INDIANAPOLIS - A bill to penalize Indiana businesses that employ illegal immigrants cleared the state Senate late Tuesday.
Proponents hailed the bill as a move to support national sovereignty and the rule of law, while opponents argued it would be punitive on businesses and pose hardships for the children of immigrants. Senate Bill 580, the "three strikes" immigration bill, passed 37-13.
company found to have employed undocumented aliens would face increasing penalties, up to losing its license to do business in Indiana after a third immigration violation.
It would be a legal defense from prosecution if a business used a federal database, E-Verify, to check an employee's eligibility status. Employers who participate in a federal program for immigrant farm workers also would have a legal defense under the bill.
Supporters said with unemployment soaring, it's critical to not deprive Hoosiers of in-state jobs, and that's why Indiana needs to act in lieu of federal immigration enforcement.
Opponents said immigration is a federal issue, not one the state should deal with.
Sen. Gary Dillon, R-Columbia City, said he worried the bill would force families apart where the parents are illegal aliens but their children were born here and are U.S. citizens. Passing the bill is "throwing these little kids under the bus," Dillon said.
Voting yes the bill were Sens. Vaneta Becker, R-Evansville, Bob Deig, D-Mount Vernon, John Waterman, R-Shelburn, and Richard Young, D-Milltown. Voting no was Sen. Lindel Hume, D-Princeton. The bill now moves to the Democratic-controlled House.
Lawmakers worked late into the night Tuesday to meet a deadline to amend bills on second reading. Tuesday at midnight is the third-reading deadline to vote up-or-down on House bills to send to the Senate, and to send Senate bills to the House. When the two chambers trade bills, it will mark the mid-point of the Legislature's 2009 session.
In other legislative action Tuesday:
More than 3,000 elected township board members statewide would be eliminated, and township budgets would get reviewed by the county council, under a bill the Senate passed.
Senate Bill 512 began as one of the Kernan-Shepard proposals; and in its original form would have eliminated township trustees and transferred their duties to county government. But the bill was modified heavily.
Scaling back
The scaled-down version that passed 28-22 Tuesday would leave township trustees untouched. Township advisory boards would be eliminated.
Meanwhile, township trustee offices that carry surpluses in excess of 10 percent of their overall budgets would get reviewed by the county council. That provision was included because of media reports that statewide, townships are running surpluses of more than $200 million.
The bill also includes an anti-nepotism rule barring trustees from employing their relatives as township employees, starting in 2011.
Marion County would be excluded from the bill, but it would apply to Indiana's other 91 counties.
Bill supporters said township advisory boards are irrelevant and an unnecessary taxpayer expense. Opponents said the bill is just another step in a campaign toward abolishing township government.
An attempt to clean up unscrupulous practices in the mortgage industry passed Tuesday in the Indiana House, 79-17.
Drafted by Rep. Gail Riecken, D-Evansville, House Bill 1176 would prohibit lenders from offering loans to a borrowers who do not have the ability to repay them. Prepayment penalties on adjustable-rate mortgages that discourage homeowners from refinancing also would be prohibited.
And instead of home buyers being surprised at the closing table, closing documents would have to be provided at least one day in advance - and borrowers could delay or back out if the agreement is changed, the bill says.
Senators voted to remove obstacles to a planned coal-to-gas plant that potentially would bring a $2 billion investment to Spencer County. Senate Bill 423, which passed unanimously, would have a state agency, the Indiana Finance Authority, act as a go-between for the plant and utility companies.
Bill supporters say it will clear the path for the plant's developer, Indiana Gasification LLC, to line up federal loan guarantees that would allow it secure financing and begin construction of the plant near Rockport.
The Senate unanimously passed a bill to strengthen open records laws. Senate Bill 232 requires public agencies to give interested members of the public a 48-hour notice of meetings by e-mail, if requested, or by posting the meeting notice on the agency's Web site. The bill also would slap fines on public officials or agencies who flout the law and refuse to release public records to the public. They could face fines of between $100 and $500 for wrongful nondisclosure.
Evansville Courier & Press correspondent Eric Bradner contributed to this report.