State would suspend, possibly revoke, licenses and permits of bosses who employ illegal immigrants.

The Associated Press

PHOENIX - A bill to lift state licenses and permits of employers who hire illegal immigrants was endorsed by a House committee despite being criticized by business groups as a virtual death sentence.

The Commerce Committee yesterday voted 8-4 for the bill, whose supporters called it a way to help level the playing field for businesses whose competitors hire illegal immigrants to cut costs.

"These people benefit from cheap labor," said Rep. Russell Pearce, R-Mesa. "They're suppressing the wage."

Under the bill, the attorney general would be required to suspend or revoke licenses, certifications, permits and charters issued by the state to a person or company sanctioned by a federal agency as an employer who hired or employed illegal immigrants.

Federal law requires employers to verify the employment eligibility of all workers hired to work in the United States.

Under the state legislation, the employer's license would be suspended for six months after an initial offense. A second offense would rate a revocation.

Attorney David Selden, chairman of the Arizona Chamber of Commerce's employee relations committee, said lifting licenses for six months would kill many businesses.

"It would give federal bureaucrats death penalty powers over Arizona businesses," Selden said. "Any regulated profession will have its existence at risk under this bill."