HillCo Partners' lobby team, led by Neal T. "Buddy" Jones, is working on behalf of Houston home builder Bob Perry and San Antonio grocery store magnate Charles Butt to alter a proposal that would permit law enforcement officers to inquire about the immigration status of people they detain, Jones' partner Bill Miller confirmed.

Miller declined to detail the changes Jones hopes to make in the legislation, saying only that they have "given language to members" to consider including in the proposal, which would carry financial penalties for cities that prohibit law enforcement from inquiring about immigration status.

The opposition of the business leaders demonstrates a schism in the Republican Party on the issue, designated a priority by Gov. Rick Perry. Bob Perry, no relation to the governor, is a prolific Republican contributor who has given $2.5 million to the governor's campaign coffers since 2001. HEB CEO Butt has made substantial contributions to members of both parties.

Friday, the House State Affairs Committee canceled hearings scheduled to pass the bill for the second day in a row, due to a lack of a quorum, as exhausted lawmakers returned home to tend to their businesses and families. A meeting has been scheduled for Monday, but House leaders did not rule out that a meeting could be called during the weekend if enough lawmakers return to Austin.

Alvarado comments

Neither Butt nor Perry could be reached for comment Friday.

Winell Herron, an H-E-B vice-president of public affairs and diversity, said the company opposes the sanctuary city legislation because "our desire is that our legislators consider the thoughts and recommendations of local law enforcement officials before enacting laws that impact them."

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She also said the company "complies with all immigration laws" and voluntarily uses the government's e-verify system when hiring employees. She said the company supports immigration reform.

Rep. Carol Alvarado, D-Houston, said Butt and Perry's opposition demonstrated growing concern in the Texas business community that the bill is "bad for Texas."

'It's almost inhumane'

"These are two prominent, very smart, very successful businessmen in Texas who understand what the implication would be, what the unintended consequences of the legislation would be," said Alvarado, who argued the bill would lead to racial profiling of Hispanics. "They realize, too, that it's almost inhumane. Anyone who is Latino could get pulled over and live in fear and that has consequences."

She said she sensed the House committee's inaction demonstrated "there may not be the political will to get this done."

"People realize the only reason we are going through this exercise is that this is something the governor wants. He is all over the country bragging about what Texas is doing and how conservative his agenda is," she said. "So, people are realizing we are going through this exercise to please somebody who is running for president."

Rep. Burt Solomons, R-Carrollton, who sponsored the measure, expressed frustration that the two businessmen are "trying to kill the bill" at such a late hour.

"It's good to know that my good friend, Buddy Jones, and his clients, Mr. Butt and Mr. Perry, decided after six months what they think a sanctuary cities bill ought to look like," he said. "I don't know where they've been for six months."

Asked why he thought Butt and Perry opposed the measure, Solomons said, "I think Charles Butt and Bob Perry are honorable men," adding he is aware that some members of Texas' business community rely heavily on the work of illegal immigrants.

"That's where I think we are," he said. "The business interests are probably concerned that something could pass and they are now deciding how to come up with a version that they think is more palatable."

Meanwhile, Republican political observers quietly acknowledge they are concerned the issue may backfire against the GOP by stirring up a mostly-Democratic Hispanic vote in the 2012 elections. Perry got a cool reception at his speech before the National Association of Latino Elected-Appointed Officials in San Antonio Thursday, where protestors picketed his speech because of the sanctuary city legislation. The governor did not mention the issue during his talk.

Governor still hopeful

"I thought it was hypocrisy at its best," said Alvarado. "I didn't recognize who he was because he was talking about the Latino community with such admiration and respect that it didn't seem like the same person that tried to implement sanctuary cities."

Perry spokeswoman Katherine Cesinger said the governor remained hopeful the Legislature will pass the bill before the special session ends Wednesday.

"This is an issue of security," she said. "We need to make sure that law enforcement has the discretion to ask about legal status during any encounter."

patti.hart@chron.com