The Los Angeles Times reports that the document is part of the ongoing effort to eradicate any remanents of the outlawed Ba'ath party.
At issue is the sentence, "I will obey the laws of Iraq and all proclamations, orders and instructions of the Coalition Provisional Authority," a vow some in Hillah see as a direct conflict with their religious and national identities.
Hillah residents marched in protest earlier this week after government employees were told they wouldn't be paid unless they signed the document.
Complicating the issue is a fatwa issued by Shi'ite clerics calling for followers not to sign.
In an effort to compromise, community leaders requested the addition of a clause to protect "the interests of the Iraqi people."
Thus far, the civil administration seems cool to the idea, asserting that troublemakers seeking conflict are behind the issue.
YellowTimes.org correspondent Lisa Ashkenaz Croke drafted this report.