The action follows similar moves by Georgia and Alabama, and a milder measure in North Carolina, as a number of states crack down on illegal immigration.

The governor is expected to sign the bill that will allow the state to revoke the business license of any employer who knowingly employs "unauthorized aliens."

By a 69-43 vote, the state House of Representatives agreed to Senate amendments that require employers to use the federal E-Verify database to check their employees' residency status.

The measure creates a grace period of one year for employers, during which penalties will be probationary. After that, employers can face temporary suspension of their business license for hiring illegal immigrants and reinstatement fees after those workers have been fired. On third offense, an employer's business license can be revoked.

Democrats argued that it will be impossible for every employer in South Carolina to use E-Verify because not everyone has access to the Internet. They also argued that immigration law falls to the federal government, not the states.

The bill also requires police to check the immigration status of any individual they suspect is in the country illegally after they have stopped that person for another reason.

It creates a new Illegal Immigration Enforcement Unit within state police to serve as the liaison between local officers and the federal government.

Several states have enacted immigration restrictions, even though the U.S. government considers it to be a federal issue.

North Carolina lawmakers three days ago passed a measure requiring businesses with 25 or more employees to check the citizenship status of job applicants on E-Verify.