MS HB1040

Requires law enforcement officers to verify immigration status of any person arrested when reasonable suspicion exists that the person is unlawfully present in the United States, with verification through federal databases before release

Prohibits undocumented immigrants from entering into business transactions with the state, including applying for driver's licenses, business licenses, or state permits, with violations punishable as a felony carrying up to 5 years imprisonment and $5,000 fine

Authorizes legal residents to sue any state or local government entity that adopts policies limiting immigration law enforcement, with civil penalties of $500 to $5,000 per day the policy remains in effect

Mandates all Mississippi employers use the E-Verify system to verify employment authorization of newly hired workers, with violations resulting in contract cancellation and loss of business licenses for up to one year

Creates the Immigration Reimbursement Fund to collect civil penalties and authorizes law enforcement to transport verified undocumented individuals to federal custody facilities