HELENA — A bill that would have prohibited state and local contracts from being awarded to businesses that hire illegal immigrants was tabled Tuesday by a House panel.

Opponents said there were too many potential problems with the measure by Sen. Jim Shockley, R-Victor, and suggested its proposed penalties were too harsh.

“I think we should hold the government a little more accountable for these types of things,” said Rep. Jesse O’Hara, R-Great Falls.

The House Judiciary Committee tabled the bill after it failed on a 10-7 vote.

Its demise leaves just two bills dealing with illegal immigration still alive this session. One, also spon-sored by Shockley, would deny state occupational licenses and license renewal to illegal immigrants. The other by Rep. Mike Jopek, D-Whitefish, would fine businesses $300 for each illegal hiring.

Shockley’s license bill passed the Senate in February and awaits a vote in the House Business and Labor Committee, while Jopek’s measure passed the House last month and will be heard in a Senate committee later this week.

Rep. Deb Kottel, D-Great Falls, questioned the disparity in penalties between Jopek’s bill, which calls for the $300 fine, and the public contract measure by Shockley.

Shockley’s bill allows a public agency to terminate a contract if the contractor or subcontractor know-ingly hired illegal immigrants. Violators could also be banned from bidding on public contracts for up to three years.

“This is a per se material breach of a contract that allows the state of Montana to back out of a contract with me,” Kottel said. “That’s a significant penalty.”

Supporters argued the state has the right to set higher standards for contractors paid with public money and said businesses should be held accountable for their hiring practices.

“My opinion is this comes down to the contractors and subcontractors,” said Rep. Bob Ebinger, D-Livingston. “If we don’t hold them accountable, we won’t ever solve the problem of illegal aliens.”

Immigration bills that failed this session include one that would have made it a felony for an illegal im-migrant to register to vote and another to ban employers from making deductions on state tax returns for wages paid to illegal workers. Another failed proposal would have banned illegal immigrants from receiv-ing public assistance.

The bill is Senate Bill 346.