Business bloc takes aim at new law

A group of Arizona businesses is trying to persuade the public that a new immigration law, intended to punish companies that hire illegal immigrants, could kill jobs and wreck the state’s economy.

The group, called Wake Up Arizona!, launched a publicrelations campaign Tuesday saying it’s considering a ballot initiative to counter the law, considered one of the toughest in the nation. Starting next year, companies that knowingly hire undocumented workers will have their state business licenses suspended or revoked.

Mac Magruder, chairman of the group and owner of a chain of McDonald’s franchises, said the law will cripple local economies and cause job losses that will affect both illegal immigrants and legal residents.

“Once brown people lose their jobs, white people lose their jobs,” said Magruder. “This bill punishes the wrong people.”

Gov. Janet Napolitano signed the employer-sanctions bill two weeks ago. But the governor, who warned the bill could have unintended consequences, left open the possibility of calling a special legislative session this year to correct any problems.

Companies found violating the new law after it takes affect on Jan. 1 could have their businesses license suspended for up to 10 days. Repeat offenders would have their license permanently revoked.

Since its passage, The Arizona Contractors’ Association and Arizona Employers For Immigration Reform have filed a lawsuit challenging the law. They argue the state has overstepped its authority in attempting to regulate federal immigration laws.

The group represents a host of restaurant and service-oriented businesses such as Mc-Donald’s, Danny’s Family Carwash, Burger King, the Arizona Restaurant Association and the Arizona Diamondbacks. It has filed court documents in support of the lawsuit.

If the legal challenge fails, the group said it would take an initiative to the ballot next year in an effort to soften the law.

Other problems with the law include racial profiling, and the potential of frivolous complaints between competing businesses, the group warned.

Ray Arvizu, president and CEO of Arvizu Advertising & Promotions, a Hispanic marketing firm, said unfounded complaints could damage the reputation of a business.

“All someone has to do is file a complaint and you’ll spend a lot of time worrying about your reputation,” he said.

While most of the businesses in the state have opposed the Legislature’s efforts to crack down on employers, the East Valley Chambers of Commerce Alliance has been one of the few exceptions.

Charlie Deaton, president and CEO of the Mesa Chamber of Commerce, said the EVCCA supports the immigration reform bill because it would be better than the alternative.

Supporters of the crackdown on employers have threatened to put an even tougher measure on the ballot next year.

Polls show a majority of Arizona’s registered voters support sanctions on employers who hire illegal immigrants. “We didn’t want to see a bill that was drafted by the public. There’s no debate in that, no give and take,” he said. Wake Up Arizona! also is jumping into the election fray.

Next year, the group, which appears to have deep pockets because of its business connections, will be supporting legislative candidates who favor repealing the immigration law. Likewise, Magruder saved some of his sharpest criticisms for Rep. Russell Pearce, R-Mesa, the architect of the bill.

“Russell Pearce bullied the Legislature for six years to get this bill passed,” Magruder said. Pearce dismissed the accusation, saying businesses that follow the law have nothing to worry about. “When they’ve run out of arguments, when they have nothing left to say, they resort to name calling,” Pearce said.