The Source currently evaluates to an error - Data Validation Question

I am currently creating a form to hold 2 drop down lists that change depending on the selection in the first one. I had never done this before and taught myself and got it to work minus one problem. As soon as I input the formula under the Data Validation the error: "The Source currently evaluates to an error. Do you want to continue?" pops up. Right now the formula works except for the last 6 options in my first drop down. When I select them nothing pops up in the 2nd drop down menu. I have double checked and triple checked that I have no spaces or anything in my LIST on worksheet 2 or any of the names are input correctly. I am currently at a loss and would appreciate any help or ideas. Thank you for your time.


A7 is the first drop down - PROPOSED

B7 the second. - ITEM #

Lists and data to populate the lists are on worksheet 2 with the "List" at the bottom of worksheet 2...