http://www.azcentral.com/news/articles/0703employer-sanctions0703.html

"...The penalty for violators: the suspension of a business license on the first violation and permanent revocation on a second..."

yeah theeere we go! that's what I'm lookin for!

Now the real question is if the law can stick - seeing how the state is wandering dangerously close to making laws that deal with something the FEDs should be doing.