Top Arizona business leaders teaming up to fight sanctions law
Associated Press
Tucson, Arizona | Published: 07.13.2007

PHOENIX - A coalition that includes some of Arizona's top business leaders is gearing up for a legal challenge to a new law punishing employers for hiring undocumented workers.

The group, Wake Up Arizona!, also plans to target state lawmakers who played a major role in pushing the new law, including House Speaker Jim Weiers, R-Phoenix, and Rep. Russell Pearce, R-Mesa.

The coalition includes well-known names such as Phoenix-area McDonald's franchiser Mac Magruder, Tucson car dealer Jim Click, former Phoenix Suns Chief Executive Jerry Colangelo and Meritage Homes Chief Executive Steve Hilton.

Magruder said the action is warranted to counter the new law, which can cost businesses their licenses, and a possible citizens initiative called the Legal Arizona Workers Act that imposes even tougher rules on employers.

Voters who appear to be highly supportive of a state crackdown on illegal immigrants will be a hard sell for the business leaders, said Don Goldwater, a former gubernatorial candidate leading the Legal Arizona Workers Act.

"The voter, I think, knows exactly what's going on with businesses who are trying scare tactics," Goldwater said.

The new law and proposed initiative have the potential to cost legitimate Americans their jobs because businesses will be afraid of losing their licenses, Magruder said. Some employers might just leave Arizona or opt not to come to the state.
"I don't believe the people of Arizona have any idea of the unintended consequences of the law our governor just signed," said Magruder, who owns seven McDonald's restaurants and is leading the effort. "Everyone in Arizona is affected by this law."

Business leaders who are joining Magruder's efforts say they're bearing the burden of the federal government's immigration failure. They say they're worried about unfounded complaints against companies that hire Latinos and increased identity theft among job applicants who need a valid Social Security number to pass muster using a new federal database check that all employers will be required to use.
They worry most, though, about the loss of their license to do business. The new law calls for a suspension on a first offense for "knowingly" or "intentionally" hiring an illegal worker and revocation for a second offense. With the ballot initiative, revocation would come on a first offense.
"I've got my whole life invested in this business," said Click, among the state's biggest donors to Republican candidates and causes. "What if my service manager turns his head, or fakes it (when hiring a worker)? I lose my license? Is that fair? I don't think so."

Goldwater noted that both his initiative and the state law give employers a defense if they use the federal database.

The database "protects businesses," he said, noting that sanctions against employers figure to hurt only those breaking the law.

As for talk of a campaign to oppose the initiative and weaken the new state law, Goldwater offered a challenge: "I hope they raise a lot of money. I hope they spend a lot of money. I hope they lick their wounds at the end of the day."

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