The crux of the legal problem there, as Don Hughes of the AHCCCS sees it, is that Proposition 200 would put the state at odds with all sorts of federal regulations.For instance, it would require state employees to share information with the federal Bureau of Citizenship and Immigration Services, but federal law, for privacy purposes, forbids most disclosure of medical information.Hughes notes that if the state employees follow the federal rules, they could be breaking state law--but failure to comply with the federal law could mean that federal dollars are cut off from the program. In any event, Hughes predicts the department is likely to face legal action both from citizens who want to cut off benefits and from advocacy groups challenging decisions to change eligibility requirements. "If the ballot initiative passes, AHCCCS most likely will be one of the first state agencies sued to force compliance," Hughes writes in a memo regarding PAN.