Employer sanctions law looms: Chief sponsor now says it applies to all employees

Yuma's business community is nervously awaiting the countdown to the new year and implementation of the state's new law cracking down on employing illegal immigrants.

But even as legal wrangling continues in an eleventh-hour attempt to stall enforcement of the law, it has cast a pall over the state's economy, say some observers.

"Absolutely ... it's already impacting the state economy before it goes into effect," said Sen. Amanda Aguirre, D-Yuma, who voted for the legislation that calls for harsh penalties against any employer found to have "knowingly" or "intentionally" hired an unauthorized worker, in an effort to stem the flood of illegal immigrants.

The law calls for suspending a business license for at least 10 days on the first offense and revoking it permanently for a second offense, effectively shutting down the business.

"I can't say how much," Aguirre said of the impact already being felt, but she believes there is a correlation between the looming law and downturn in the state's economy that is reflected in a projected $2 billion state budget deficit.

Aguirre said she's also been informed that school enrollment is down, likely because many workers have left the state or are avoiding Arizona, even though they may be legal.

That could have a devastating impact on agriculture and other businesses that rely on immigrants to fill unskilled, labor-intensive jobs, Aguirre said.

Harvest crews for the Yuma-area's high-value winter produce crops already are short by about 30 percent, said Doug Mellon, president of the Yuma Area Ag Council. That's a situation those in the industry fear will get worse come Jan. 1 when the law goes into effect, barring a last-minute injunction.

Confusing things even more was an announcement Thursday by Rep. Russell Pearce, R-Mesa, chief sponsor of the statute, that it applies to all employees, not just new hires as has been the general interpretation.

Pearce told The Associated Press Thursday that businesses will be penalized for knowingly employing any illegal immigrant after Jan. 1, regardless of when that person started working.

That came as a surprise to many.

Aguirre said her understanding in voting for the legislation was that it would apply only to new hires.

"The way I heard it interpreted, it just applies to new hires," said Ken Rosevear, executive director of the Yuma County Chamber of Commerce who sat on a legislative task force to address Employer Sanctions Bill HB2799.

The statute spells out that compliance is based on employers using E-Verify, a federal online database, to confirm workers' employment eligibility and the validity of their Social Security numbers, said Yuma County Attorney Jon Smith.

But the system is set up specifically to verify only new hires, according to several Web sites that provide information on E-Verify, and it is not meant to screen existing employees.

However, Smith said, the statute does use the word "employee" and not "new hire." "I think there could be a valid argument as stated by Pearce ... that it applies to any employee."

Rep. Lynne Pancrazi, D-Yuma, voted against the measure because she believes documentation already required by the federal government is sufficient. She said legislators already are looking at amending Pearce's bill, but she would much prefer the federal government reform immigration and come up with a viable guest worker program.

That's not apt to happen anytime soon, Joe Sigg, legislative liaison for the Arizona Farm Bureau, said, predicting there will be no comprehensive immigration reform in the next couple of years.

"We will continue to play by the rules as we understand them," Mellon said, explaining that he and most other growers already verify workers' eligibility through documents mandated by the federal government and he has begun using E-Verify. "I had a rule that if the paperwork wasn't in place, they wouldn't receive a payc heck."

What disturbs Mellon is that the statute shifts the burden of illegal immigration enforcement from the Border Patrol and Immigration and Customs Enforcement to employers.

"We call it the business death penalty," Rosevear said. "It looks like the state has hung out a sign saying 'Businesses not wanted.' The chamber does not endorse anyone being illegal but mistakes can happen.

"This doesn't come anywhere near fixing the problem. Fine them or issue sanctions, but putting them out of business isn't the answer. It just puts people out of work. I think it's a bad bill ... bad for business, bad for economic development and a bad precedent for the state."

Besides, Rosevear said, "there are tons of questions" about the statute even as it is due to be implemented.

U.S. District Judge Neil Wake has scheduled a hearing Tuesday on the request by challengers to block enforcement of the law until the courts can rule on legal merits of the statute they say is unconstitutional.

Meantime, the Yuma County Attorney's Office is gearing up to begin enforcement of the statute on Jan. 1.

"We don't know what will happen," said Smith. "We just keep rolling. As the law sits on the books, it is our duty to enforce it. We will try our best to make sure this thing makes sense."

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Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.