification card submitted by such applicant.
(g) The division shall require payment of a fee of $14 at the time
application for an identification card is made, except that persons who
are 65 or more years of age or who are handicapped, as defined in
K.S.A.8-1,124, and amendments thereto, shall be required to pay a fee
of only 10.
(h) All Kansas identification cards shall have physical security features
designed to prevent tampering, counterfeiting or duplication for
fraudulent purposes.
(i) For the purposes of K.S.A. 8-1324 through 8-1328, and amend-
ments thereto, a person shall be deemed to be a resident of the state if:
(1) The person owns, leases or rents a place of domicile in this state;
(2) the person engages in a trade, business or profession in this state;
(3) the person is registered to vote in this state;
(4) the person enrolls the person’s child in a school in this state; or
(5) the person registers the person’s motor vehicle in this state.
(j) The division shall require that any person applying for an identi-
fication card submit to a mandatory facial image capture.
(k) The director of vehicles may issue a temporary identification card
to an applicant who cannot provide valid documentary evidence as
defined by subsection (c), if the applicant provides compelling
evidence roving current lawful presence. Any temporary
identification card issued pursuant to this subparagraph shall be valid
for one year.
(l) Upon payment of the required fee, the division shall issue to every
applicant qualifying under the provisions of this act an identification
card.
Such identification card shall bear a distinguishing number assigned to
the cardholder, the full legal name, date of birth, address of principal
residence, a brief description of the cardholder, a colored digital
photograph of the cardholder, and a facsimile of the signature of the
cardholder.
An identification card which does not contain the address of principal
residence of the cardholder as required may be issued to persons who
are program participants pursuant to K.S.A. 2007 Supp. 75-455, and
amendments thereto.
(m) The division shall require that any person applying for an iden-
tification card who provides proof by valid documentary evidence
that the person is a citizen of the United States sign an affidavit
stating the following: ‘‘I hereby declare that I am a citizen of the
United States. I understand that falsely declaring United States
citizenship is a federal crime under 18 U.S.C. 1015(e); and I
understand that swearing falsely on an affidavit is a crime pursuant
to K.S.A. 8-261a, and amendments thereto.’’
(n) No identification card shall be issued to any alien until the alien
has been verified by the United States department of homeland
security to be lawfully present in the United States, pursuant to 8
U.S.C. 1373(c). Such verification shall occur through the systematic
alien verification for entitlements program operated by the United
States department of homeland security.
Sec. 10. K.S.A. 2007 Supp. 79-32,120 is hereby amended to read as
follows: 79-32,120. (a) If federal taxable income of an individual is
determined by itemizing deductions from such individual’s federal
adjusted gross income, such individual may elect to deduct the Kansas
itemized deduction in lieu of the Kansas standard deduction. The
Kansas itemized deduction of an individual means the total amount of
deductions from federal adjusted gross income, other than federal
deductions for personal exemptions, as provided in the federal
internal revenue code with the modifications specified in this section.
No deduction shall be allowed for payment, compensation or other
economic benefit disallowed by section 3, and amendments thereto.
(b) The total amount of deductions from federal adjusted gross in-
come shall be reduced by the total amount of income taxes imposed
by or paid to this state or any other taxing jurisdiction to the extent
that the same are deducted in determining the federal itemized
deductions and by the amount of all depreciation deductions claimed
for any real or tangible personal property upon which the deduction
allowed by K.S.A. 007 Supp. 79-32,221, 79-32,227, 79-32,232, 79-
32,237, 79-32,249, 79-32,250, 79-32,255 or 79-32,256, and
amendments thereto, is or has been claimed.
Sec. 11. K.S.A. 2007 Supp. 79-32,138 is hereby amended to read as
follows: 79-32,138. (a) Kansas taxable income of a corporation taxable
under this act shall be the corporation’s federal taxable income for the
taxable year with the modifications specified in this section.
(b) There shall be added to federal taxable income: (i) The same
modifications as are set forth in subsection (b) of K.S.A. 79-32,117,
and amendments thereto, with respect to resident individuals.
(ii) The amount of all depreciation deductions claimed for any prop-
erty upon which the deduction allowed by K.S.A. 2007 Supp. 79-
32,221, 79-32,227, 79-32,232, 79-32,237, 79-32,249, 79-32,250,
79-32,255 or 79-32,256, and amendments thereto, is claimed.
(iii) The amount of any charitable contribution deduction claimed for
any contribution or gift to or for the use of any racially segregated
educational institution.
(iv) The amount of the payments, compensation or other economic
benefit disallowed by section 3, and amendments thereto.
(c) There shall be subtracted from federal taxable income: (i) The
same modifications as are set forth in subsection (c) of K.S.A. 79-
32,117, and amendments thereto, with respect to resident individuals.
(ii) The federal income tax liability for any taxable year commencing
prior to December 31, 1971, for which a Kansas return was filed after
reduction for all credits thereon, except credits for payments on
estimates of federal income tax, credits for gasoline and lubricating oil
tax, and for foreign tax credits if, on the Kansas income tax return for
such prior year, the federal income tax deduction was computed on
the basis of the federal income tax paid in such prior year, rather than
as accrued. Notwithstanding the foregoing, the deduction for federal
income tax liability for any year shall not exceed that portion of the
total federal income tax liability for such year which bears the same
ratio to the total federal income tax liability for such year as the
Kansas taxable income, as computed before any deductions for federal
income taxes and after application of subsections (d) and (e) of this
section as existing for such year, bears to the federal taxable income
for the same year.
(iii) An amount for the amortization deduction allowed pursuant to
K.S.A. 2007 Supp. 79-32,221, 79-32,227, 79-32,232, 79-32,237, 79-
32,249, 79-32,250, 79-32,255 or 79-32,256, and amendments
thereto.
(iv) For all taxable years commencing after December 31, 1987, the
amount included in federal taxable income pursuant to the provisions
of section 78 of the internal revenue code.
(v) For all taxable years commencing after December 31, 1987, 80%
of dividends from corporations incorporated outside of the United
States or the District of Columbia which are included in federal taxable
income.
(d) If any corporation derives all of its income from sources within
Kansas in any taxable year commencing after December 31, 1979, its
Kansas taxable income shall be the sum resulting after application of
subsections (a) through (c) hereof. Otherwise, such corporation’s Kansas taxable income in any such taxable year, after excluding any
refunds of federal income tax and before the deduction of federal
income taxes provided by subsection (c)(ii) shall be allocated as
provided in K.S.A. 79-3271 to K.S.A. 79-3293, inclusive, and
amendments thereto, plus any refund of federal income tax as
determined under paragraph (iv) of subsection b) of K.S.A. 79-32,117,
and amendments thereto, and minus the deduction for federal income
taxes as provided by subsection (c)(ii) shall be such corporation’s
Kansas taxable income.
(e) A corporation may make an election with respect to its first taxable
year commencing after December 31, 1982, whereby no addition
modifications as provided for in subsection (b)(ii) of K.S.A. 79-32,138
and subtraction modifications as provided for in subsection (c)(iii) of
K.S.A. 79-32,138, as those subsections existed prior to their
amendment by this act, shall be required to be made for such taxable
year.
New Sec. 12. If any provisions of this act or the application thereof
to any person or circumstances is held invalid, the invalidity shall not
affect other provisions or applications of the act which can be given
effect without the invalid provisions or application, and to this end the
provisions of this act are severable.
Sec. 13. K.S.A. 2007 Supp. 8-240, 8-1324, 76-731a, 79-32,120 and
79-32,138 are hereby repealed.
Sec. 14. This act shall take effect and be in force from and after its
publication in the statute book.
