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TED: COMING UP NEXT ON "ARIZONA HORIZON."

IT'S THE JOURNALISTS' ROUNDTABLE.

A LOOK AT THE WEEK'S TOP STORIES, INCLUDING EARLY VETO, AND A BIG ONE, FROM THE GOVERNOR'S OFFICE.

THE JOURNALISTS' ROUNDTABLE IS NEXT ON "ARIZONA HORIZON."

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TED: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

IT'S FRIDAY, AND THAT MEANS IT'S TIME FOR THE JOURNALISTS' ROUNDTABLE.

AND JOINING US TONIGHT, JEREMY DUDA FROM AXIOS PHOENIX.

DENNIS WELCH FROM CBS 5 AND 3TV, AND JIM SMALL FROM THE "ARIZONA MIRROR."

PANEL, GOOD TO HAVE YOU ALL HERE.

THANK YOU FOR JOINING US.

JEREMY, START TO YOU, GET TO THE VETO IN A SECOND, WE CAN GET TO IT ANY TIME BECAUSE THE GOVERNOR DID RELEASE HER BUDGET TODAY, 17.7 BILLION, ALONG THOSE LINES?

>> ABOUT 17.7 BILLION.

FOR OBVIOUS REASONS, PROBABLY THE LAST WE WILL HEAR OF A LOT OF THESE PROPOSALS BECAUSE IT WOULD BE A DIVIDED GOVERNMENT.

SHE'S TOUTING AS SHE DID IN THE STATE OF THE STATE ADDRESS, AFFORDABILITY IS THE BUY WORD HELPING FOLKS STRUGGLING WITH THE RISING COSTS, PRETTY MUCH EVERYTHING THESE DAYS.

THE WAY SHE'S TRYING TO FUND THE 17.7 BILLION IS INTERESTING.

THERE IS ALMOST 760 MILLION THEY'RE ASKING THE FEDERAL GOVERNMENT TO REIMBURSE THE STATE FOR REGARDING BORDER-RELATED EXPENSES, BORDER SECURITY-RELATED EXPENSES.

THERE WAS ONE IN THE BIG, BEAUTIFUL BILL THAT SETS ASIDE 13.5 BILLION TO BE REIMBURSED FOR THIS.

TEXAS ASKED FOR 11 BILLION OF THIS.

WE COULD GET ALL OR SOME OF THIS MONEY, MIGHT NOT GET IT IN TIME FOR THE ACTUAL BUDGET TO BE PASSED.

IT HAS TO BE DONE BY THE END OF JUNE, AND HOPEFULLY GET OUT OF THERE EARLY BECAUSE ELECTION YEAR.

YOU CAN'T PUT THAT IN THE BUDGET WITHOUT HAVING IT APPROVED.

THIS IS THE OPENING SALVO.

A LOT OF NEGOTIATIONS TO COME.

THE GOVERNOR WILL PROBABLY NOT GET WHAT SHE WANTS.

>> SOME OF THIS IN CONTEXT, IF YOU LOOK HOW THE PRESIDENT BEHAVED, IT'S NOT LIKE HE'S RELEASING YOU.

YOU LOOK AT THE FEDERAL DISASTER RELIEF FUNDS THAT DEMOCRATIC GOVERNORS HAVE ASKED FOR, THEY HAVEN'T GOTTEN THAT.

IF YOU'RE COUNTING ON THE ROUGHLY $700 MILLION TO COME IN, SHE WANTS TO USE A BIG CHUNK OF THAT TO FUND HER TAX PROGRAM.

I THINK TO YOUR POINT, I DON'T THINK IT'S GOING TO COME AND CERTAINLY NOT GOING TO COME IN A TIMELY MANNER BECAUSE PART OF THIS WHOLE THING WRAPPED UP INTO THE BUDGET IS THEY HAVE A TAX FIGHT THEY'RE TRYING TO GET DONE AS ARIZONANS ARE FILING TAXES.

THERE'S A TIME COMPONENT ON SOME OF THIS.

TED: WANT TO GET BACK TO THAT IN A SECOND.

JIM, AS FAR AS PAYING FOR THE FEDERAL FUNDS FOR COVID, NEW NIGHTLY FEES ON SHORT-TERM RENTALS, HOW MANY OF THESE THINGS ARE CONCRETE?

HOW MANY ARE WISHFUL.

>> ALL OF THOSE, PLUS THE OTHER BIG ONE WAS THE ADDITIONAL TAX ON LARGE SPORTSBOOKS.

TED: YEAH, YEAH.

>> ABOUT $150 MILLION.

TED: WHERE DID THAT COME FROM?

>> I THINK WHERE THAT CAME FROM IS BACK, 2021, I THINK, WHEN THIS GOT PASSED, THERE WAS DEMOCRATS FOR A WHILE FOUGHT AGAINST THE PROPOSAL TO LEGALIZE IT AND HOW MUCH MONEY THE STATE WAS GOING TO COLLECT FROM IT, AND THERE WAS CONCESSIONS MADE, AND SIDE DEALS MADE AND DEMOCRATS CAME ON BOARD TO PASS THIS THING.

IT DIDN'T TAKE VERY LONG, WITHIN SIX MONTHS THAT EVERYONE LOOKED AROUND AND WENT WAIT A SECOND, THE SPORTSBOOKS ARE MAKING HOW MUCH MONEY AND THE STATE IS COLLECTING NEXT TO NOTHING?

THERE WERE $3 BILLION BET AND THE STATE MADE COLLECTIVELY 15 MILLION OR $12 MILLION IN TAXES.

WHAT IS THE BENEFIT OF DOING THIS?

I THINK DEMOCRATS ARE LOOKING FOR A WAY TO GET BACK AND REOPEN AND LITIGATE THAT.

THE GOVERNOR'S OFFICE HAS A WORK-AROUND FOR CONSTITUTIONAL PROVISION THAT SAYS, HEY, IF YOU RAISE TAXES, YOU NEED TWO-THIRDS OF THE LEGISLATURE ON BOARD.

THE PLAN IS TO GET THE LEGISLATURE TO SAY, HEY, WE WANT TO CHANGE THIS AND DELEGATE ALL OF THAT AUTHORITY TO THE DEPARTMENT OF GAMING, WHO THE DIRECTOR THERE WILL TURN AROUND AND SAY LARGE SPORTSBOOKS, WE'RE GOING TO TAX YOU AT 45% INSTEAD OF 10%, AND WE'LL LET THE TRIBAL ONES AND THE SMALLER SPORTSBOOKS KEEP THINGS AS IS.

>> REPUBLICAN LAWMAKERS ARE NOT TOO KEEN ON RAISING TAXES, I WONDER IF THEY MIGHT GET TRACTION ON THIS.

I THINK THERE ARE A LOT OF CONSERVATIVES WHO LOOK AROUND ACROSS THE COUNTRY SINCE ONLINE WAGERING HAS BEEN LEGAL IN A LOT OF STATES.

CONSERVATIVES SAY THIS WAS A MISTAKE, PEOPLE ARE BECOMING MORE ADDICTED TO GAMBLING AND BECOMING A PROBLEM.

I WONDER IF THIS IS SOMETHING THE GOVERNOR MIGHT BE ABLE TO FIND A LITTLE COMMON GROUND.

>> I WONDER HOW MUCH LITIGATION IS GOING TO BE WRAPPED UP TO.

I IMAGINE THE SPORTS BETTORS AREN'T GOING TO TAKE THIS LYING DOWN.

IF THEY WOULD, I THINK THE COSTS WOULD BE PASSED ONTO THE PEOPLE WHO ENJOY LEGALIZED BETTING HERE IN ARIZONA AS WELL.

TED: DENNIS, STICKING WITH YOU.

I SAW ESA REFORMS AGAIN, $250,000 CAP.

HOW FAR IS THAT GOING TO GO?

>> IT'S GOING TO GO NOWHERE, TED.

OH, YOU WANT MORE?

>> IT WILL GO NOWHERE.

>> REPUBLICANS MADE IT CLEAR, THIS IS A DIE ON THE HILL ISSUE FOR THEM.

THEY DO NOT WANT THE CHANGE.

I DON'T KNOW WHAT LEVERAGE THE GOVERNOR COULD BRING AT THIS POINT THAT IS GOING TO FORCE THEIR HANDS AT ANY OF THIS STUFF.

REPUBLICANS ARE PROUD OF BEING THE FIRST IN THE NATION, THIS KIND OF PROGRAM.

THEY WANT TO EXPAND IT.

THEY LOVE THE PROGRAM AND NOT GOING TO WALK AWAY BECAUSE THE GOVERNOR WANTS IT.

YOU GOT TO BALANCE THE BUDGET SOME WAY.

TED: IS IT A NEGOTIATING POINT?

DOES IT GO THAT FAR?

>> I DON'T THINK SO.

I THINK DENNIS ULTIMATELY IS RIGHT ON THAT, THAT REPUBLICANS HAVE NO INTEREST IN PUTTING REGULATIONS OR LIMITS ON THIS.

YOU KNOW, THE HOBBS BUDGET DOES FRAME IT AS HEY, THESE ARE IDEAS SUPPORTED BY REPUBLICANS AND POINT TO TEXAS, POINT TO FLORIDA AND POINT TO DONALD TRUMP BECAUSE, AGAIN, IN THE ONE BIG, BEAUTIFUL BILL ACT FROM LAST YEAR, IT INCLUDED A FRAMEWORK TO CREATE A NATIONAL SCHOOL VOUCHER PROGRAM.

AND ONE OF THE THINGS IT HAS IN IT IS INCOME CAPS LOWER THAN WHAT HOBBS IS PROPOSING AND OTHER ACCOUNTABILITY MEASURES AND RESTRICTIONS ON IT THAT ARE SIMILAR TO WHAT THE GOVERNOR ROLLED INTO HERS.

THE TALKING POINT IS HEY, PRESIDENT TRUMP SAYS THIS STUFF IS GREAT.

WHY DON'T YOU?

WHY ARE YOU STANDING AGAINST THE PRESIDENT?

IT'S A GOOD TALKING POINT.

WILL MAKE FOR FUN QUOTES.

I DON'T THINK IT'S GOING TO MOVE THE NEEDLE UP.

TED: AS FAR AS PROP 123 IS CONCERNED.

THERE IS 6.9% TO BE THE GOING RATE HERE.

PROP 123 IS THAT GOING TO FINALLY GET TO THE BALLOT?

>> YOUR GUESS IS AS GOOD AS MINE.

A FEW OF US ASKED REPRESENTATIVE MATT GRESS RIGHT AFTER THE STATE OF THE STATE.

REMEMBER LAST YEAR IT GOT CAUGHT UP WHETHER IT WAS GOING TO INCLUDE PROTECTIONS FOR ESAs, SCHOOL CHOICE PROGRAMS.

REPUBLICANS COULDN'T AGREE AMONGST THEMSELVES.

THEY DON'T NEED THE GOVERNOR FOR THIS, BUT KILLED THAT OFF LAST YEAR.

THIS YEAR, MATT GRESS IS SAYING, HEY, MAYBE WE WAIT A YEAR, MAYBE WE DON'T NEED TO DO THIS RIGHT NOW.

MAYBE THEY SEE IF THEY GET MORE SEATS IN THE LEGISLATURE, MAYBE WAIT TO SEE IF THERE IS A CHANGE IN CIRCUMSTANCES.

NOW THAT THE PASS HAS EXPIRED, BACKFILLED THE MONEY, THERE DOESN'T SEEM TO BE THE SAME EAGERNESS, SENSE OF URGENCY TO GET IT DONE.

>> THAT IS A BIG DEAL, THEY BACKFILLED THE MONEY AND GOT THROUGH ONE YEAR, MAYBE WE CAN KEEP DOING THIS AS WELL.

REMEMBER WHEN THIS WAS PASSED BY THE DUCEY ADMINISTRATION, IT DIDN'T PASS BY A WIDE MARGIN, IT WASN'T THE MOST POPULAR BILL PASSED BY THE VOTERS.

WE HAD TO WAIT A DAY OR TWO TO FIND OUT IF IT PASSED OR NOT.

TED: SENATE PRESIDENT PRO TEM SAID WE DON'T NEED TO DO IT RIGHT NOW.

DENNIS, STICKING WITH YOU, REPUBLICAN RESPONSE.

IS THE BUDGET -- ARE THEY SKIMMING IT?

ARE THEY SAYING THIS IS INTERESTING, LET'S GET BACK TO WORK?

WHAT'S GOING ON?

[LAUGHTER] >> EVERYTHING IS A NEGOTIATION DOWN THERE.

THIS IS THE GOVERNOR'S OPENING BID, WHEN SHE PUTS OUT BUDGET, REPUBLICANS HAVE THEIR IDEAS, I'VE SEEN IT PLAY OUT YEAR AFTER YEAR AFTER YEAR AS JEREMY ALLUDED TO EARLIER IN THE SHOW.

WE'LL NOT HEAR A LOT ABOUT THE BUDGET FROM HERE ON IN BECAUSE OF THE POLITICS AND THE REALITIES DOWN THERE, BUT GIVES US A LOT TO TALK ABOUT NOW TO SEE WHERE THE GOVERNOR'S HEAD IS AT THIS POINT.

I DON'T THINK REPUBLICANS ARE GOING TO BE TAKING THIS AS SERIOUSLY AS THE GOVERNOR MAY WANT TO, BUT IT'S DEFINITELY A STARTING POINT.

WE'LL SEE HOW THIS PLAYS OUT.

I'M REALLY INTERESTED TO SEE HOW THIS TAX FIGHT THAT HAS BEEN BREWING HAS STARTED OFF THE LEGISLATIVE SESSION ENDS UP.

TED: JIM, GET TO THE TAX FIGHT, THREE, FOUR DAYS SINCE THE START OF THE LEGISLATURE AND WE GOT VETOES, IT'S ALREADY HAPPENING, JIM.

ALREADY HAPPENING.

>> WE DO FASTEST BILL PASSED AND SWIFTLY VETOED.

DAY FIVE AND WE ALREADY HAVE A VETO?

YEAH, REALLY ONE OF THE MOST BORING THINGS THEY DO IS CONFORMING THE STATE TAX CODE TO THE FEDERAL TAX CODE.

CONGRESS AND THE IRS TWEAK THINGS AND IT REQUIRES EVERY STATE TO COME BACK AND DECIDE HOW ARE WE GOING CONFORM?

SO YOU MAKE IT AS EASY AS YOU CAN ON TAXPAYERS.

THAT WAY THINGS THAT ARE DEFINED ONE WAY IN FEDERAL TAX LAW ARE DEFINED THE SAME WAY IN STATE LAW.

THIS YEAR BECAUSE OF THE ONE BIG, BEAUTIFUL BILL ACT, TAX CUTS AND SPENDING PACKAGE IN D.C., A LOT OF TAX CUTS, A LOT OF CHANGES TO TAX LAW.

STATES HAVE TO INCORPORATE THOSE AND DECIDE HOW TO DO IT.

REPUBLICANS WANT TO BASICALLY WHOLESALE, ADOPT EVERYTHING INVOLVED IN THAT.

GOVERNOR'S OFFICE WANTS TO ADOPT MOST OF IT, A GOOD CHUNK OF IT, BUT NOT ALL OF IT, AND IN PARTICULAR SOME OF THE TAX CHANGES FOR BUSINESSES.

SHE DOESN'T WANT TO PUT THOSE IN THERE, AND SO REPUBLICANS VERY SWIFTLY PASSED THIS BILL TO SEND IT UP TO THE GOVERNOR AND THE GOVERNOR VETOED IT, AFTER HAVING ALLUDED TO IT IN HER STATE OF THE STATE SPEECH, I WANT THIS DONE BUT I WANT IT DONE THE WAY I WANT IT, AND REPUBLICANS THUMBED THEIR NOSE AT IT.

TED: DID THE GOVERNOR CALL POLITICAL THEATER, PUTS BILLIONAIRE AND SPECIAL INTERESTS FIRST, THEY HAVE NO PLAN TO PAY FOR IT.

>> THAT'S WHAT'S INTERESTING, THE THINGS SHE OBJECTED TO VEHEMENTLY.

SHE'S NOT CLOSING THE DOOR COMPLETELY.

SHE'S SAYING PASS WHAT I WANT, AND THEN LATER IN THE SESSION, WE'LL DEAL WITH YOUR STUFF, AS LONG AS YOU CAN EXPLAIN HOW WE'RE GOING TO PAY FOR THIS WITHOUT CUTTING VITAL SERVICES -- THINGS THAT ARE VERY IMPORTANT TO HER.

THIS IS SOMETHING WE'RE GOING TO SEE -- AGAIN, LET THE BUDGET PLAY OUT FOR A WHILE.

THEY DON'T LOOK ANYWHERE NEAR AN AGREEMENT, BUT I THINK ONE GROUP OF FOLKS EAGER TO SEE A QUICK RESOLUTION IS THE DEPARTMENT OF REVENUE, THE PEOPLE WHO PUT OUT THE TAX FORMS AND PROBABLY A LOT OF TAXPAYERS.

YOU DON'T REALIZE HOW THIS MIGHT AFFECT THEM.

A FEW MONTHS AGO, THE GOVERNOR TOLD THE DEPARTMENT OF REVENUE TO PUT OUT ANNUAL STATE TAX FORMS ASSUMING CONFORMITY WITH THE BIG, BEAUTIFUL BILL.

IF YOU ARE FILING WITH THAT, THERE'S GOING TO BE CHANGES.

MOST FOLKS TAKE THE STANDARD DEDUCTION, YOU FILE WITH THAT, WHICH PEOPLE ARE STARTING TO DO, YOU HAVE TO REFILE BASED ON WHAT THE TWO SIDES NEGOTIATE.

TED: REPUBLICANS ARE ALREADY SAYING, BECAUSE OF THAT, THE GOING IS SOWING CHAOS AND IT IS IMPOSSIBLE FOR THE TAXPAYERS.

>> I WANT TO GO BACK TO WHAT THE GOVERNOR SAID, THIS IS A BIG TAX BREAK TO THE BILLIONAIRES, I SPOKE TO SPEAKER MONTENEGRO.

HE SAYS THAT'S NOT CASE, BECAUSE THE BIG ISSUE WAS THE SALT TAX, WHICH ALLOWS -- CORRECT ME IF I'M WRONG -- PEOPLE TO DEDUCT STATE AND LOCAL TAXES OFF THE FEDERAL TAX BILL.

MONTENEGRO SAYS THEY TOOK OFF.

IT'S NOT IN THE BILL.

HE DIDN'T SEEM EAGER TO NEGOTIATE OTHER POINTS HE FEELS THEY PUT TOGETHER A GOOD BILL THAT THEY WORKED ON.

OBVIOUSLY EVERY SPEAKER I'VE SPOKEN TO, THEY DON'T WANT TO NEGOTIATE THESE KINDS OF THINGS IN THE PUBLIC.

MONTENEGRO IS NO DIFFERENT HERE, HE DIDN'T SEEM TOO INTERESTED OR STRESSED ABOUT WORKING WITH THE GOVERNOR TO NEGOTIATE AWAY ANYTHING IN THEIR TAX PACKAGE.

TED: IS THERE NEGOTIATING ROOM HERE?

DO YOU THINK BOTH SIDES ARE -- WHAT?

>> THEY ARE NOT VERY CLOSE TOGETHER, THEY HAVE TO FIGURE OUT A WAY TO MAKE THIS WORK BECAUSE TAXPAYERS NEED TO UNDERSTAND WHAT'S GOING ON.

I THINK FUNDAMENTALLY WHAT IT SEEMS LIKE IS THEY HAVEN'T NEGOTIATED ANYTHING YET.

EACH SIDE IS BLAMING THE OTHER SAYING, WELL, THEY DIDN'T COME TO THE TABLE.

AND CONVERSELY SAYING, WELL, THEY DIDN'T CALL ME TO THE TABLE.

IT REQUIRES SOMEONE TO PICK UP THE PHONE OR SEND AN E-MAIL.

>> OR SET UP A TABLE.

>> ON THE CAPITOL LAWN, SET UP A CARD TABLE AND SEE WHAT HAPPENS.

THEY'RE GOING TO HAVE TO GET TOGETHER AND NEGOTIATE A FIX TO THIS, THERE'S NO WAY AROUND IT.

I THINK THE CURRENT SITUATION IS PROBABLY UNTENABLE FOR TAXPAYERS.

I DON'T THINK ANYONE WANTS THEIR FINGERPRINTS ON IT, AND CAN YOU ONLY BLAME THE OTHER SIDE FOR SO LONG.

>> THE LONGER YOU GO, THE WORSE IT GETS AND THE LONGER YOU GO, THE LONGER THE SESSION GOES, AND THE LONGER YOU GO, THE LESS TIME YOU HAVE TO CAMPAIGN.

IT'S AN ELECTION YEAR.

>> THE LONGER YOU WAIT, MORE PEOPLE ARE FILING AMENDED TAX RETURNS CLOSE TO THE ELECTION AND WONDERING WHO IS TO BLAME WITH THIS?

TED: JEREMY, STICKING WITH YOU, MARK BRNOVICH, SURPRISING STORY, DIED OF A HEART ATTACK AT 59.

VERY HIGH-PROFILE, COLORFUL CHARACTER HERE.

DID A LOT FOR ARIZONA.

>> I THINK WE WERE ALL BLOWN AWAY.

59.

NOT SOMEONE YOU THINK OF SOMEONE YOU EXPECT TO BE AROUND FOR A WHILE.

IN THIS BUSINESS, WE MEET A LOT OF VERY INTERESTING AND MEMORABLE AND COLORFUL CHARACTERS, AND FEW AS MUCH AS MARK BRNOVICH, WHO VERY OFF THE CUFF SPEAKING STYLE, WOULD SPEAK HIS MIND, WAS NOT AFRAID TO PICK FIGHTS WITH BOTH SIDES OF THE AISLE, INCLUDING HIS OWN.

HE'S WELL-KNOWN AS A VERY PASSIONATE GRATEFUL DEAD FAN.

CONSTANTLY QUOTE THEM.

NUNCHUCK AFICIONADO, WE ARE SADDENED TO HEAR HE'S GONE.

>> VERY SADDENED, YOU FORGOT HE HAD THE GRATEFUL DEAD POSTER IN HIS A.G.

'S OFFICE, VERY MUCH A FAN AS HE WAS.

BRNOVICH WAS CONSIDERED A RISING STAR.

HE HAD THE BIG PERSONALITY CONNECTED WITH FOLKS.

PEOPLE SAW HIM AS A POTENTIAL GOVERNOR, POTENTIAL SENATOR.

MOVING FORWARD, IT DIDN'T WORK OUT FOR HIM.

HE ENDED UP RUNNING FOR THE U.S.

SENATE.

HE COULDN'T GET THE NOMINATION, THE TIMING FOR HIM JUST WASN'T RIGHT.

SO HE KIND OF FADED AWAY.

I DON'T KNOW IF HE WAS PLANNING ON MAKING ANY KIND OF COMEBACKS IN POLITICS, BUT AT 58, 59 YEARS OLD IN THE GAME POLITICS, YOU'RE STILL PRETTY YOUNG.

I THINK THERE COULD HAVE BEEN SOME POSSIBILITIES TO DO THAT.

A REAL SHOCK AND REAL SAD.

>> THE TRUMP ADMINISTRATION DID NOMINATE HIM TO AMBASSADOR TO SERBIA.

IT WAS WITHDRAWN LATER LAST YEAR BUT SHOWED HIM STILL IN THE MIX.

TED: WE SHOULD MENTION, BECAUSE OF ELECTION CONCERNS AND WHAT THE PRESIDENT WANTED DONE, MR.

BRNOVICH DID NOT NECESSARILY STEP IN THE RIGHT DIRECTION, THERE WAS TENSION THERE.

>> YEAH, THERE WAS.

DENNIS ALLUDED TO THAT ABOUT THE TIMING NOT BEING RIGHT FOR U.S.

SENATE BID, AND THAT WAS A MAJOR REASON HE COULDN'T GET OUT OF THE REPUBLICAN PRIMARY WAS DONALD TRUMP SAVAGED HIM BASICALLY, AND PUBLICLY SAID NO ONE SHOULD VOTE FOR THIS GUY BECAUSE HE DIDN'T BACK THE PRESIDENT'S LIE ABOUT THE 2020 ELECTION BEING RIGGED AND STOLEN IN ARIZONA.

AND, YOU KNOW, THAT WAS THE KIND OF THING THAT, AGAIN, SPEAKS TO BRNOVICH'S WILLINGNESS TO SPEAK WHAT'S ON HIS MIND AND THE WAY HE VIEWED THINGS AND THE TRUTH HE SAW, BUT THAT WAS CERTAINLY A CONSEQUENCE TO IT.

>> SURE, HE WAS A CONSERVATIVE, A LOYAL REPUBLICAN, BUT ONE OF THE FIRST PEOPLE TO COME OUT IN 2020 SAY DONALD TRUMP LOST THE ELECTION.

WON ARIZONA FAIR AND SQUARE.

QUICK TO SHOOT DOWN SHARPIE GATE, THE FIRST OF MANY CONSPIRACY THEORIES OF THE ELECTION, HE JUMPED INTO IT, I LOOKED INTO IT, THERE WAS NOTHING THERE, A LOT OF FOLKS WERE NOT HAPPY WITH HIM ON HIS SIDE OF THE AISLE.

>> CATEGORICALLY, AS SOON AS KRIS MAYES TAKES OVER, THE OFFICE ACCUSES BRNOVICH OF BURYING THAT REPORT.

YOU CAN'T OVERLOOK THAT EITHER BECAUSE THAT WAS A BIG DEAL WHEN THAT CAME OUT, AND A LOT OF PEOPLE WERE NOT HAPPY WITH BRNOVICH'S DECISION TO HOLD ONTO THE REPORT LAZ.

TED: TWO TERMS AS ATTORNEY GENERAL, GOLDWATER INSTITUTE, HELPED LEAD THE ARIZONA DEPARTMENT OF GAMING AND USED TO ENJOY HAVING HIM ON THE SHOW TO COMPARE GRATEFUL DEAD LYRICS.

HE KNEW HIS WAY AROUND THAT, AND NUNCHUCKS, TOO.

TALK ABOUT SENATOR MARK KELLY AND SUES THE DEFENSE SECRETARY, THE PENTAGON, THE NAVY, THE NAVY SECRETARY, COUPLE OF CORPORALS AS WELL.

HE'S SUING EVERYONE BECAUSE THEY'RE TRYING TO TAKE AWAY HIS PENSION.

>> HE IS.

WE SPOKE ABOUT THIS LAST WEEK AND WHAT LED UP TO IT.

THE LAWSUIT BASICALLY SAYS YOU ARE VIOLATING FEDERAL LAWS, VIOLATING THE CONSTITUTION.

YOU CAN'T -- THE WAY THAT YOU DID IT, WHAT YOU WANT TO DO IS ILLEGAL AND UNCONSTITUTIONAL AND THE WAY YOU SET ABOUT DOING IT IS ALSO PRETTY PLAINLY VIOLATES FEDERAL LAW, AND THE PROCEDURES ABOUT HOW THIS IS SUPPOSED TO HAPPEN.

JUST REFRESHER, YOU KNOW, MARK KELLY WAS ONE OF A HANDFUL OF DEMOCRATS WHO FILMED A VIDEO TELLING TROOPS, IF YOU GET AN ILLEGAL ORDER, YOU DON'T NEED TO FOLLOW IT.

IT OUTRAGED THE PRESIDENT.

OUTRAGED SECRETARY HEGSETH.

AFTER MONTHS OF TRYING TO FIGURE OUT WHAT TO DO, THEY DECIDED THEY WERE GOING TO TRY TO DEMOTE CAPTAIN KELLY FROM CAPTAIN DOWN TO SOMETHING ELSE AND TAKE DOWN SOME OF HIS RETIREMENT BENEFITS.

TED: INDEED, KELLY WANTS TEMPORARY RESTRAINING ORDER.

DID WE GET THE TRO?

I THINK THEY MOVED THIS BACK TO JANUARY 28 FOR THE HEARING.

I GUESS HEGSETH AND BOTH SIDES AGREED TO A PAUSE.

>> I THINK THE BIGGEST THING THAT COMES OUT OF THIS IS THIS IS REALLY UPPED MARK KELLY'S PROFILE.

HE WAS ON THE SHORT LIST IN 2024, VETTED FOR VP, BUT NOW WITH ALL THIS, HE IS CONSTANTLY ON THE HEADLINES, ON THE NATIONAL NEWS, AS THIS TARGET OF THE ADMINISTRATION, AND AGAIN, IT BEARS REPEATING, MARK KELLY HAS ONE OF THE MORE UNIQUE RESUMES YOU WILL FIND IN POLITICS.

HE WAS A COMBAT PILOT.

HE WAS AN ASTRONAUT, YOU KNOW?

NOT MANY OF THOSE.

I THINK JOHN GLENN MAY HAVE BEEN THE LAST ASTRONAUT TO SERVE IN THE SENATE, AND HE'S THE HUSBAND OF GABBY GIFFORDS.

SO THERE'S A LOT GOING FOR HIM, AND NOW HE IS CONSTANTLY IN THE NEWS CYCLE OUT THERE AND CONSTANTLY ON THE RADAR SCREEN OF PEOPLE FOLLOWING POLITICS IN AMERICA.

TED: RESPONSE FROM HEGSETH, CAPTAIN KELLY WILL BE HELD TO ACCOUNT, THAT'S WHY HE'S SO WORRIED AND CRANKY.

THESE TWO GUYS DO NOT LIKE EACH OTHER.

>> ONE OF THE IRONIC THINGS HERE IS DEFENSE SECRETARY HEGSETH MADE A SIMILAR STATEMENT PUBLICLY IN 2016 THAT TROOPS DON'T HAVE TO FOLLOW ILLEGAL ORDERS, SOMETHING THEY'RE TAUGHT IN TRAINING, AND WHERE YOU SIT DEPENDS ON WHERE YOU STAND BECAUSE WHO WAS PRESIDENT IN 2016?

BARACK OBAMA.

PETE HEGSETH IS NOT A HUGE FAN OF.

PRESIDENT TRUMP, THEY'RE TRYING TO PORTRAY THIS AS KELLY IS POTENTIAL CO-DEFENDANTS IN THIS TELLING PEOPLE TO TREAT LEGAL ORDERS AS ILLEGAL.

NOT SPECIFYING, THE GENERAL BLANKET ORDER, IF YOU RECEIVE AN ILLEGAL ORDER, YOU DON'T HAVE TO FOLLOW THAT.

TED: A NUMBER OF ATTORNEYS ON THE SHOW, NO ONE THINKS THERE IS MUCH OF A CASE FOR THE DEFENSE SECRETARY WHEN.

THIS GETS DOWN TO BRASS TACKS, THIS AIN'T GOING TO FLIGHT.

ARE WE SEEING PEOPLE MAKING A CASE FOR HEGSETH?

>> NO, NO, NOT YET.

THAT'S GOING TO COME OUT AS THE LAWSUIT ADVANCES AND THINGS MOVE FORWARD.

NOT PARTICULARLY.

I THINK RIGHT NOW WE'VE MOSTLY, AT LEAST ON THE LEGAL FRONT SEEN SENATOR KELLY'S SIDE OF THINGS.

>> THE KEY THING IS WHEN YOU LOOK AT VIDEO, THEY'RE NOT URGING ANYBODY TO DO ANYTHING.

THEY'RE NOT SAYING DISOBEY THESE ORDERS AND THIS, THAT OR THE OTHER THING.

THEY'RE SAYING BASICALLY REPEATING THE LAW.

TED: YEAH.

>> AND THAT'S PART OF KELLY'S DEFENSE.

LOOK, YOU CAN'T JUST STATE THE LAW, WHAT CAN YOU SAY?

TED: RIGHT.

JIM, LET'S END IT OF THE STORY OF A HOME WRECKER, ALLEGED HOME WRECKER, TALK TO US PLEASE.

>> YEAH, FORMER SENATOR KYRSTEN SINEMA SUED BY THE WIFE OR SOON TO BE EX-WIFE OF ONE OF HER FORMER BODYGUARDS WHEN SHE WAS IN THE SENATE WHEN THE WIFE ALLEGES SHE CARRIED ON AN AFFAIR OVER THE COURSE OF A YEAR OR TWO WITH THE BODYGUARD, AND NORTH CAROLINA HAS A LAW THAT I THINK USED TO BE MORE COMMON BUT IS RARE THESE DAYS, CALLED ALIENATION OF AFFECTION, WHICH ALLOWS, IF A SPOUSE GETS CHEATED ON, IT ALLOWS THAT SPOUSE TO SUE THE THIRD PARTY ISSUE THE OTHER PERSON INVOLVED IN AN EXTRAMARITAL AFFAIR.

THAT'S WHAT'S GOING ON RIGHT NOW.

A CASE STARTED IN COUNTY COURT IN NORTH CAROLINA AND HAS BEEN ELEVATED TO FEDERAL COURT AT THE REQUEST OF FORMER SENATOR SINEMA.

SO AS SOON AS THAT HAPPENED, IT GOT A LOT OF ATTENTION.

TED: YES, APPARENTLY THE ESTRANGED WIFE WANTS $25,000 OF DAMAGES, AND ALL SORTS OF CLAIMS HERE.

>> MIGHT HAVE BEEN WORTH $25,000 TO KEEP THIS OUT OF THE NEWS.

SOME OF THE STUFF IN THE COMPLAINT, IF ANYONE WANTS TO READ IT, KIND OF TAWDRY THERE, IT'S AN INTERESTING READ, AND THIS GUY WAS URGED, ACCORDING TO THE LAWSUIT, URGED BY THE HEAD OF SECURITY OF THEN-SENATOR SINEMA TO LEAVE WITH HER FROM THE OFFICE.

HE WAS GOING TO CONCERTS WITH HER, SOMETIMES THE TWO OF THEM, TO NAPA VALLEY.

APPARENTLY, THE WIFE CAME ALONG ONE TIME AND THEY BROUGHT HER UP TO CINDY McCAIN'S SUITE AT THE U2 CONCERT ATMOSPHERE.

NOT BORING.

>> A LOT OF TABLOID STUFF, BUT THERE'S TAXPAYER ELEMENT IN THERE AS WELL.

WE FOUND THE BODY GUARD OF HERS WAS LISTED AT SOME POINT AS STAFF.

I BELIEVE HE WAS PUT ON THE SENATE STAFF, WHICH IS FUNDED BY TAXPAYER MONEY IN JUNE OF 2024 BEFORE SHE LEFT OFFICE, OBVIOUSLY.

SO I KNOW SENATE RULES, ETHICS RULES AND STUFF LIKE THAT TEND TO FROWN DOWN ON THOSE KINDS OF HIRES AND WHAT NOT, AND OTHER PEOPLE HAVE GOTTEN INTO SERIOUS TROUBLE FOR THAT.

I DOUBT ANYBODY IS GOING TO COME BACK NOW THAT SHE'S OUT OF OFFICE AND DO ANYTHING ABOUT THAT.

IT HAS THE TAXPAYER ANGLE TO IT, IF YOU LOOK AT IT.

REST OF IT, I'M WITH YOU, VERY TAWDRY.

TED: THERE WERE REPORTS HE'S HAVING SERIOUS PROBLEMS, MENTAL PROBLEMS, AND SHE GOT HIM ON THE PSYCHEDELIC DRUG TREATMENT TO ADDRESS THESE THINGS.

THE CLAIM IS ONCE HE GOT ON THAT, IT GOT WORSE AND THE ALIENATION OF AFFECTION OCCURRED.

GOODNESS GRACIOUS, JIM.

>> YEAH, SENATOR SINEMA ARGUED OR ADVOCATED FOR A BILL HERE ABOUT FUNDING FOR RESEARCH INTO A PSYCHEDELIC SUBSTANCE THAT IS BEING EXPLORED LIKE MANY OTHERS ARE FOR TREATMENTS OF PTSD AND TRAUMATIC BRAIN INJURIES AND DEPRESSION AND THINGS LIKE THAT, AND SHE BROUGHT HIM DOWN HERE TO TESTIFY IN FRONT OF THE LEGISLATURE.

SO IT IS AN INTERESTING THING.

I THINK THERE'S A LOT GOING ON AND THE LAWSUIT HINTS AT THINGS THAT WERE OUT OF PUBLIC EYE BUT MAYBE IF THIS LAWSUIT CONTINUES, THERE IS GOING TO BE MORE SHOES TO DROP AND MAYBE MORE SKELETONS TO FALL OUT OF CLOSET HERE.

>> IMPORTANT TO REMEMBER TOO, SPEAKING TO ONE ATTORNEY YESTERDAY ABOUT THIS AS WELL, AND THEY WERE LIKE, LOOK, THIS IS ONE SIDE FROM A SPURNED WIFE, AND YOU HAVE TO REMEMBER THAT.

THAT WE HAVEN'T HEARD HER SIDE YET, HAVEN'T HEARD THEIR STORIES YET, IF THEY REFUTE SOME OF THIS OR NOT.

IT'S A WOMAN MAKING CLAIMS USING A VERY OLD LAW FROM MY UNDERSTANDING.

TED: THIS MAN IS NOW A FELLOW AT ASU WHERE KYRSTEN SINEMA DOES DO SOME INSTRUCTION AND HAS AN ASSOCIATION, SO THERE'S THAT AS WELL.

GENTLEMEN, GOOD TO HAVE YOU HERE.

THANK YOU FOR JOINING US.

THAT'S IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

YOU HAVE A GREAT WEEKEND.