YELLOW SHEET REPORT by Arizona Capitol Reports, LLC unless otherwise credited. All rights reserved. Thursday, April 27, 2017

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1 YELLOW SHEET REPORT by Arizona Capitol Reports, LLC unless otherwise credited. All rights reserved. Thursday, April 27, 2017 NEWS NOTES AND GOSSIP STAY OFF OUR TURF Ducey chief of staff Kirk Adams waded into the ongoing spat between Central Arizona Project and the Dept of Water Resources, telling CAP that it needs to respect the state s authority over water issues. In a letter sent on Tuesday to CAP manager Ted Cooke, which was also signed by ADWR Director Tom Buschatzke, Adams said he was dismayed that the water delivery entity had for the second time claimed sovereign immunity in a lawsuit, this time against a complaint filed by the Ak-Chin Indian Community alleging that CAP won t give the tribe its full allotment of water. In an earlier, separate lawsuit, CAP claimed sovereign immunity as an arm of the state as a defense against allegations from a former employee that it violated the Family Medical Leave Act. As part of the employment lawsuit, CAP said the sovereign immunity claim would only apply to a small part of the FMLA law. But the ADWR took issue with that claim, saying CAP was overstating its role in managing and securing water for the state. In his letter, Adams noted that CAP had previously argued that its sovereign immunity claim in the employment lawsuit applied only to provisions of the FMLA. It s clear what CAP is trying to do, Adams and Buschatzke wrote. CAP s actions indicate an intentional policy choice designed to expand its authority in a manner that conflicts with the role of the State and ADWR in managing and securing Colorado River water supplies, they wrote. The state fundamentally opposes the claims that CAP is an arm of the state and should be granted sovereign immunity, the letter says. CAP should amend its filing in the Ak-Chin case to take out any claims of sovereign immunity, Adams and Buschatzke wrote. WE DIDN T MEAN TO IMPLY ANYTHING In a response to Adams and Buschatzke, Cooke said CAP has no intention of defending itself in the Ak- Chin lawsuit by claiming its own sovereign immunity. Instead, the filing was intended to claim the United States has sovereign immunity from the lawsuit by the Ak-Chin, and that because the federal government owns CAP, it is a necessary party to the lawsuit. CAP has no issue with amending its brief to clarify the intended meaning of the sovereign immunity defense, Cooke wrote. The amended brief will say that the United States sovereign immunity bars the Ak-Chin complaint because the Ak-Chin didn t add the US to the legal action, so the community can t get the relief it requested in the lawsuit, Cooke wrote in his letter. Copies of Adams and Cooke s letters can be viewed in the documents section. THINK THIS WILL COME UP IN NEXT YEAR S PRIMARY? Douglas s GOP primary opponents wasted little time in using her proposal to extend Prop 301 and increase its sales tax to a full cent against her. In a news release, Frank Riggs called the proposal the wrong message by the wrong messenger. He called her plan an obvious ploy to boost her re-election chances. Superintendent Douglas tenure has been nothing short of a disaster, characterized by incompetency, mismanagement and lawsuits. As a result, she has little credibility with her colleagues in state government and no ability to persuade anyone to take her proposals seriously, said Riggs, who also criticized Douglas Page 1 of 12 April 27, 2017

2 YELLOW SHEET REPORT April 27, 2017 Page 2 for racking up legal fees in her lawsuit against the State Bd of Education and for being largely silent and invisible during last year s Prop 123 campaign. Meanwhile, Tracy Livingston roasted Douglas on Twitter, casting the proposed sales tax increase as the most recent of several transgressions by the superintendent. Douglas kept & renamed #CommonCore, opposes #schoolchoice, now calling for tax increases. She is clearly running in the wrong primary, Livingston tweeted. MAYBE IT WASN T A MODERN ENOUGH PROP 301 The Ninth Floor today emphasized that Ducey is on the record as supporting an extension of Prop 301, but signaled that he s not necessarily enamored with Douglas s proposal. But it needs to be done in a way that makes sense, is good public policy, and most importantly, can actually win support from legislators and the voters, Ducey spokesman Daniel Scarpinato said in an . HAPPY IN AZ Though a source close to the Trump administration said the White House is actively considering Clint Bolick and John Lopez for a spot on the Ninth Circuit, the two Arizona Supreme Court justices said they re not candidates for the position. In a statement provided to our reporter by the court, Bolick said he and Lopez were contacted early in the process about the Ninth Circuit position, but both declined to apply. Governor Ducey has given both of us an opportunity to serve the people of Arizona and decide cases of great importance. I love my work and my colleagues and I am glad there are other outstanding candidates for the Ninth Circuit, Bolick said. Lopez emphasized that he was only recently sworn in, and said he s enjoying the opportunity to serve on the Arizona Supreme Court. I also intend to fulfill my responsibilities on the state s highest court, Lopez said. The source close to the Trump administration said elections attorney Kory Langhofer is also under consideration by the White House, while Flake and McCain have recommended Assistant US Attorney Dominic Lanza, US Magistrate Judge Bridget Bade, Arizona Supreme Court Justice Ann Timmer and Langhofer, with Lanza as their top pick. PAY AS YOU GO The Clean Elections Commission voted unanimously today to help the secretary of state s office pay for the development of Reagan s new online campaign finance system, with an added provision that the commission can make its payments on a pro rata basis if certain benchmarks aren t met on time. Under the interagency services agreement that the commission approved, Clean Elections will pay $200,000 for the development of Reagan s See the Money campaign finance website. In exchange, the website will house all reports required by Clean Elections, including the controversial independent expenditure spending notifications that Reagan has repeatedly said Clean Elections lacks the authority to demand. Several commissioners expressed concerns that Clean Elections would be obligated to make the full $150,000 payment that the ISA requires in October, which represents 75 percent of the commission s up-front development costs, even if the secretary of state s office hasn t met all the required benchmarks listed in the agreement. So, then we only have 25 percent of the payment left for when the entire thing is completed, which I think gives us limited leverage to make sure that the entire thing is completed, Independent Commissioner Mark Kimble said. Assistant Secretary of State Lee Miller said Reagan s office would commit to only requesting payment for actual work that is done, and not seeking the remainder of the payment from Clean Elections until the work is completed. He said he believes the contract already allowed for such partial payments, but later expressed support for the proposed new provision, with his only request being that it includes language stating that the payments would be based on the work that has actually been delivered. Democratic Commissioner Steve Titla said he would prefer to schedule another special meeting to vote on the ISA after Collins updated the language, but said he would defer to the rest of his colleagues, who supported updating the agreement at today s meeting and didn t believe there is a need to schedule another. A copy of the ISA can be viewed in the documents section. Page 2 of 12 April 27, 2017

3 YELLOW SHEET REPORT April 27, 2017 Page 3 A CAUTIONARY EXAMPLE FOR CLEAN ELECTIONS The Clean Elections commissioners insistence on ensuring that they won t have to pay for unfinished work comes on the heels of revelations that Reagan spent about $500,000 on a nonfunctional website, which See the Money is meant to replace. Republican Commissioner Amy Chan, a former state elections director under Ken Bennett, said she supports the ISA, but made a point of emphasizing that it is only necessary because of Reagan s snafu with the previous website plans. I feel like this is something that has come out of the secretary s need, in my mind, to kind of bail her out of a situation that she s in, having spent half a million dollars on what should have been, I think, the system, Chan said. And we re thankfully situated where can help her so that the voters of Arizona are able to be the beneficiaries of this new system. Kimble invoked the botched website as a source of concern during the discussion of whether Clean Elections would be on the hook for payments to Reagan s office for incomplete work. We want to make sure we re getting a product they said they would produce, not just that they re paying people to do it, because that was kind of the problem with the last undertaking, even though we weren t involved in it. They paid a lot of money for it but didn t have the product, Kimble said. THERE S BIGGER FISH TO FRY The organizers of a planned citizen referendum campaign against the anti-citizen initiative measures may let the per-signature payment ban stand and focus only on the new law imposing strict compliance on initiatives. According to a source familiar with the plans, organizers are still trying to decide whether to include Laws 2017, Chapter 52 (H2404: initiatives; circulators; signature collection; contests) in their plans, or focus solely on Laws 2017, Chapter 151 (H2244: initiative petitions; standard of review). If S1236 (initiatives & referendum; circulators; prop 105) passes and is signed by the governor, the referendum campaign is likely to include that law, as well. ROOM FOR ONE MORE The potential referendum campaign against H2404 raises the possibility of an interesting and confusing scenario: two campaigns circulating separate petitions against the same bill. Libertarian activists Mike Shipley and Kim Ruff took out a referendum petition against H2404 in late March, and have begun collecting signatures to refer the law to the November 2018 ballot, but their campaign may not be the only referendum against H2404. Reagan spokesman Matt Roberts said two separate groups can pull their own referendum petitions, and they would be separate efforts with separate serial numbers. The signatures from the two sets of petitions couldn t be pooled, and because they would technically be separate referenda, Roberts said he believes voters would likely be able to sign both. NO TIME LIKE THE PRESENT The Arizona Constitution limits the signature-gathering period for citizen referenda to 90 days after the Legislature adjourns, but that doesn t necessarily mean referendum campaigns have to wait until sine die to get to work. Reagan spokesman Matt Roberts noted that the Arizona Constitution and state statute are silent on when referendum campaigns can begin collecting signatures. As such, Roberts said the practice of the secretary of state s office is to inform campaigns that the law isn t clear and that it can t provide any legal advice on how to proceed. However, attorney Joe Kanefield, who served as state election director during Brewer s tenure as secretary of state, said his reading of the law is that referendum campaigns can begin collecting signatures as soon as a bill is chaptered. The Constitution doesn t say otherwise and unlike the initiative circulation period... the Legislature has not limited the referendum circulation period, Kanefield told our reporter via . POLL PITCHES MYSTERY HEALTH CARE INITIATIVES A Las Vegas-based polling firm called Precision Opinion recently surveyed Arizonans on two theoretical Page 3 of 12 April 27, 2017

4 YELLOW SHEET REPORT April 27, 2017 Page 4 ballot measures on health care policy that would enshrine provisions of Obamacare in state law. According to a source who was polled, Precision Opinion asked about a proposed initiative that would make it illegal under state law for insurers to discriminate against people with preexisting conditions, a popular provision of the Affordable Care Act. The second theoretical initiative would freeze AHCCCS coverage at Jan. 1, 2017 levels, preventing a future rollback of the 2013 law that expanded Medicaid coverage to all Arizonans earning up to 133 percent of the federal poverty level. The pollster tested both positive and negative messaging for the proposals. For the pre-existing conditions proposal, the pollster said the measure would increase insurance premiums, prohibit future changes to the law under the Voter Protection Act, and require absurd coverage mandates, such as prenatal care for a 63-year-old woman. On the positive side, the pollster said the proposal would guarantee that people with preexisting conditions had access to care, ensure the continuation of coverage for things like cancer treatment, and keep people from worrying about going into bankruptcy over medical costs. The negative messages tested for the AHCCCS expansion measure said the state would have to raise taxes to pay for it, it would likely preclude attempts to fix Obamacare, it could be government overreach, it s a one-size-fits-all approach, and it would bankrupt future generations. The positive messages said people would lose health care without it, tens of thousands of people without health insurance would simply go to emergency rooms, and that in the long run, it would keep health care costs down. IF IT LOOKS AND QUACKS LIKE A GUBERNATORIAL CANDIDATE... Republican campaign consultant Chris Baker said Phoenix Mayor Greg Stanton s speech this week certainly sounded like someone angling for a run for governor. Otherwise, it s not clear why Stanton would talk so much about Prop 301 or education funding while digging at Ducey, he said. Education funding has so little to do with running the City of Phoenix that it would be tantamount to Brnovich getting up and giving an education speech, Baker said. Still, it makes sense that Stanton, despite the tremendous pressure from Democrats for him to step up, would be hesitant to take on Ducey, who s well-funded and has good polling numbers. He s politically ambitious, but it ll be an uphill battle, Baker said of Stanton. Baker predicted that Stanton will make a strong push for financial commitments before jumping into the race. BECAUSE THE CHILDREN ARE THE FUTURE Ducey signed Arizona s first statewide texting ban today, but S1080 (teenage drivers; communications devices prohibited) only applies to teen drivers for the first six months they have a license. In his signing letter, Ducey said he would be in favor of a law that would extend the texting ban to all minors, but he s generally not a fan of texting bans writ large. He said public awareness and education campaigns are a more effective remedy for preventing accidents due to distracted driving. Blanket laws that ban texting let politicians feel like they ve checked the box, and then move on to the next issue, Ducey said. I just don t think they work, Ducey said of large-scale texting bans. But for teenagers, the state already regulates their driving as a method of teaching, he said. Driving is a privilege for our youth, and they are still the responsibility of their parents, financially and otherwise, before the age of 18, he said. PRESS RELEASES AND NEWS CLIPS Superintendent Diane Douglas: If We Pay Them, They Will Teach (Phoenix, Ariz., April 27, 2017) Arizona Superintendent of Public Instruction Diane Douglas today unveiled a proposal to permanently extend and expand Proposition 301 monies to a full 1 percent, which if supported by voters would result in an immediate 11 percent raise for teachers and $100 million for school facilities. My proposal would generate $400 million annually for teacher salaries and school buildings, Douglas stated. By setting aside the majority of this funding for teacher salaries, we will provide close to an 11 percent raise for teachers Page 4 of 12 April 27, 2017

5 YELLOW SHEET REPORT April 27, 2017 Page 5 in the first year, which means nearly $5,000 more in take-home pay. Using the remaining funding for school facilities can help address another looming crisis, which is the depreciation of our school buildings and infrastructure. Thursday s announcement was shared in Douglas presentation to the Arizona Business Education Coalition (ABEC), a group of Arizona business and education leaders committed to helping develop effective public education policy. Her announcement comes on the cusp of the Superintendent s next annual statewide We Are Listening Tour, which is where these two critical issues were repeatedly brought to her attention. Only an overarching vision and decisive action will allow us to solve our current education crises, the first of which is that teachers need to be paid more, Douglas shared with the ABEC audience. I thank the Governor and Legislature for making teacher pay an important part of their budget discussions this session, and I look forward to working with them to take this next step once a budget is finalized. Douglas proposal would dedicate $300 million per year to teacher salaries and $100 million per year to school capital repairs in the first two years. In years three and beyond, the plan calls for $350 million per year dedicated to teacher salaries and sets aside $50 million per year for school capital. Douglas also expressed support for the restructuring of current Proposition 301 funding to allocate even more money for teacher salaries. For more information and updates about the proposal, visit House Democrats: Alarming Number of Vacancies in Key Positions Undermining Our National Security Six Members of the House Armed Services Committee call on President Trump to fill crucial positions at State and Defense Departments Washington, DC Today, six Democratic Members of the House Armed Services Committee wrote to President Trump urging him to take immediate action to identify and nominate qualified candidates to fill positions in his administration vital to the national security of the United States. At a time when our allies face the growing threat posed by North Korea, key ambassadorships in the Asia-Pacific remain vacant and senior roles at the Department of Defense, including posts devoted to Countering Weapons of Mass Destruction and Security Cooperation, are still open almost 100 days after the President s inauguration. The full text of the letter can be found here. The letter also comes as the New York Times is reporting today that Secretary of State Rex W. Tillerson has done almost nothing to select leaders for the White House s consideration, and nominations for assistant secretaries and others who largely run the State Department are unlikely to be made for months. It s frankly outrageous that nearly 100 days into his presidency, President Trump has barely lifted a finger to fill the jobs that arguably matter most in any administration the positions charged with the diplomacy and defense of our nation, said Rep. Ruben Gallego (AZ-07). The principal reason for this delay is clear: in selecting nominees, President Trump obviously values support for his campaign more than competence or experience. At a time when America faces a mounting crisis in North Korea and renewed antagonism from Russia, I urge President Trump to move rapidly to fill these critical national security positions with qualified American leaders. As a former national security specialist at the Department of Defense, I know that personnel is policy, saidrep. Stephanie Murphy (FL-07). I m concerned that the large number of vacancies in key national security positions throughout the Administration are making us less safe. In order to encounter growing threats and maximize opportunities around the world, especially in the Asia-Pacific region, this Administration needs to quickly nominate qualified people to fill these critical national security positions. "The Trump administration s failure to fill hundreds of positions with qualified officials throughout the Defense and State Departments jeopardizes not only our national security but our leadership in the world. Critical positions dealing with threats as critical as weapons of mass destruction remain unfilled - this is simply unacceptable now 100 days after inauguration. The Trump Administration is letting down our allies by not providing partners to work with on these critical issues, and handing our adversaries a gift through their disorganization and incompetence, saidrep. Seth Moulton (MA-06). Page 5 of 12 April 27, 2017

6 YELLOW SHEET REPORT April 27, 2017 Page 6 Grijalva: Trump s Administration Only Creating New Victims of Violence through VOICE Office WASHINGTON, D.C. Congressman Raúl M. Grijalva (D-AZ) released the following statement today condemning the Trump administration over a serious glitch in their VOICE (Victims of Immigration Crime Engagement Office) database where sensitive information of infants and underage children was publicly released. On its inaugural day, the VOICE Office confirms long-held suspicions that public safety and victim sensitivity are merely afterthoughts to Trump and his hate-filled and fear-mongering rhetoric, Rep. Grijalva said. Releasing the names of any individuals, especially underage children and infants, demonstrates the ineptitude of this administration in protecting the general public. Under no circumstance should a public database exist to track immigrants and their immigration cases, let alone have the information of a three-year-old readily accessible. Contrary to Trump s claims, it s clear that the main purpose of VOICE is to fuel his obsession with scapegoating immigrants to distract from his increasingly unattractive immigration policies. Time and time again, research confirms crime rates among immigrants are lower than the rest of the population. The VOICE Office does nothing more than place a target on more individuals and leave the door open to hate crimes. It s a shameful approach to addressing immigration reform in our country. If Trump truly cared about assisting victims and families, he would understand that VOICE would only perpetuate that cycle of violence he seeks to deter. Will Flake Stand Up for Arizonans as New GOP Healthcare Bill Jeopardizes Coverage for Pre-Existing Conditions? PHOENIX -- As Republicans attempt to revive their healthcare plan that would jeopardize coverage for pre-existing conditions, Senator Flake has remained conspicuously silent. Alexis Tameron, Chair of the Arizona Democratic Party, released the following statement: Jeff Flake s refusal to forcefully condemn the revised Republican healthcare bill, which allows states to opt out of covering pre-existing conditions while protecting such coverage for members of Congress, demonstrates Flake s inability to stand up for Arizonans when it truly matters. From tacitly supporting previous versions of the bill, to endorsing cuts to Medicaid, Flake has been on the wrong side of this issue from the beginning. Unless he condemns this bill, voters will remember his tacit support when they head to the polls in Congressman Biggs' Statement on Federal Injunction for Sanctuary Cities Executive Order Washington, D.C. This week, United States District Court Judge William H. Orrick in San Francisco issued a temporary injunction on President Donald Trump s previous executive order that withholds federal funds from U.S. cities that do not cooperate with federal immigration laws. This decision follows two other court actions blocking a separate executive order on immigration vetting, including decisions by the frequently-overturned Ninth Circuit Court of Appeals. Congressman Biggs issued the following statement: This week s ruling by a federal judge in San Francisco proves yet again that President Trump s immigration enforcement agenda is under assault by liberal, activist judges, who put their politics above national security interests. Many cities are in open contempt of U.S. law by refusing to cooperate with immigration enforcement laws. The safety and security of their citizens depend on those cities adhering to existing federal law, which is what President Trump s executive order sought to accomplish. It is no surprise that this week's ruling originated within the boundaries of the Ninth Circuit Court of Appeals another example of judicial shopping meant to undermine President Trump s policies. Though I respect the balance Page 6 of 12 April 27, 2017

7 YELLOW SHEET REPORT April 27, 2017 Page 7 of power between the Executive, Legislative, and Judicial branches, there is a clear attempt to wreak havoc on the President s responsibility and efforts to protect Americans by concentrating these cases in specific jurisdictions. I firmly believe that both of President Trump s executive orders on immigration vetting and sanctuary cities were rooted in a sincere desire to prioritize American security, based on historical precedent, and within his constitutional authority to execute. Moreover, these judicial antics continue to highlight the need for a new Twelfth Circuit Court of Appeals. The Ninth Circuit Court is overburdened, far too often overturned, and does not reflect the values nor laws of states within its jurisdiction. I continue to fight for my legislation, H.R. 250, to split the Ninth Circuit Court of Appeals, and I support President Trump s efforts to contest this recent decision in federal court. U.S. Rep. McSally Introduces Bill to Eliminate Healthcare Exemption for Members of Congress WASHINGTON, DC U.S. Representative Martha McSally (AZ-02) today introduced a measure that would prevent Members of Congress from exempting themselves from the American Health Care Act (AHCA). In America, lawmakers are not above the law. Members of Congress should be treated no differently than other Americans struggling to afford healthcare, said Rep. McSally. Representatives should have to abide by the very same options for coverage as their constituents, and anything short of that is simply hypocrisy. Congress must live by the rules it creates. To comply with procedural requirements, Rep. McSally s simple, two-page bill would repeal the section exempting members of Congress and congressional staff from these waivers if American Health Care Act becomes law. Rep. McSally has worked closely with Republican leadership who committed that this bill will be voted on in conjunction with the AHCA. To view the full text of the bill, CLICK here. In Sign of a Growing Trend, Republicans Again Using Infrastructure as Cover for Standard Deregulation Agenda at Today s Markup Washington, D.C. Today s Natural Resources Committee markup features multiple environmental deregulation bills disguised as infrastructure planning a continuation of a trend that became clearearlier this month. Committee Republicans spent the month of March holding ostensibly infrastructure-related hearings that consistently repeated decades-old talking points about laws they have sought to weaken, including the Endangered Species Act, the National Environmental Policy Act (NEPA) and others. Among the problematic bills: - Rep. Tom McClintock s (R-Calif.) H.R would turn the Bureau of Reclamation into the federal permitting authority for new surface water storage projects, including dams, and waive all existing NEPA requirements for such projects, which would severely limit public input. - Rep. David Valadao s (R-Calif.) H.R is a tremendous transfer of public resources to Westlands Water District, which the Los Angeles Times identified as cooking its books in March Rep. Louie Gohmert s H.R waives the Lacey Act which prohibits trade in wildlife, fish, and plants that have been illegally taken, possessed, transported, or sold for some water transfers between Texas, Arkansas and Louisiana. - Rep. Doug LaMalfa s (R-Calif.) H.R allows public harvesting of trees and other plants near electric transmission lines through an ill-defined process that lacks public transparency. Today s markup follows a pattern of using infrastructure as cover for pre-existing deregulatory schemes that Ranking Member Raúl M. Grijalva (D-Ariz.) identified in an April 7 statement. So far Republicans haven t offered Page 7 of 12 April 27, 2017

8 YELLOW SHEET REPORT April 27, 2017 Page 8 any infrastructure ideas they ve offered the same old environment-bashing and snake oil sales pitch we ve seen for decades, Grijalva said then. Republicans can t seem to admit that wiping away our environmental laws is bad for the economy, Grijalva said today. This isn t about infrastructure. If it was, we d see funding for genuinely constructive projects. This is using a national need to pass special interest bills. It s going to continue, and no one should be fooled by it. Governor Ducey Statement On Teen Texting Law PHOENIX Governor Doug Ducey today released the following statement after signing legislation to prohibit teens within the first six months of driving from texting or using a cellphone. Distracted driving is a growing problem in Arizona and nationally. I generally believe that public awareness and education campaigns are a more effective remedy to prevent accidents and save lives than blanket laws that let politicians feel like they ve checked the box, and then move on to the next issue. For that reason, I am skeptical of large-scale bans on texting while driving I just don t think they work. But this bill is different. The state already regulates a number of things when it comes to early driving by teens. And for good reason. For our youth, these laws can act as a teacher. In fact, I d be in favor of a law that goes further, banning texting while driving for all minors. Driving is a privilege for our youth, and they are still the responsibility of their parents, financially and otherwise, before the age of 18. If we can use the early years of their driving experience as an opportunity to guide them toward safe and responsible habits, that s a good thing. Senate Bill 1080 applies to teenagers within the first 6 months of driving after they get their license, or until they reach the age of 18. It also applies to teens driving under a learner s permit. Support Grows for Rep. Gosar s Transparency Bill Aimed at Shining a Light on the Bureau of Reclamation WASHINGTON, D.C. - Today, U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) released the following statement after the House Committee on Natural Resources unanimously passed legislation sponsored by the Congressman, H.R. 660 the Bureau of Reclamation Transparency Act, during a legislative markup: In the first 100 days of the Trump Administration, the president has made it clear that business as usual in Washington D.C. is over. No longer will the American people tolerate bloated government agencies that spend us into oblivion while dodging its moral responsibility to provide transparency. Time and time again, history has shown us that this lack of oversight has proven to be a recipe for rampant waste, fraud and abuse. Agencies, like BOR, wield an enormous amount of influence in managing the most important resource for Western states: water. Americans have a right to know if this agency is effectively utilizing our tax dollars in the most efficient way. My bipartisan bill will require a cost estimate and a detailed list of major repairs for BOR facilities and allow for meaningful steps to be taken to address the maintenance backlog. This transparency will ensure an abundant supply of clean water and power for future generations. Background The full text of the Bureau of Reclamation Transparency Act can be found HERE. Wyoming Senator John Barrasso has introduced companion legislation in the Senate. There are 20 bipartisan cosponsors for this legislation including Representatives Mark Amodei, Andy Biggs, Diane Black, Matt Cartwright, Jim Costa, Jeff Denham, Blake Farenthold, Trent Franks, John Garamendi, Louie Gohmert, Jody Hice, Jared Huffman, Doug LaMalfa, Tom McClintock, Martha McSally, Dan Newhouse, Stevan Pearce, Kyrsten Sinema and Scott Tipton and David Valadao. Page 8 of 12 April 27, 2017

9 YELLOW SHEET REPORT April 27, 2017 Page 9 The Bureau of Reclamation was established in 1902 and much of the agency s now aging infrastructure was built more than 50 years ago. Many of the facilities operated by BOR are in desperate need of repairs. This bill requires that the federal government make public the estimated cost of repairs for Reclamation facilities. For years, Congress and water users throughout the country have asked for such information, only to be rebuffed time and again. More specifically, this legislation would require the BOR to do an Infrastructure Needs Assessment Report every two years as part of the BOR s existing Asset Management Plan reporting process. This Infrastructure Needs Assessment Report would be available to the public on BOR s webpage. The report would include: 1) An itemized list of major repair and rehabilitation needs at all federally managed BOR facilities and projects. 2) A cost estimate of the expenditures needed to address those repairs. 3) A categorical safety rating, using BOR s own existing categorical system, of the importance of addressing each item. Senator Smith concerned about future of Navajo Generating Station (Phoenix, State Capitol) --- Today, on the floor of the Arizona Senate, Senator Steve Smith read a resolution he drafted recognizing the importance of the Navajo Generating Station (NGS) and Kayenta Mine and the significant impact of their closing considering that unless new agreements can soon be reached, NGS is scheduled to close by the end of In order to further understand the impact, Senator Smith, along with Senators Borrelli, Burges, and Peshlakai and Representative Mark Finchem will be in Page, Arizona onfriday, April 28 to attend a public hearing featuring community members including local political, business, and school officials. "The Navajo Generating Station plays an important role for all of Arizona, creating both electricity and a positive economic benefit," said Senator Smith. "I look forward to hearing from those who would be directly affected by the closing of the power plant and mine. I support the Navajo and Hopi tribes and Salt River Project in their efforts to reach a long-term, mutual agreement to this situation." Constructed in 1969 and located on the Navajo Indian Reservation near Page, Arizona, the plant has been a driving economic force in the region. Approximately 3,100 jobs depend on the generating station and the Kayenta Mine Complex that powers its operation. Riggs Slams Douglas Proposal for $400 Million in New Taxes Every Year as Wrong Message and Wrong Messenger Cave Creek, AZ (April 27, 2017) -- Republican candidate for State Superintendent of Public Instruction Frank Riggs criticized Incumbent Superintendent Douglas call for an immediate and permanent increase in the Prop 301 sales tax as the wrong message by the wrong messenger. Riggs said, Superintendent Douglas tenure has been nothing short of a disaster, characterized by incompetency, mismanagement and lawsuits. As a result, she has little credibility with her colleagues in state government and no ability to persuade anyone to take her proposals seriously. Riggs continued, If Mrs. Douglas is so concerned about funding for our K-12 schools, why has the Arizona Department of Education, which she oversees, spent over $4 million for travel costs and legal fees - including hundreds of thousands of dollars for private attorneys in her lawsuit against the State Board of Education - in her short 2 1/2 years in office? * Those are taxpayer funds that should have gone towards classroom teaching and learning instead. Riggs also pointed out that Douglas was largely silent and invisible in the campaign to win voter approval of Prop 123 last year. Riggs was a co-chairman and spokesman for that effort to resolve the education inflation funding lawsuit which narrowly won in a special election and will provide Arizona public schools with $3.5 billion in new funding over the next decade. Page 9 of 12 April 27, 2017

10 YELLOW SHEET REPORT April 27, 2017 Page 10 Riggs priorities are to increase teacher compensation and dollars to the classroom, but in a responsible fashion (please see riggsforaz.com). He said, I understand that compensation is important to recruiting and retaining the very best teachers for Arizona s kids. We must give our teachers the respect they deserve and the autonomy they crave. Riggs is a former public school district president and charter school president. As a three-term U.S. Congressman, he chaired the House Subcommittee on Early Childhood, Elementary and Secondary Education, authored federal charter school and special education laws, and was named National Head Start Legislator of the Year. After leaving Congress, he built and ran a national education nonprofit and Community Development Financial Institution dedicated to helping charter schools with significant low-income student populations with their facility financing and development needs. He is also an Army veteran, former police officer and successful small business owner. Riggs concluded, Mrs. Douglas proposal is an obvious ploy to bolster her reelection prospects, but she has marginalized herself by her poor leadership of the Department of Education. I will restore trust and credibility in the office of Superintendent of Public Instruction and demonstrate the integrity, competence and executive leadership we want - and should demand - from our state s schools chief. VIDEO: Flake: We should improve NAFTA. Not abandon it. Washington, D.C. U.S. Sen. Jeff Flake (R-Ariz.) today spoke on the Senate floor outlining the economic benefits of the North American Free Trade Agreement (NAFTA) for businesses and consumers in Arizona and around the country. Trade is not a zero-sum game where one party wins and the other party loses. Free trade benefits everyone. I hope that we remember this as we look toward NAFTA s future. We need to improve it and modernize it, but we shouldn t abandon it, said Flake. Video of Flake s remarks can be viewed here. A transcript of the prepared remarks can be viewed below. Background: On Jan. 31, 2017, Flake, Sen. John McCain (R-Ariz.), and Arizona Chamber of Commerce President and CEO Glenn Hamer wrote an op-ed for The Arizona Republic outlining how Arizona and Mexico s trade relationship has benefited from NAFTA. Read the full op-ed here. *** You simply can t ignore the benefits of NAFTA for the U.S. economy. Experts have said that more than one quarter of global GDP some $20.5 trillion is produced in NAFTA s combined markets of the U.S., Canada, and Mexico. Canada and Mexico are the largest export markets for the United States. U.S. trade with Canada and Mexico has more than tripled since 1993, before NAFTA came into effect. In 1993, U.S. foreign direct investment in Mexico was slightly more than $15 billion. In 2016, there was more than $92 billion in foreign direct investment. NAFTA increased U.S. agricultural exports to Canada and Mexico by 350 percent, supporting U.S. farmers and ranchers like those back in Arizona. NAFTA has resulted in an integrated supply chain between the U.S. and other countries. For example, the Wall Street Journal reported that tens of thousands of parts that make up a vehicle often come from multiple producers in different countries and travel back and forth across borders several times. Abandoning NAFTA would destroy these supply chains, making it harder for our country s largest private sector employers to grow and do business. Arizona has certainly benefitted from NAFTA. In 2016, Arizona s trade with Mexico exceeded $15 billion. Total trade between Arizona and NAFTA countries reached nearly $20 billion last year. The Arizona Daily Star noted back in November that trade with Mexico supports about 100,000 jobs in Arizona and retailers depend on the roughly $8 million Mexican shoppers spend daily in Arizona. The bottom line is that trade is good for American businesses, it s good for American workers, and it s good for American consumers. Trade deals like NAFTA make inputs for U.S. manufacturing cheaper than they would be otherwise. Page 10 of 12 April 27, 2017

11 YELLOW SHEET REPORT April 27, 2017 Page 11 Cheaper inputs mean lower production costs for U.S.-based businesses, which in turn allows those companies to expand production and reduce prices. This makes everyday consumer products more affordable for middle-class families. If the protectionist trade policies of the past have taught us anything, it s that when we increase barriers to trade, nobody wins. Do I agree that we should work to make U.S. businesses more competitive? Absolutely. Do I agree that we could modernize NAFTA? You bet. Pro-growth trade policies have been at the top of my list of priorities throughout my tenure in Congress. But any efforts to impose new restrictions on our ability to trade with Mexico and Canada will have serious consequences for Arizona, leading to lost jobs and higher costs for consumers. If you just think, in 2003 total U.S. trade with Mexico was just around $50 billion. Today, it is between $500 and $ 600 billion. What s not to like about NAFTA? It s good for Americans, it s good for the Mexican economy, it s good for Canada. We have noted many times that with regard to border security, the net flow of migrant Mexican workers has been south and not north over the past couple of years. One of the biggest reasons for that is the Mexican economy is doing better and part of the biggest reason for that is because of NAFTA and their ability to trade. That is good for the United States. It is good for Mexico. Trade is not a zero-sum game where one party wins and the other party loses. Free trade benefits everyone. I hope that we remember this as we look toward NAFTA s future. We need to improve it and modernize it, but we shouldn t abandon it. Governor Doug Ducey Names Arizona State University Student To The Arizona Board Of Regents PHOENIX Governor Doug Ducey today named Aundrea DeGravina as the newest student regent to the Arizona Board of Regents (ABOR). Aundrea is an exemplary student leader, said Governor Ducey. As a junior, she has not only dedicated herself to rigorous academic pursuits, but she has committed herself to philanthropic pursuits that showcase her leadership skills among her peers and serve her community. I m proud to have her on my team currently and even more enthusiastic to have her serve as the voice of students on ABOR. Aundrea is a junior at ASU studying psychological sciences and political science in the Barrett Honors College. She currently serves as a legislative intern at the Governor s Office. As a freshman, Aundrea founded and continues to be active in the Barrett Women s League, a networking organization within the Honors College to connect current students with alumni and faculty. She also served as the Vice President of Community Service for Kappa Delta Sorority, where she managed the sorority s philanthropic events and member volunteer services. As part of her work in ASU Undergraduate Student Government, Aundrea served as the Appropriations Committee Chair, where she organized committee meetings and budget hearings and managed the organization s annual budget. Aundrea has been a Medallion Scholar since 2014 and a Tillman Scholar since Page 11 of 12 April 27, 2017

12 YELLOW SHEET REPORT April 27, 2017 Page 12 I just really want to get on the record that I feel like this is something that has come out of the secretary s need, in my mind, to kind of bail her out of a situation that she s in, having spent half a million dollars on what should have been, I think, the system. - Clean Elections Commissioner Amy Chan, on the CCEC s agreement to help Reagan fund the secretary of state s new online campaign finance system. Page 12 of 12 April 27, 2017