TOPEKA | Kansas lawmakers Thursday backed away from threats to pull the licenses of businesses that knowingly hire illegal immigrants.

Like the Senate before it, the House eliminated tough penalties for businesses from a bill designed to crack down on illegal immigration.

Instead, those who repeatedly hire illegal immigrants would face fines of up to $3,000 per illegal worker and the possibility of being held in contempt of court.

The step back from tougher penalties pleases the business community, religious groups and immigrant advocates, but is sure to anger citizens who urged tough enforcement of immigration law. The House endorsed the bill, SB 329, on an unrecorded preliminary vote Thursday night. A final vote is expected today.

The bill also:

* Creates new criminal penalties for employment identity fraud, voter fraud and exploitation of illegal immigrants

* Prohibits illegal immigrants from receiving many public benefits such as food stamps.

* Stiffens penalties for businesses that intentionally misclassify workers as contractors to avoid paying taxes and benefits.

An earlier provision to require all police to ask the citizenship of anyone they arrest was eliminated.

Supporters said the bill struck the right balance.

“It’s a tough but reasonable and effective response to the problem,” said Rep. Raj Goyle, a Wichita Democrat.

The Senate approved a similar bill Thursday morning. The vote was unanimous, but several senators said they wanted a more aggressive bill.  

One key difference: the House bill would, starting in 2011, require all new hires to be checked against the federal E-Verify database of legal workers. The bill would have the state’s Department of Labor run the checks unless businesses choose to do it themselves.

When introduced, the bills were much more aggressive. The authors of those proposals said the Legislature caved to powerful industry groups.

“We can’t go home and say we’ve passed meaningful immigration reform in this session,” said Rep. Lance Kinzer, an Olathe Republican who said the original bill had been “eviscerated.”