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Tea Party Rallies; Health Care Bill Repeal; Oprah Winfrey Settles Case

Aired March 27, 2010 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN NEWS ANCHOR: OK, well, I'm Fredricka Whitfield.

A call for another type of change this weekend. Tea and Coffee Parties are pushing for government reform at rallies and gatherings across the country. Their main focus, health care reform. Passage of that landmark bill, a major victory for President Obama, but will it carry a political price? And what's next on the president's to-do list? We'll have live coverage from our team of reporters.

Let's get started now with the day's biggest event, at least one of them, thousands of Tea Party activists are rallying in Searchlight, Nevada, hometown of Senate Majority Leader Harry Reid. The Tea Partiers are calling on voters to defeat Reid and other Democrats in November for their role in passing health care reform. Today's rally headlined by former Alaska governor Sarah Palin is just the first of many protests planned across the country. CNN's Ed Henry is live in searchlight, Nevada.

Ed, why is the Tea Party starting its latest tour in Searchlight and why targeting Senator Reid?

ED HENRY, CNN SR WHITE HOUSE CORRESPONDENT: Well, Fred, you're right. This is very symbolic, this is the hometown of Senator Reid. He's been telling me for years that he had a hard scrabble background and this is sort of the middle of nowhere and I didn't believe him until I drove in from Las Vegas this morning. It really is. Very small town. Normally population 800 people. The Tea Party, though, the movement is saying they're going to have about 10,000 people here, boost the city pretty big.

I can tell you, there is only a couple to a few thousand, right now. A couple hours, though, still before Sarah Palin will start speaking. Joe, "The Plumber," as well, from the 2008 campaign. I think their big question hanging over it, though, is it going to be a fringe movement or is it going to have real impact?

From here they're going to go on to Henderson and the suburbs of Las Vegas and start hitting various districts and states where there are vulnerable Democrats in the House and the Senate. They're going it to go all the way, the Tea Party Express, to Washington, D.C. on April 15, hitting all these states along the way. They want to be there for tax day in Washington, talk about government spending.

A lot of signs out behind me are about government spending, about the health care reform bill. But then there is also some of the more nasty ones calling the president a traitor. I overheard one man telling a woman he was born in Kenya. There are people here who are definitely more extreme. Then there are others who want generally perhaps to reform government. Think Washington is spending too much money. I also saw an RV with a sign on it that said, "Yes, we are a threat, we vote," trying to make a statement about some of those threats against members of Congress that they're not interested in violence, they're just interested in changing things at the ballot box -- Fred.

WHITFIELD: And so Senator Reid, where is he? Is he noticing this is happening in his own backyard?

HENRY: I spoke to his office yesterday. They said he'll be in the state, but he's doing some other business. He's not going to be anywhere close to this rally. What's quite interesting, and an interesting twist, this is the first state, Nevada, where the Tea Party has qualified to have a Senate candidate get on the ballot. And initially a lot of pundits were saying well, that could be yet another problem for Senator Reid who is in deep trouble in his re-election. He's been at about 39, 40 percent in the polls, nowhere close to majority.

But, we've seen in recent weeks from some of the polling that it looks like the Tea Party candidate may pull votes from the eventual Republican nominee and in a three-way race, the Republican and the Tea Party may split it and then Harry Reid may have a better shot of winning in a three-way race. And, in fact, in recent days, the Tea Party folks nationally are saying they want nothing to do with the local candidate here. So, again, I think that gets back to the bottom line question here at this rally, is it going to be a fringe movement or is it going to be a movement that has real impact in the midterm elections -- Fred.

WHITFIELD: And you flew out to Vegas with a congressional member. What was that journey like and what was your observation?

HENRY: Yeah, I happened to run into Dina Titus, who is a House Democrat, a vulnerable and she actually is based in Henderson. The Tea Party Express is going to go from here to Henderson tonight and have a rally. They're trying to boot her out of Congress because of her vote for health care reform. And I said, how are you doing? She said, look, I'm under a lot of pressure, but she feels confident. She told me she's not going to be anywhere close to that rally tonight, basically not her cup of tea, I guess. But basically said, look, she feels over the next two weeks, during this Easter recess, she's going to have some town halls, have some events with her constituents where she lays out the benefit of the health care bill, she told me, she's believes she's looking at these national polls showing maybe the health care effort is starting to pick up a little bit of steam. She thinks when she explains it to people it is going to work.

And also I can tell you, I've been noticing on Las Vegas airwaves, all kinds of ads from SEIU labor union, defending Congresswoman Titus, thanking her for voting for health care reform. That's in about 40 House races, various unions, DNC, others, running these thank you ads. So, they're trying to fight fire with the Tea Party, the chamber of commerce, business groups, who are going after these Democrats. You've also got on the Democratic side some thank you ads trying to give them a little bit of political cover -- Fred.

WHITFIELD: All right, interesting stuff. We'll check back with you throughout the day. Ed Henry, appreciate it. And of course, as we mentioned, former Alaska governor Sarah Palin is scheduled to kick off the Tea Party rally with a speech at 3:00 Eastern Time. Of course we'll bring that to you live, as well.

All right, another political movement, the Coffee Party, USA, is looking for ways to expand its reach. The grassroots group is holding rallies across the country. It is the second get together today in Washington. This is what you're looking at right now, hoping to take its message nationwide. The group says it is not in line with any political party, corporation or lobbying network. Its goal, cooperation in government.

(BEGIN VIDEO CLIP)

DIANE BLISS, COFFEE PARTY PARTICIPANT: When I was in college I was involved in some activist organizations, but in the last 20 years or so, no, I haven't been involved in any kind of political movements. And I think that the time is right, especially with the 2008 presidential election. There was a lot of energy and enthusiasm and the fact that we have got so many things that people disagree about. There is a lot of energy in this country and people have a lot of disagreements. And I think we can harness that energy for good as long as we remain civil.

(END VIDEO CLIP)

WHITFIELD: The Coffee Party says it will support leaders who work toward positive solutions and work against those who obstruct it.

All right, President Obama says this week he made good on his campaign pledge to reform health care. He still needs to sign the second part of the health care reform next week, the so-called "Fix- it" bill. Well, it makes slight changes to the broader health care package the president signed into law on Tuesday. The president says Americans will start feeling the benefits of the new law very soon.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), UNITED STATES PRESIDENT: This year, we'll start offering tax credits to about four million small businesses to help them cover the costs of coverage. And that means the folks like Ryan will immediately get a tax break so that he can better afford the coverage he's already providing for his employees and who knows, because of that tax break, he may decide to hire a couple more folks in his small business because of this legislation.

(APPLAUSE)

This year, tens of thousands of uninsured Americans, with a pre- existing condition, and parents whose children have a pre-existing condition, will finally be able to purchase the coverage they need. And that means folks like Natoma Canfield (ph) will have access to affordable insurance. That happens this year.

(END VIDEO CLIP)

WHITFIELD: CNN's deputy political director Paul Steinhauser joins us from Washington. So Paul, with the health care reform now checked off his presidential to-do list, what will President Obama and the Democrats in Congress be focusing on now?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIR: He's still got a pretty large to-do list, the president and the Democrats in Congress, because unemployment is still hovering right near 10 percent, just below it. So, jobs is still number one for the president and for Congress. You're going to see the president on Friday head to North Carolina to talk about the economy. But, there's a lot of other things as well, Fred. Financial reform, Wall Street reform, that is something the president and Democrats in Congress really want to push through. It's already passed the House and now they're trying to push it through the Senate; that will also include consumer protections for most Americans. They want to try to prevent another collapse like we saw back in 2008 of the financial sector.

Other things out there, immigration reform. We saw a very large rally right here in Washington, D.C. last weekend and that is -- not on the back burner anymore, in fact that's something the president and Democrats in Congress, when it comes to immigration reform and border security, that's something they're going to want to try to push through this year.

And also one other thing, let's not forget about clean energy reform. That is something that the Democrats are also looking to work on, it passed the House last year, but has not gone too far in the Senate -- Fred.

WHITFIELD: OK. Meantime, we saw quite the ceremony at the White House as the president signed that Senate bill. Are we likely to see the same kind of ceremony as he signs this "Fix-it" bill.

STEINHAUSER: Well, I believe there is something planned for midweek, either Tuesday or Wednesday, where he's going to pass the "Fix-it" bill, which also has some changes to the way student loans are distributed, kind of moving from the banks to the federal government. So we'll see that midweek. And there will be, of course, media coverage of that.

But talking about some of the other things on his agenda, it is going to be tough. There is a lot on the agenda, you saw how tough it was to pass health care, this took about a year. The process took about a year. And it is going to be very, very difficult. There is not a lot of bipartisan feeling right now in Congress. I don't think that Republicans are going to play ball with much on this...

WHITFIELD: Except one wonders while it was difficult, it was a year, might this victory for this White House mean that there might be, I guess, a little bit more ease going forward. STEINHAUSER: Well, at least with his supporters, among Democrats and some independents who lean towards the Democrats, there is a lot more enthusiasm now that the president has gotten this victory. But Republicans have been pretty clear over the last week that they are dead set against a lot of these other items on the president's agenda and I don't think you're going to be seeing a lot of cooperation in the halls of Congress and, of course, all of this is happening as we're building up now towards the midterm elections, the battle for Congress, the governorships. It is going to make the partisanship even uglier -- Fred.

WHITFIELD: Paul Steinhauser, thanks so much. Good to see you in Washington.

STEINHAUSER: Thank you.

All right, dimming the lights around the world. That's what millions of people are expected to do for an hour, just an hour today. We'll find out how impactful that just might be.

(COMMERCIAL BREAK)

WHITFIELD: Rainy, nasty day in the central plains. Our Reynolds Wolf is tracking the weekend forecast for us -- Reynolds.

(WEATHER REPORT)

WHITFIELD: OK, thanks so much. It was, what, just two weeks ago we were doing the whole daylight saving time and now this. Turning off the lights. I'm going to tell folks about this.

Darkness cutting a path across the planet. In more than 100 countries, millions of people, are expected to mark Earth Hour today, dimming their lights at 8:30 p.m. Local Time. Landmarks will flip the switch as well including the Empire State Building and the Eiffel tower. The event is aimed at raising awareness about global warming.

All right, windows broken out or shot out. People's lives are simply being threatened and gas lines are being cut as well. All this over the new health care bill? Where does free speech cross the line? Our legal guys will be weighing in.

(COMMERCIAL BREAK)

WHITFIELD: A look at our top stories now. Nine-and-a-half years after 9/11, a stalemate over rebuilding efforts at the World Trade Center site may be ending. Government agencies and a developer have reached a tentative agreement on financing. Construction started four years ago on a memorial, transportation hub and one of the towers at the site. Several other buildings are still on hold. The agreements would clear the way for construction to actually begin.

And General Motors is recalling 5,000 heavy duty vans because of an engine fire risk. They include GMC Savanna passenger and cargo vans made this year. If you have one, GM says stop driving it and park it away from buildings and other vehicles. The company is calling for a halt in production and sales until it finds a fix.

And a leading civil rights figure, Dorothy Height is in a Washington, D.C. Hospital. There is no word on her illness, but a friend of hers says she is in stable, but serious condition. Height, who turned 98 just this past Wednesday, worked alongside such civil rights pioneers as the reverend Dr. Martin Luther King, Jr. and just last month she attended President Obama's summit on race and the economy. More top stories in 20 minutes.

All right, I think it is time for a little legal segment with our legal guys. Let's talk about health care and the challenges now. The president signed this health care bill and already, gentlemen, we're hearing calls to repeal it, and the president says, "Go for it." So should they go for it?

Avery Friedman is a civil rights attorney and law professor and Richard Herman is a New York criminal law defense attorney and law professor.

Good to see you, gentlemen.

AVERY FRIEDMAN, CIVIL RIGHTS ATTY: Hi Fredricka.

RICHARD HERMAN, CRIMINAL DEFENSE ATTY: Hey, Fred.

WHITFIELD: OK, I'm going to begin with you, Avery, since you're one of the experts on constitution law and we're talking about many who say they're going to repeal it because it defies state constitutional rights, mandating that states would have to extend health care and people would have to have insurance. Is there a legal fight here in the works?

FRIEDMAN: Well, there is a legal fight, but the legal fight, but the legal fight, Fredricka, is going absolutely nowhere. The theories that are being advanced by various states and federal courts are basically theories which have been rejected by our federal courts including the Supreme Court for 70 years. The problem, Fredricka, is that the expectation being created by these suits, I think, create a false hope that this -- this legislation is somehow going to evaporate, coupled with violent remarks by legislators. The question is, is that creating additional incitement toward violence.

WHITFIELD: And when we hear already, you know, Richard, there are something like 12, maybe more attorneys general who are saying they are onboard with challenging this legislation, we're also hearing from at least one attorney general who says I'm not going to do what my governor asks me to do. I'm talking about Georgia, Governor Perdue, says to this governor that we're going to challenge this, but the -- says to the attorney general, but the attorney general, Thurbert Baker had this to say about why he's standing his ground. Let's listen in.

(BEGIN VIDEO CLIP)

THERBERT BAKER (D), GEORGIA ATTORNEY GENERAL: As the attorney general, I get the right to say what I believe is the law in Georgia. And the governor is, in fact, asking me to go out and to sue the federal government over health care reform. I have looked very extensively at the question of whether or not there can be a lawsuit in this case. Now we've looked at the constitution. We've looked at everything, I believe that you can look at in terms of case law to make this decision. And I would tell you, after going through all of that analysis, I've come away with the conclusion that there is absolutely no legal basis upon which to file this lawsuit. And that if you do it, it's going to be a terrible waste of taxpayer money.

(END VIDEO CLIP)

WHITFIELD: That was in an interview this morning with our T.J. Homes. So, Richard, I wonder, there have been some discussions about whether this attorney general actually violated state constitutional law by defying the recommendation or order from the governor. Is that the case?

HERMAN: Fred, this possibly could be the case. He could have himself -- he may have to resign from office or he may be terminated from office because of this. But I think the rational he's used, the foundation that he used is absolutely right on. We talk every week about these lawsuits that are being brought. Yes, anybody can sue anybody. But do you have a chance to win? Is it founded in true principles of law and the attorney general was right on, I applaud him, I applaud him for his courage.

WHITFIELD: OK. Let's talk about Oprah Winfrey. Many would say she's got a lot of courage. And apparently this former headmistress of the school in South Africa that Oprah founded, perhaps she has some courage too, right? Because she was trying to take Oprah to court over defamation, some words that she says were unflattering that Oprah expressed about her. But the two ladies find themselves in court and Avery, what happened? A settlement.

FRIEDMAN: Actually, you know what, and it happened outside of court. Oprah happened to be in Africa and she hooked up with her former headmistress, Miss Mzamane, and good for them. Women got -- put the lawyers aside, got it all worked out. Actually it was likely it was going to get resolved anyhow. This thing was set for a legal showdown this coming Monday. There is a settlement. The basis of the case was that Miss Mzamane couldn't get a job, the fact that she got a job, so it was the right thing to do to resolve it, no doubt.

WHITFIELD: OK. And so, Richard, case closed in that case, right?

HERMAN: Well, that's why she's the big O. That's why she's one of the most brilliant business women...

WHITFIELD: It think you kind of called it. It was going to happen like that.

HERMAN: Yeah. I mean, she's so brilliant, she's so sharp. She knows this case should be settled and that's exactly what she did. I mean, it was -- People should stand up and applaud her. I mean, this is why she's worth $2.4 billion according to "Forbes." Really, great move.

WHITFIELD: All right, let's talk about the former celebrity socialite Anna Nicole Smith and what has been the longest estate battle, seemingly, of all time. And so now, apparently, Avery and Richard, her daughter, Dannielynn, is not going to get anything? What happened? Avery, you first.

FRIEDMAN: Yeah, she's going to wind up with a great big nothing. Which is not a surprise. A panel of three federal appeals judges ruled this week that the jury in Texas, which originally decided that Anna Nicole Smith gets nothing, essentially said the lower federal courts were wrong, the three-judge panel said the Texas jury was right. It all goes to the estate of J. Marshall's son, Pierce, and the estate is worth over $1 billion.

WHITFIELD: Wow. But zero to her family.

HERMAN: Right. The ninth circuit court of appeals basically spanked the bankruptcy court judge and said you had no right to undermine the state probate court decision. There was a jury, there was a fact-finding hearings that took place. They made it clear that he was competent when he drafted his will, the last year of his life, leaving everything to his son, and therefore the bankruptcy court overstepped its boundaries, it should have given that full force in effect that decision and they can say they're going to go to the Supreme Court like everybody else does, but here it comes like Carnac on Johnny Carson, (INAUDIBLE) denied very quickly.

WHITFIELD: Oh boy, well that Marshall family fought hard. They worked really hard on this one. It sounds like they got their way.

FRIEDMAN: They all did. But you know what? It is not over. I mean, we'll have another five years to talk about this, I'm sure.

HERMAN: Yeah, but you know, Fred...

WHITFIELD: I'm exhausted thinking about it.

HERMAN: Anna Nicole was with him for about a year, a year-and-a- half and she got about $7 million from him. So...

FRIEDMAN: That's all. Just $7 million. She wants $300 million or the estate does. Won't happen.

HERMAN: Not happening.

WHITFIELD: OK, well, we're going to talk more. I'm going to have you back, we're going to talk about Gilbert Arenas. I don't know this was a surprise for you all or not, on the sentencing and the outcome here. And we're also going to talk about the state of California, marijuana, for more than just medicinal use. Potentially. Don't get excited, folks out there, just yet, still got another hurdle or two, right? Our Avery and Richard will be along with more on both of those cases. And more. Thanks, guys.

All right, the widening sex abuse scandal in the Roman Catholic Church. It's spreading across Europe and landing on the pope's doorstep.

(COMMERCIAL BREAK)

WHITFIELD: Sexual abuse allegations against the Catholic Church are piling up. The latest revelation just coming to light, the founder of a Catholic order in Mexico abused minors and fathered three children. That's the accusation.

Well, the religious sect says the Vatican concluded he was guilty in 2006 and decided to forgo a hearing and allow him to retire. And the Vatican denies newspaper reports, one of them saying that the pope was still Cardinal Ratzinger when he apparently knew a priest in Germany was allowed to resume his duties even though he was being treated for pedophilia.

Well, victims accused the church of a cover-up and they want more transparency.

(BEGIN VIDEO CLIP)

BARBARA BLAINE, SURVIVORS NETWORK OF THOSE ABUSED BY PRIESTS: We believe at this point, he should open up the files of any sex crimes that he has at the congregation for the doctrine of the faith and turn all those records over to the police, and also tell all the bishops across the globe to do the same thing, and to make clear once and for all that all predator priests should be removed from ministry immediately.

(END VIDEO CLIP)

WHITFIELD: OK, so a lot to talk about, whether it's about what took place in Mexico, let's talk about what happened or allegedly happened in Germany while he was archbishop. So, let's bring in our CNN senior Vatican analyst John Allen in New York. He is a senior correspondent for the National Catholic Reporter, which is not affiliated with the Catholic Church.

Good to see you, John. All right, well, let's ...

JOHN ALLEN, CNN SENIOR VATICAN ANALYST: Hey, Fred.

WHITFIELD: ...begin with these accusations that the pope as archbishop while in Germany overlooked or swept under the rug some accusations that there were popes -- there were priests who were abusing children. The "New York Times" first reported it, others have reported it since. The Vatican came out with a response, but is that enough? What more could the Vatican do?

ALLEN: Yes, Fred, I think in many ways, this story is -- for the pope is sort of like a nightmare from which he can't wake up.

I mean, the Vatican has tried to put some distance between this case and then Cardinal Ratzinger, now Pope Benedict, saying that even though this priest came into the future pope's diocese, even though he was put into another parish where he went on to abuse other people for which he was actually criminally convicted in 1986, that the pope wasn't informed, that he wasn't plugged into what was going on and therefore, the suggestion being it's not his fault.

But, you know, your question is is that going to be enough? I think the plain answer to that is no because in some ways, the question of what did the pope know is a red herring. I mean, the point is it happened on his watch in the archdiocese in Munich at that time.

WHITFIELD: So, what -- who will be pressing ...

ALLEN: The buck stopped at his desk, and therefore he has to take responsibility.

WHITFIELD: Well, who will be pressing him on that question because we know, you know, it's relatively easy for the Vatican or a pope of, you know, of any decade to simply resistance answering any questions. What kind of a pressure will be applied to this pope as a result of maybe his openness?

ALLEN: Well, Fred, I think the practical answer is exactly what we are doing right now. I mean, we live in a different age in which the kind of media scrutiny to which leaders of all sorts, including religious leaders are subjected is, you know, much, much higher than it's ever been.

I mean, even if internally, the pope's closest aides and bishops around the world weren't applying pressure for him to deal with this, externally in the court of public opinion, it's just going to be unavoidable because what's in question now is not merely the Vatican's sort of corporate response to the crisis, but it's the personal moral authority of Pope Benedict XVI. And if he wants to lead the church out of this mess, he's going to have to respond to these questions.

WHITFIELD: Well, you know, it's interesting because just last week when you and I were talking, we were talking about the letter that this pope extended. And you had very succinctly put it that this is a pope that many are praising for being a lot more open, doing more than any other pope as it pertained to the sexual abuse cases.

And I wonder if what these accusations are saying right now, questioning his moral authority, as you put it, if that kind of, you know, erodes some of that praise that so many were quick to give him.

ALLEN: Well, I think what's intention right now, Fredricka, in some ways is the pope's past and the pope's present. You know, since his election as pope in April 2005, actually the five-year anniversary will be falling next month on the 19th, in that five-year span of time, as pope, I think many people would give him fairly high marks in many ways.

I mean, this is the first pope to embrace zero tolerance policy on sex abuse, the first pope to meet with victims, the first pope to sort of break the Vatican's wall of silence and all of that. But what is now of course under question is what about before he became pope? What about his five years as archbishop of Munich, what about his 25 years as a senior Vatican official? And, you know, I think the trajectory of this story is that when this scandal first exploded in the States 10 years ago, it was very hard for many Catholics to admit that the church had made mistakes, and they've had to learn how to do that. I think now, it is hard -- now Catholics can do that, but what is still hard for them to do is admit that during his past, the pope himself perhaps made mistakes and I think now that's the vocabulary they're going to have to learn.

WHITFIELD: So, he'll not only be pressed to talk about his mistakes, but even these other more updated cases that we're now learning that are coming to light, the case of the Mexican, you know, Catholic order and the sex abuse and the fathering of the children. You have to wonder how far is this pope willing to go?

ALLEN: Yes, although on that particular case, Fred, that's one that's already -- that's been well known for some time. And actually, this priest in question ...

WHITFIELD: And that wasn't under his watch either?

ALLEN: Well, I mean, actually it was. I mean, the priest in question, Father Maciel, who is the founder of the Legionaries of Christ, this was one of the early cases in Benedict's papacy. The accusations against him had been hanging around for a long time and the perception was that the guy was untouchable because he was connected at the highest levels.

When Benedict was elected pope, almost immediately this priest was yanked out of ministry and because of his advanced age, they didn't go to a full trial. But they ordered him to lead a life of prayer and penance, which in Catholic insider circles, I mean that was tantamount to a finding of guilt; it was a signal that Benedict was serious. But the point is he's not going to be able to stand on all those positive accomplishments until he also gives a full accounting of his own past on this issue.

WHITFIELD: John Allen, fascinating stuff. Thanks so much and I will be talking again about this.

ALLEN: Sure. Thank you.

WHITFIELD: All right, a lot of people desperate for cash resorting to selling marijuana. Well now, the cash-strapped state of California is actually looking to cash in on pot, potentially.

(COMMERCIAL BREAK)

WHITFIELD: All right, basketball star Gilbert Arenas was sentenced to two years of probation in a felony gun case Friday. The Washington Wizards guard will spend 30 days in a halfway house before serving 400 hours of community service. The judge said he believes at his core, Arenas is a good, decent man.

We'll have another look at the top stories in a moment, but first let's bring in our legal guys again because I think this is a perfect opportunity to talk a little bit more and dissect this Arenas sentencing and clearly, Avery and Richard, his celebrity did mean that he was cut a break.

Richard, did you see that he would get -- is this a relatively lenient sentence? I'm saying yes.

HERMAN: It's extremely lenient. I mean, the prosecution wanted at least three months incarceration. He didn't get one day of incarceration. His lawyer did a brilliant job in convincing the judge that Arenas will turn his life around, that the guns in question were not loaded, that he did have a license in Virginia, and the judge weighed very heavily on these facts.

I mean, he's in the second year of $111 million contract. But, Fred, you have to remember, this is not the first brush with the law concerning weapons for Mr. Arenas. He's had one in the past. Next time, there's going to be no forgiveness.

WHITFIELD: So I wonder, you know, Avery, if this lighter sentence that he got because, you know, he was staring at possible jail time, this lighter sentence, does this in any way kind of jeopardize this law that D.C. is trying to enforce?

FRIEDMAN: I think that's a wonderful question. I'm dumbstruck with the result. I mean, the truth is that Gilbert was looking at 20 years because of a prior gun charge. And the fact is that this law is very, very clear. Judge Robert Morin looked very carefully at the information submitted. I think this is as brilliant in terms of the defense as Johnnie Cochran and O.J. I am stunned at the result.

And you know what, I think what you have to think about here is sort of maybe be a little streetwise. If you are caught and you don't have the ability to hire the former United States attorney for the District of Columbia in defending you, maybe you're not going to go to jail for five years or 10 years or 20 years.

WHITFIELD: Yes.

FRIEDMAN: I think it's the incorrect result. I understand it, but I do not think that justice is served in what we've seen.

WHITFIELD: And I wonder if the flip side is you have a lenient sentence like this, but maybe a lot comes in return. He uses his celebrity to reach people in a much grander way through halfway house time or this community service. Is that one way of seeing it?

FRIEDMAN: That was the argument. It was, look, we represent a really good-hearted knucklehead who serves the community and we will -- he will continue to be a good-hearted knucklehead by contributing money and time to the community, therefore even though the law says he should go to jail, he doesn't have to in this case.

WHITFIELD: OK, well, let's talk about California where right now, you don't have to go to jail if you're using marijuana for medicinal purposes. But now, there's talk that this could be a cash cow in California, cash-strapped California ...

FRIEDMAN: Yes. WHITFIELD: ...that maybe it should be legalized. Wait a minute, how serious are we about this, Richard, in terms of seeing some, I guess, real evolution in the use of marijuana in California?

HERMAN: Yes, in 1996, the California voters passed the medicinal marijuana laws and allowed it to be prescribed for medical purposes, and you know, this could be the natural progression. I mean, California, on teetering on bankruptcy. If they pass this in November, if the voters vote it in, they'll generate projected $1.4 billion of revenue for the state and they'll save money from all of the prosecutions that they've had against people utilizing marijuana against the law.

However, if it does get passed, Fred, in California, we're not sure it's going to, but former Governor Brown just went out against it, but if it does get passed, it's going to be a big problem dealing with federal laws and how federal laws apply to state laws. Federal will trumpet. There's going to be problems in California if they pass it.

WHITFIELD: All right, and then, how about the whole transporting of. Somebody from a neighboring state decides to visit California, par take, take advantage of, you know, this law, Avery. But then, you can't necessarily -- or how do you enforce -- you know, you can't necessarily take this across state lines if it becomes law, OK, in California, right?

FRIEDMAN: Yes, I agree with that. By the way, 56 percent of Californians seem to be in favor of the idea. Three-hundred-thousand law enforcement officers, by the way, are against it, at least that's what they're saying. But, yes, how do you enforce it? Some -- look, you have an opt-out, local communities don't have to abide by that directive, but you know what, if we know anything in watching CNN, the No. 1 issue on the mind of Americans is the economy; $20 billion in debt, this generates, as Richard said, $1.4 billion. I think it's going to pass.

WHITFIELD: Oh, OK. Well, let's talk about America's sweetheart Sandra Bullock and everyone knows by now she helped her husband Jesse James gain custody. And now, they may be splitsville or at least we know there is trouble in paradise. So potentially, what could happen to that custody agreement, Richard?

HERMAN: Yes, Fred ...

WHITFIELD: Since she was, you know, very influential.

FRIEDMAN: Right.

HERMAN: Yes, she was. I mean, she won the Academy Award for best actress. And now, she's looking at, you know, a nightmare scenario, a horror scenario for her. The custody was premised on her stability and her relationship with her husband and now, if their marriage is dissolved or he leaves her, that stability is not there anymore.

WHITFIELD: He leaves her? You mean if she leaves him.

(LAUGHTER)

HERMAN: Yes, she leaves him. Right, I'm sorry. Yes, yes, yes, no, no, please, by all means ...

WHITFIELD: Yes, I know.

HERMAN: ...if she leaves him, which she has done already, she's not -- she never adopted this child.

WHITFIELD: Yes.

HERMAN: She has no legal rights to visitation or anything with this child.

WHITFIELD: Oh, my. Wow, Avery, this really could get heart- wrenching and heartbreaking like we don't know.

FRIEDMAN: Well, I don't -- you know, again, I have to speak on behalf of my gender worldwide, I don't know what's the matter with men, but -- I mean, and also why would a woman marry someone named Jesse James? I mean, maybe this was ...

WHITFIELD: Oh, come on.

FRIEDMAN: ...a foregone conclusion. I don't know, but it's a mess.

HERMAN: I hear there's a lot of reasons for that.

FRIEDMAN: And she suffers and the children may suffer, quite seriously, yes.

WHITFIELD: All right. Well, Avery, Richard, thanks so much. As always, we enjoyed the legal segment with you all. Hope to see you next weekend.

FRIEDMAN: Absolutely.

HERMAN: All right, Fred.

WHITFIELD: We've got some new images we want to go to right now. Let's head back on the political trail. There's Senator John McCain and you see a familiar person there, was his sidekick for a good while he was campaigning for president. Well now, she's helping him, former Alaska Governor Sarah Palin, now campaigning on behalf of John McCain.

Let's listen in, in Tucson, Arizona.

(JOINED IN PROGRESS)

SEN. JOHN MCCAIN (R), ARIZONA: ...in our nation's capital. By the way, it was historic. First time in history that a major reform has ever been enacted on a strictly partisan basis. First time in history that a major piece of legislation has been enacted with the overwhelming opposition of the American people.

The American people, my friends, the American people will be heard and we'll repeal and replace.

(CHEERING AND APPLAUSE)

MCCAIN: And we'll stop -- we'll stop these sleazy Chicago-style sausage-making that went on behind closed doors.

(CHEERS AND APPLAUSE)

MCCAIN: We're going to stop the Louisiana Purchase and the hundred million dollars for a hospital in Connecticut of your money. We're going to stop those sleazy deals. We're going to stop the sleazy deal that was made with the pharmaceutical companies that's going to increase the cost of prescription drugs to every American citizen.

You know, the president, eight times, eight times in the campaign said he would have CSPAN cameras in, CSPAN cameras in to find out who's on the side of the American people and who's on the side of the pharmaceutical companies. We know who's on whose side. It's the smarmy, sleazy, behind the back room deals that the American people don't want and they want replace and repeal, repeal and replace, repeal and replace.

(CHEERS AND APPLAUSE)

MCCAIN: So, we Republicans, my friends, we in the opposition, we Independents, we all Americans are going to say yes, we want tort reform. Why don't we have tort reform? Why is it that doctors have to practice defensive medicine? It's because the trial lawyers control that process in Washington, my friends.

This year, we could save $100 billion in -- if we had tort reform so that doctors would not practice defensive medicine. So that the trial lawyers wouldn't make millions and millions of dollars and we could still protect the patients. They're doing that in the state of Texas, by the way. We could -- Texas, good.

(LAUGHTER)

MCCAIN: We could have -- we could have, my friends, Americans, be able to go across state lines and have the health insurance policy of their choice. We could reward wellness and fitness. We could treat those with pre-existing conditions by getting pools together so that insurance companies can bid on caring for them.

We can expand the ability of small businesses that generators of jobs in America to move together and negotiate with the insurance companies. We can do all these things. That's why we've got to repeal and replace. Repeal and replace.

(CHEERS AND APPLAUSE)

MCCAIN: Like Sarah said, they're saying that we're the party of no. They're saying we're the party of no. My friends, on this health care bill, we're not the party of no. Like Sarah said, we're the party of hell no, hell no, hell no.

So, let me say again, this is all part of what's going on, out of control spending, taxpayers' dollars being spent. $1.4 trillion debt this year, $1.5 trillion debt next year, $12 trillion in debt. My friends, they're spending money like a drunken sailor and the bar is still open and it's going to stop and we're going to stop it with the earmarking.

Let's have a little straight talk, OK? We Republicans lost control and lost elections because we let spending get out of control. We got mixed up in all this earmarking and this Abramoff scandals and people went to jail. We can't ever do that again. We have to say to the American people we will stop, we will stop this earmarking. We will stop this pork barrel spending because we have committed generational theft.

The greatness of America, the greatness of America is about the fact that every generation of Americans has handed off to the next generation a better nation than the one that we inherited. I cannot tell you, my friends, that that's the case with the way we're doing business in Washington, D.C. today.

So, so, what do we need to do? We need to begin the fight. First, we're going to challenge this law constitutionally. It is not constitutional to force every American citizen to buy any product.

(CHEERS AND APPLAUSE)

MCCAIN: And I'm proud of our legislature and our governor who stood up and said we can't afford this. We can't afford this. We can't afford to have our patients on access thrown off. We can't afford the increased costs in an already very severely, terribly distressed economic situation.

And we're going to then, after we challenge this in the courts, as that moves on, then we're going to register people to vote. We're going to get them out. We're going to continue the tea parties and the demonstrations, and the message to Obama and Harry Reid and Nancy Pelosi is replace and repeal and replace, repeal and replace. Stop the pork barrel spending.

Now, let me just say -- let me just say, my friends, two things. One, I'm so proud of the men and women who are serving in the military. I am so proud of the members -- I'm so proud of the members of the Arizona Guard and Reserve that time after time have gone to Iraq and Afghanistan and served with courage and bravery.

And now -- and now, my friends, in the last three months, not a single American service member has been killed in Iraq. That is -- you won't see that in the media, but we have succeeded. They just had an election. It's a messy election. Remember, we had a messy election back in 2000. But it's the only country in the whole Middle East outside Israel that there's a real contested election. Maybe the neighbors can learn from the example of Iraq. In Afghanistan, my friends, we will succeed. We will succeed if, if the president of the United States will stay. We are going to stay the course, not say we're going to get out. We cannot cut and run from Afghanistan. We cannot allow Afghanistan to return to a base for attacks on the United States of America.

So, we have never had a more professional, better equipped, best trained, more motivated military than we have today. Recruitment and retention are at the highest since they've been since the beginning of the all volunteer force.

So, I want to thank our veterans who have been the example for the young men and women who are serving today. The proudest -- the proudest moments of my life was the ability to serve with men and women in the military. And also, the next time you see one of them in uniform, just go over and say thanks for serving. That's all they want. Just say thanks for serving.

So, my friends, I believe -- I believe as Chairman of the Armed Services Committee, which I will when we gain majority of the United States Senate, that I can -- that I can address the secure needs of this country. But the needs of Arizona today is the economy and jobs and jobs and jobs and jobs. I can be effective. I will fight for you. I will fight for a balanced budget amendment of the Constitution. I will fight to stop this spending. And I need your vote and I need it and I will be grateful for it. And I want it. And I work for you.

(CHEERS AND APPLAUES)

MCCAIN: And I know this is a tough race. I intend to earn every single vote. And with your help, my friends, I will have the greatest honor of my life and that is the ability and the honor of being able to serve the most beautiful state in America, again, in the United States Senate.

Thank you, and God bless. God bless America. Thank you.

(END OF COVERAGE)

WHITFIELD: All right, Senator John McCain there trying to maintain what he hopes to be his advantage, maintain his seat there in Arizona, campaigning there in Mesa, Arizona. And a familiar setting, wasn't it? He had his former sidekick, former Alaska Governor Sarah Palin by his side. She had apparently just spoken prior to John McCain speaking. She's out campaigning for him throughout Arizona. Then, she heads to Searchlight, Nevada where she'll be joining the Tea Party movement as they try to unseat Senate Majority Leader Harry Reid.

All right, much more straight ahead on politics and other news throughout the day. We're going to go to "YOUR MONEY" after this.

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