that gets filtered down to them that behind the scenes there is a president who wakes up every morning and at the top of his list is thinking about and implementing measures that will be in the best interest of middle class families who are trying to succeed, who are trying to live out the american dream. . x -- >> we are talking about recovery and possibly the first hurricane of the season. the effect that could have on all of these local economies up the coast, the most densely populated part of the country, as well as the pressure it could put on the insurance industry and infrastructure, could you our primaryt? >> concern right now, michelle, is making sure that citizens who are in the path of the storm are taking the necessary precautions to prepare for the storm before it hits. it is very important for citizens to understand that they should be following closely the

instructions that are given to them by local and state officials responsible for issuing evacuation orders and things of that kind. repairing for the storm in vance and listening to -- preparing for the storm in advance and listening to a weather report and following the instructions of state and local officials is what is most important. in terms of the broader impact, we also want to make sure that fema is doing everything they can to support state and local efforts, and that when it comes time to recover and if necessary, build again from the storm, that we can do so quickly and efficiently. i think that fema has a remarkably strong track record when it comes to assisting state in rebuilding after natural disasters. that is what we are working on right now. in terms of a longer economic consequences of a storm like this come i would hate to make any projections. either meteorological or financial, as far as the impacts

of the storm. but we will be watching very carefully. you've heard the president say many times that we know community's two are affected by destructive events like this, that the president will stand with and the american people will stand with these communities. texas with the immigration situation, and the president's visit to texas, there is a lot of anger down there. you hear a lot of anger growing in a lot of communities as well as congress. the expense that it is costing the taxpayer, how does the white house address that anger with these events that are now happening? we addressed that in a couple of ways. the first is, the president is committed to enforcing the law. and enforcing the law means that

when there are apprehensions made at the border, particularly of children, or dolts traveling with children, they need to make sure that the basic humanitarian -- adults traveling with children, they need to make sure that the basic you mentoring needs are provided for. that is why the president has asked for resources from congress to open up tension facilities across the country -- detention facilities across the country where these individuals can be house inhumane conditions -- in humane conditions. we were also discussing infect ankle bracelets and things of that nature that would, again, in a humane way, allow enforcement of the law. one of the reasons we are asking for additional resources is we theselike to process immigration cases more efficiently through the legal system. certainly, those who are apprehended are entitled to due bycess, and it will be given the due process. we also want to make sure that

the system is functioning efficiently. there have been those individuals apprehended at the border. we are looking for resources to bring to bear additional immigration judges, asylum lawyers tond ice process these cases more quickly. and we are asking for congress to give the secretary of homeland security additional discretion as he enforces the law. and in some cases, that is likely to mean after this due process has run its course, that those who do not have a legal basis for staying in the country will be returned to their home country. >> does the administration agree with the fact that the law works differently depending on what country they are coming from? >> that is the law and there are interpretations elated to that. what this administration is seeking to do is to make sure we are rigorously following the law, while also seeking greater authority for the secretary of

homeland security to use his discretion. and in some cases, more quickly and efficiently removing people who have gone through the due process of the immigration system and returning them to their home country. let's move around just a little bit. iraq, kurds in northern they were about to change their stats -- status from semi autonomous to fully autonomous. [indiscernible] what is wrong with letting the kurds breakaway and form their own nation? >> we have seen those reports that you're referring to. increased interest among the kurds for some autonomy, or at least a referendum that would allow them to vote for their art enemy. their autonomy. the fact is, we believe that

iraqis stronger if united. that is why we continue to is strong iraq that and unified. to face way for iraq the threat posed by isi i'll -- come together and set aside sectarian divisions and focus on the best interest in the country. we are hopeful that kurdish leaders will play a similarly constructive role in making that happen. in the same way that we are appealing to the national interests of sunni and shia leaders to do the same thing. >> [indiscernible] militarily and economically far more stable than what we are seeing from the government in baghdad? it is difficult to say from

here. suffice it to say, it is in our best interest and for all of the citizens in iraq to come together to face the threat, and that includes kurds, sunni, and shia. i'm not surprised to hear that there is some speculation or analysis from different quarters that might suggest that one group might be better off standing on its own. but it is the policy of this administration and this country that, again, iraq will better whether the threat --weather the threat posed by isil if they stand together as a country. >> [indiscernible] against requests [indiscernible] when will we have more information about the content?

>> the president has directed his team to repair an executive order -- prepare an executive order that would allow him to prohibit federal contractors from discriminating based on sexual orientation or gender identity. that is an order that is still being drafted. i would not want to speculate on the contents of that order until it is finalized. >> [indiscernible] correct again, i'm not in position to indicate to you at this point -- >> again, i'm not in the position to indicate you at this point what will be included in the executive order. it has not been finalized yet. >> there are two executives orders [indiscernible] can we expect that both of them will be on the same track? >> i don't know whether or not they will be signed at the same time. i'm not in the position to offer you any updates in terms of the timing of those executive orders that have been widely discussed now.

but as soon as we have an update, we will a you know. mark. >> [indiscernible] naturalization. on the fourth of july, the president has the opportunity -- had the opportunity to talk with us in the rose garden earlier this week where he talked about how appropriate it would be for there to be a commander in -- an opportunity for the commander-in-chief on independence day to naturalize those individuals who are in this country legally and have signed up to join the military to defend this country. that is a pretty strong testament to the values held by those immigrants. and giving them the opportunity to be naturalized and get their official u.s. citizenship on independence day, i think, is a

pretty compelling story. we will have more information about those individuals who would be naturalized tomorrow. but i continue the president is genuinely looking for -- i can tell you the president is genuinely looking forward to it. >> on the budget committees you said the president has no plans to look at the report next week. what message does the president send i stay away from what he is calling a humanitarian crisis on the border? >> the first and would say is that senior officials have spent a lot of time in the last week at the border to assess conditions there. the commandant of the coast guard and other senior officials of fema traveled to the border region on june 20 and they had the opportunity to visit facilities as well as lackland air force base, where some of those who had been the pain -- those who had been apprehended had been detained.

novalis was there on june 25 where he reviewed customs and border facilities, again, to assess the situation on the ground. the ability of officials to process those who had been apprehended. this time secretary johnson and secretary burwell to south texas theyn -- on june 30 where took a tour of the facilities and participated in discussion at the lackland shelter on lessons learned, challenges, best practices for detaining these individuals. the cep commissioner earlier this week traveled to mcallen, where he participated in a news conference and delivered a message to families in central america that are sending their children -- putting their children in the hands of some of the criminal networks that have sprouted up to transport children to the southwest border is not a good idea.

the point in reviewing all of that is to make clear to you and your readers that senior officials in the ministration have spent a lot of time at the border. others the president and on his team are concerned about what is happening there, but also making sure they have clear, up-to-date assessment of what exactly is happening on a regular basis there. and how the additional resources that have an devoted to that region are dealing with this migration wegal have seen. in terms of the president's trip to texas, the president is going know, spent some time raising money for democrats on the campaign. the president is also looking to the opportunity to spend some time in austin with a couple of folks that have to the letters, similar event cheaper dissipated in last week in minnesota. the president spent some time in

minnesota with a woman who had written him about challenges her family faced. and the president is looking for a similar opportunity when he is in texas next week. and on the emergency governmental, you said he would have more details on the next week. >> yes. and on the approach that the new authorities that the president asked them to expedite for the removal of some of these kids, has that cause you all to reassess the approach their? it is my understanding we have the good sense -- a good sense of what kind of authorities we would seek. in terms of the greater discretion buy the department of homeland -- greater discussion by the department of homeland security to deal with what is happening there. requireslaw

unaccompanied children from noncontiguous countries be treated if only then children from canada or mexico. -- than children from canada or mexico. what that authority would do is it would insure that as these cases are being processed through the regular due process channels that exist in the immigration courts, that they can be resolved more probably -- more promptly. and if it is determined that during the due process legal proceeding that the individual does not have a legitimate claim to remain in the country, then the secretary can exercise the to probably repatriate that person. that is important for a couple of reasons. one is, it is a certain way to deal with people in the immigration system, rather than having them languish in the system for a long time. the second thing is, it sends a clear and unmistakable signal to parents who might be considering putting their children in the in some a stranger,

cases a criminal, to transport them to the southwest border with the expectation that if they get to the border, they will be allowed to remain in the country. that is simply not the case. and it is further demonstrated of theexercise secretary's discretion to promptly deal with some of these cases. >> despite the fact that unaccompanied minors are coming across, and there are minors that are coming across with eligible,ers, are not there are those calling on the president to defend [indiscernible] would that work? far-fetched tos think the debt would be a

fireable solution -- viable for lucian. there are criminal networks -- a viable solution. there are criminal networks in south america and central america that are in a name -- a misinformation campaign. people pay them large amounts of money to transport them or their children to the southwest border with the expectation that they will be welcome in the united states, though they are not following immigration procedures. that is what we are up against right now. that is why you have heard the president, other senior administration officials, articulate very clearly what the law is and the fact that the law will continue to be rigorously enforced. but we will also enforce that law in line with our values and in line with the responsibility that is also mandated by the law to treat those who are apprehended in a humanitarian way. we are balancing a lot of different imperatives here.

but first and foremost, this it ministration is committed to enforcing the law. that is what we are going to do. theovernor perry said homeland security committee which is meeting in texas today, he has criticized the president diplomacy -- bad policy, for speeches and a general outlook of the people down there in central america that just says, come. and he believes that if the president were to receive and -- it, that -- to rescind it would not be the case. what does the president think about rescinding the dream act? x that is not going to happen. the truth is, it is hard to take seriously governor perry's concerns when everyone who takes

a look at this understands that if we were to send a clear signal about our seriousness of purpose when it comes to addressing some of the problems in our immigration system, then the easiest way to do that is to pass the commonsense immigration reform proposal that has already passed through the senate with bipartisan support. what i would observe is the most effective way for us to address this problem, and i think the most effective way to governor perry can help us if that is what he says he wants to do, would be to pick up the phone and call the republican members of the house of representatives, the ever present the state of texas, and tell them to support the bipartisan proposal to reform the immigration system that passed through the senate. that would have a tangible impact on so many of the problems that we see in our immigration system. not just the problems we are seeing at the border, although it would address them, because it would include significant investment in border security, that compromise proposal, but it

would also have economic benefits for communities all across the country. even a disproportionate benefit for some of those communities along the border, like those communities in texas. we would see significant and economic opportunity. it would create jobs and lower the deficit. it would also ensure that companies are not punished for following migration law. right now, there are a lot of companies trying to do the right thing and follow the current guidelines when it comes to hiring workers. they are often undercut by unscrupulous companies that are willing to pay people under the table and not follow immigration laws. we need to take away that incentive, and one way to do that would be to pass the conference of immigration reforms. there is a host of reasons this should get done all suck the only reason has not is because -- this should get done. and the only reason it has not is because senior republicans and of significant stature in a it a and has made

political effort to block that. and they do that without any particularly persuasive justification. why not send the message? republican said the dream act send a message to people in south america and central america, come, because eventually you can become citizens here. ou don't believe that? >> i disagree with that. there may be some who think there is a coded message in all of that, but the president in the united states in interview last week sent a clear, unmistakable, transparent message that parents should not put their children in the hands of criminals to transport them to the southwest border with the expectation they will be welcomed into the country. they won't. setting aside the fact that

putting your children in the hands of a criminal for a dangerous journey like that can have tragic consequences. that is not something that a parent should even consider at this point. the president has been unmistakable about sending that signal. you have seen the vice president and the secretary of state travel to the region to deliver that message directly. it has been communicated to the leaders of those countries, who have also been communicated that message to their children. we have been transparent about how the law will be applied in these cases. those whoo me that might be complaining about the are more's actions interested in landing political blows than they are in trying to solve this problem. chuck. >> [indiscernible] it sounded ambiguous and then eventually you said that the ameland secretary is making

clear that these children will not be able to stay. they will be deported. it will take time. but they will be deported. message needs to get to honduras, guatemala, and these places. why doesn't the president unequivocally sit in front of the camera and say, look, these kids are going to get deported. don't do this. this is dangerous. they will not be able to stay here. whatever anyone is telling you, it's not true. and maybe only the president can send that message. >> i think the president was pretty direct when he made comments to george stephanopoulos at abc when he was asked specifically about this. george asked him very directly about whether or not parents should send their children to the southwest border with the expectation that they will be welcome here. the president was clear in saying, do not send your children. the president delivered that message unambiguously. law has been part of the

and it was echoed by the vice president when he traveled to the region, and by the leaders of the country. >> [indiscernible] >> all i can say about ambiguity is that the law will be applied and there will be due process. it would not be appropriate for me to say how those claims will be processed. but the law will be rigorously applied. and to ensure that it is rigorously applied, we have asked for more resources to have prosecutors and judges and other officials to more efficiently processed these cases within the confines of the law. and they will be vigorously following the law. and we have even thought additional authority that will be wielded by the secretary of homeland security so that when those cases have been processed, those who do not have a legal claim for remaining in this country can return to their own country. >> you are spending some on this ad campaign.

can you tell us more about it yeah, -- about it? that gil crilly caskey, the director of the cep, was just down in the region talking about this. he will have more details. >> are they using his image, his voice, his words? >> i don't know what kind of plans they have for the campaign, but you can check with them. >> [indiscernible] >> there are probably a lot of important things i don't know. >> neither party has gotten what they wanted him what they claim would jump start the economy in the last three or four years. does anybody deserve the credit? think the president feels vindicated that his economic contributing to this economic recovery?

that theis no doubt president believe some of the economic policies we have put in place in the last 5.5 years have been treated to some of the economic growth we have seen. there is no doubt about that. what we have said all along is that the goal of these policies was to support the private sector's recovery. this is not a situation where the government can go in and do it for the private sector. what we need is we need american entrepreneurs and is as owners -- and business owners and workers to go in and do what they have done. it is only by the hard work and grit and determination of the american people that we have enjoyed the success and made the progress that we have made a stop what the president wants to do is capitalize on this progress and make sure that this recovery is not just flowing to those at the top, but the middle class. that is one of the reasons the president is very strongly supportive of risk -- raising the minimum wage. if you're working full-time, you should not have to do that in poverty.

thepresident wants to lower cost of a college education to give more middle-class families the opportunity to send their kids to college and get the skills they will need to succeed in the 21st century global economy. >> this has been an uneven economic recovery. more that welot can do to make sure all of the benefits of our strengthening economy flow to the middle class. because the president believes if we are going to sustain this economic recovery over the long term, then we need to grow the economy from the middle out, and you cannot do that if all of the benefits of the -- of the recovery flow to the top. there are those in the middle-class are benefiting from this recovery. the president wants to make sure that we build on that progress. and that is by job training, raising the minimum wage, investments in infrastructure benefit, butt term also investing for the long term economic straits -- strength. there's a lot that we can do. the president does not think we should miss this opportunity to expand opportunity for the

middle class. >> it comes at a time of the highest rate of washington dc -- dysfunction and gridlock. thatis sending a message the left washington does the better for the economy echo -- for the economy? >> i think the message it sends is that it is an indication that these crises are not created overnight and not solved overnight. there needs to be a long-term strategy, coordinated, to strengthen the economy. what the resin has been in the last 5.5 years is put in place the pillars -- what the president has been doing in the last 5.5 years is to put up late the pillars of that recovery. all of these are key components come a supporting the kind of foundation the private sector needs to lead the recovery. and we have seen our economy bounced back. the president is not surprised by that. one of the reasons he has so much optimism about the american economy is that he knows that

there are american entrepreneurs out there that have all kinds of great ideas that can lead to the creation of small businesses and eventually grow these businesses into large businesses. but there are a lot of american workers out there that are not fully utilizing the skills they have to benefit the economy. we want to capture the potential and doubled down on the progress regarding made. that is why the president is so determined to both try to work with congress where we can to implement other policies that will benefit the the class, but when necessary the president will not hesitate within the confines of the law to move unilaterally to get that done. >> on that point, if you still have more than 26 million people you talk to jobs, advocacy groups and they say the unemployment number for young people is about 15.2%. if the economy is strengthening summit and the recovery is getting stronger, as you say, why are there so many people still looking for full-time work?

in no small part to republicans blocking economic ripple -- economic proposals that would expand economic opportunities for the middle-class. the president has put forward commonsense ideas that traditionally earn their support in the past and republicans now are blocking. these are things like raising the wage, making critical investments in infrastructure, closing loopholes that benefit only the wealthy and connected, and proving job programs that lead -- improving job programs that lead shortly to work, making education more affordable. these are all the things that would insure middle-class families are benefiting the economic recovery. those benefits would be magnified if we can put in place some of these commonsense policies. >> on immigration, when you said the president said the law would be rigorously followed, a couple of weeks ago there were numbers

about who actually shows up at the border and how many stay with relatives and stay in america. do you have a better sense of those numbers now? how do you know that the law will be followed when some of these folks may end up staying in america? >> each of these cases is unique and what we would like to do is make sure that we are surging resources, in terms of immigration judges, ice prosecutors, and asylum officials, to make sure we are processing these claims could clean and efficiently. when they are ultimately adjudicated, and if those individuals after going through due process are found not to have a legal basis for remaining in the country, then the secretary of homeland security can act using his discretion to send them back. that is a principle that applies to adults, but also a principle that we will apply to -- where necessary -- >> do the numbers back up that is what is been happening in

them -- in recent years? collects the laws are enforced under this president. what we are seeing is an increasing backlog in processing these claims. there are those who are detained and given notice to appear in court. in many cases, they are subjected to things like alternative detention where they wear an ankle bracelet. the backlog is too long. it is also not a good way to enforce the law. we want to do it quickly and efficiently and effectively, all within the confines of due process. by adding more judges and prosecutors and asylum officials to the case, we can make sure that we are following due process. but also enforcing the law. >> i want to go back to the texas trip on immigration. the president keeps saying publicly he wants to get out of the white house bubble. here is his chance. as you sick and he's going to meet with some real folks and talk to them about the economy -- as you said, he is going to

meet with some real folks and talk to them about the economy. he has a chance to get out of the bubble and look at the unitarian crisis. how do you defend that? -- the humanitarian crisis. how do you defend that? >> i defend that by saying there are many in the administration who have spent a lot of time on this. >> the president himself goes there and he needs of families, hold their hands, talks to them. this, thishe do time? >> he gets a very good sense of what is happening in this region. and they are focused on the problem. he gets a good look at how resources are being used to effectively administer a judges -- justice. of president is well aware how it's going. and the trip and he's taking to texas is for a different purpose

, both to conduct political activities that he does on occasion, but also spend some time talking to someone who wrote a letter about how the president's economic policies can benefit middle-class families across the country. leslie. >> [indiscernible] autonomy, how much does i can't locate -- how much does that complicate your message? [indiscernible] what is the message from the white house? ofthere has been a lot dialogue between senior administration officials and political leaders in iraq, including kurdish lyrical leaders. our message to -- kurdish political leaders. our message to them is the same. the beste it is in interest of all the citizens in iraq for political leaders to come together and set aside sectarian divisions, set aside their own clinical ambitions, and focus on what is best for

rock. and it is the effect -- best for iraq. and it is the opinion of this administration that they have an inclusive governing agenda and use all of that to oppose the threat by isil. >> on the border issue and the president not going, when the is in the situation, is he getting live pictures of the border? is he getting visuals of the border? >> i know there have been media outlets who have been granted access to these detention facilities along the border. we have been pretty transparent. canink the american public see firsthand both the challenges that are posed by this search, and the legal migration that we have seen, but they can also see what the federal government is doing to try to address the challenges that are posed by the surge.

we have also seen frequent visits by the administration officials. the president is getting a good sense of what is happening on the ground and how effectively resources are being deployed to confront the challenges. >> the reason why people are asking for them to go to the border is because it is tangible for him to see. is he at least getting visuals ?rom these persons part with the premise of your question. i think some are suggesting that he go to the border when he is in texas because they would like to play politics and actually try to at -- rather than actually try to address some of these challenges. but those who have a purer motive, like you, -- [laughter] -- i would just tell you that the president is comfortable with a very granular conditions

that he has received about conditions on the border and what the federal government is doing to meet these challenges. he is also interested in finding out whether or not this surge in resources has been helpful, whether it has worked. and whether we are able to enforce the law more efficiently and at the same time meet the a sick humanitarian -- meet the basic humanitarian needs of those who appear at the southwest border. we have said many times that we are a nation of laws, but also a nation of immigrants. and there are values associated with that. we want to make sure that as we as -- as we enforce the law that we do so in line with our values. >> another issue. ivan is in africa -- biden is in africa. could you talk to me about the africa visit and is that a lead up to what is happening here next month? ofa detailed readout activities, encourage you to

check with vice president biden. i know that dr. biden has left a couple of days ago for her trip. she spent some time at local health clinics and spent some time talking about health education, particularly among women in africa. and this is an important part of communicating directly to the people of africa. the investment that the united states seeks to make in their countries, there is an opportunity for us to form an important partnership with them as they build the economy and build up and improve the living conditions in many of these countries. the united states wants to be a partner with them. that is an important message of dr. biden's trip and it will be discussed more when african leaders are here in washington next month. >> [indiscernible] the president not going to the border because it would be political. since when is it not political when he goes and visits an average american?

>> i was addressing those who are criticizing the president for not going to the border. many of them, if not all of them, are focused on politics and not solving the problem. if they were committed to solving the problem, in the case of the texas governor, he could probably be pretty useful. i hear he is a pretty persuasive fellow. he could probably pick up the phone and call some of the republican congress members from texas who are standing against immigration reform. if the governor were genuinely concerned about solving some of the problem is that exist on the border, the most impactful thing he could do right now is republicanhose members of the house of representatives to stop blocking commonsense language -- commonsense legislation from coming to the floor. yourt's go back to [indiscernible]

it has been the position of the administration since the conflict with isis began that a unifieds to be government. but now it is not happening. he is going after the ice is fighters, as he says. what is the message of this government? what has the president said to him or others? >> it is the vice president that has been in regular touch with prime minister maliki and other political leaders in iraq. what we have encourage them to you pointhere is, as out, a process and the iraqi government -- constitution for the formation of the government. it is not moving as swiftly as we would like it too. there is no doubt about that. time is of the essence right now, because there is a serious threat to the -- the third purity -- a serious threat to the security situation there right now.

other world leaders have been pressing the iraqi leadership not just come -- to come together at the time and place of their choosing, but to come together quickly because it is important for the future of her back -- of iraq. and once that government is formed, it is important that the government pursue the kind of inclusive agenda that makes room for every citizen in iraq. that they have a stake in the future of the country. that will also be required for the security forces in iraq to be strengthened. the security forces need to reflect the diversity of the country. when you have a unified political leadership, you have unified security forces. we are confident that iraq can meet that threat, but they won't if they do not act quickly to form the government and pursue an inclusive in jeddah -- inclusive agenda. it was said that they could

work in cooperation with iran and that the u.s. would support that. general dempsey said today that it is not impossible in the future we would have reason to do so. is that something the it ministration supports? >> what we have said and what has already occurred is that there has been at least one conversation between senior american diplomats and senior iranian diplomats on the sidelines of the p5 plus one to talk about the situation in iraq. we have made clear this point that there is no contemplating military cooperation or coordination. we also will not been gauging a conversation with iranians -- be engaging in a conversation with iranians about the future of iraq over the heads of the iraqi people. the future of the root -- of iraq ultimately needs to be determined by the occupation, the citizens and their elected leaders. -- by the population, the citizens of iraq and their

elected leaders. but i have already been ready to admit that there is clearly overlapping interests here. interests ofthe iran to for their neighbor to be wracked by sectarian divisions. that kind of instability is not what you want to have on your border. and it is serving up economist italy that the united states would like to see in the region. not the kindainly of instability that the united states would like to see in the region. i want to be clear that our ongoing diplomatic conversations with iran right now are focused on the nuclear issue that is hopefully going to be resolved by the p5 plus one. >> [indiscernible] out would not rule additional conversations between american diplomats and iranian diplomats, but they would be separate from the ongoing p5 plus one talks that we are focused on right now.

>> listening to the present comments on the marketplace [indiscernible] department jointly with the fed and other regulatory agencies in 2011 issued a joint proposal under the dodd frank law to take these.to restrict since then, it has been wishing on the back burner of the sec. is there an effort to group -- to push the sec to do something on this proposal? earlierink i mentioned that the president did not have any specific regulation or law in mind when he made those comments. what he was referring to was the need for his administration an independent regulators to continue to be vigilant about threats that may emerge in our financial system. we have a rapidly evolving

financial system and we need to make sure we have a regulatory regime that can meet the risks and challenges that are posed by the dynamic system. >> is he satisfied with what has been done so far? >> actually, the president is proud of all the progress that we've made. but is he set us -- >> is he satisfied that it is enough? is he satisfied with the amount of progress that there has been so far? >> it is important -- and i don't think i understood it. it is important to recognize that the passage of wall street reform in this first couple of years of visit mistress will go down as one of the finest achievements of this administration. -- first couple of years of this administration will go down as one of the finest achievements of this administration. the president ran for office

because he wanted to make sure that middle class families had a voice in washington, d.c. and when it comes to things like financial regulations, too often, the voices of mainstream investors and middle-class families were drowned out by special like wall street firms and big bank. of theenormously proud progress we've made and we do now have a financial system that continues to thrive. i am certainly no expert on the stock market, but it has increased significantly since the president took office. >> but he sounded like he was saying that he clearly thinks more should be done. i don't think there is any more fair reading of his remarks. >> what the president was saying was that we need to be vigilant as our financial system evolves. in terms of guarding against risks that pop up, there is such a dynamic financial system out there that evolves quickly. we need to make sure we have a regulatory regime that gives that dynamism of our capital

markets the opportunity to thrive, while preventing bubbles and other risks from rapidly emerging in causing the whole system to tumble. let me give you a couple of examples of things the president believes should be part of the kind of things that should be addressed. one of those things is the role of shadow making and the role that they play in our financial markets. the president also believe that we need to protect the integrity of our financial markets from abuses in high-frequency trading. the president also believes we need to have a seamless application of regulations in our international markets. those of you who have traveled with us to g 20 meetings over the years have heard countless briefings with senior it ministration officials who say that the president and other senior policymakers in this administration have been in regular communication with our counterparts in other markets

about the importance of also raising standards for their financial markets. after all, we cannot just raise the financial standards in this market when you have such a globally connected financial system. alleed to raise standards across the globe. that has been the focal point of some of the ongoing policymaking efforts in this administration. again, we are constantly vigilant and on guard as we monitor the financial system and make sure that risks don't crop up that threaten the entire financial system. and that means hard work that is done on a daily basis by economic policymakers and the administration, but also work that is done on a daily basis at the independent financial regulators who have frontline responsibly for dealing with some of these issues. according to the last meeting

with secretary kerry and prime minister maliki, he was telling maliki that the united states does not believe that all of the fighters in iraq belong to isil or other it -- other extremist organizations. is this the reason why the united states is hesitant to strike? make anyesident can decision about any sort of -- i'm sorry, i'm so focused on the last question. any decision that the president makes about military action 80 rack will be -- action in iraq will be focused on the coordination with the parties there. what you have seen in recent days, the announcement of deployment of additional troops to iraq with the sole purpose of advisory roles that is the reason he has assessed thus far.

the other thing that the president has said, and he has said this motto cleanly then i will, -- then i will -- he has said this more eloquently than i will, that he said it is incumbent upon the iraqi leadership to form a unified government. because that is what is necessary to address the security issue in iraq. any sort of military solution will only temporarily address the problems they face. the ultimate solution will require a governing agenda by a diverse political leadership in iraq that unites the country in this face of the threat posed by isil. [indiscernible] actual airstrikes against isil. [indiscernible] >> i think the president was

pretty clear. i would refer you back to his comments. they still apply, about how he receives and perceives the the -- how he perceives the situation. willort of military action need to be partnered with a commitment from iraq's political leaders to do exactly that. there is no political solution to this problem. there is a nomadic and political solution to address -- there is a diplomatic and political solution to address the challenges they face right now. but when it comes to iraq, the president called -- >> when it comes to iraq, the president called the king of saudi arabia yesterday. the the president discussed the reports that the king might be funding isis? >> i cannot give you any details on that call other than what was included in the readout. in terms of funding, one of the

things that was mentioned in the readout is that there was a significant donation made by the kingdom in support of ongoing humanitarian efforts in iraq. that is something the president greatly appreciated, and it demonstrates the kind of regional approach that we think is going to be important. again, it is important to countries in the region that the kind of instability that started out in serious and has spilled over into iraq does not continue across the region. it is certainly one of the reasons why it is important to saudi arabia that stability be restored. but it also underscores the generosity of the kingdom in making destination. >> we are heading into a long weekend. calendar, ihe house think seven legislative weeks for -- before election day. the president has been talking how little he expects from congress or has gotten from congress. at this point from where you are

standing, what does the president believe he's going to get in terms of bills passed by both houses of congress before election day? anything? thingse are a number of to learn about in context of the job numbers today. the economic proposals that the president has put forward raising the minimum wage, improving job training, making college education more affordable, ensuring pay equity across the country -- there are a number of proposals that have traditionally earned bipartisan support that the president hopes they will act on. there are two others that come prioritiest will be when congress returns. the first is a supplemental funding request that julie talked about, in terms of making sure that the necessary resources are available to meet , kospi the surge of illegal migration that we are seeing at the border. the second one -- caused by the surge of illegal migration that we are seeing at the border.

the second one has to do with a highway trust fund. this additionally has enjoyed bipartisan support and we hope the case this time. because congress has failed to act previously. i have a sneaking suspicion that many of you will be here tomorrow. there will be no briefing tomorrow in honor of the holiday. what better way to demonstrate my patriotism other than to not brief, reich echoed -- right? on monday, the -- the white house will host a group of teachers for lunch. the president will be joined by secretary of education arne duncan. on tuesday, the president will welcome nato secretary general anders fog rasmussen to the white house. the president looks forward to discussing with the secretary-general the crisis in ukraine and reassurance measures

for our nato allies, improving the allied defense assessment, and further work on bolstering nato's network of partners, and nato's post-2014 noncombat mission in afghanistan. the secretary-general's visit underscores the vital importance placed on nato as the cornerstone of europe. on wednesday in denver, the president will attend an sec fund raising event. on thursday, the president will travel to dallas for an evening event. and then he will travel to austin texas biplane -- by playing for a dnc event. will deliver remarks on the economy alongside the letter writers i mentioned earlier, before returning to the white house. we will have additional details about the president travel in

colorado and texas in the days ahead. and on friday, the president will attend meetings at the white house. i should point out that tomorrow the president has a couple of independence day activities. someone asked earlier about the naturalization event that will take place here. the president is looking forward to the opportunity to naturalizing a few immigrants to this country who have served in our armed forces. and tomorrow evening, the president will be hosting a barbecue and picnic for families on the south lawn of the white house. and later, they will enjoy spectacular fireworks display on the national mall. with that, a bid you a happy holiday. [captions copyright national cable satellite corp. 2014] [captioning performed by national captioning institute] >> jobs numbers for june came out earlier today with the unemployed rate dropping to 6.1% and 280,000 new jobs added.

house speaker john boehner commenting about those numbers. the house has passed dozens of jobs bills that would mean more paychecks and more opportunities for me to class families. in order for us to make real progress, the president must do more than criticize. from trade to workplace flex the ability, there is no shortage of common ground where he can push his party's leaders in the senate to work with us. onight on c-span, discussion the origins of the universe with remarks from columbia university physics are festered greene. --spoke about how scientists physics professor brian greene. he spoke about how scientists study it. here is more. [video clip] beginning, it was hot, really hot. and as the universe expanded, it cooled down. you can calculate how cold it about be today, and it is

2.7 degrees above absolute zero. that is the temperature of deep space, not when there are sources like stars nearby. but when you are indeed empty space, that is the temperature. but you can go one step further and not just calculate the average temperature, but how it should very from place to place. -- how it shouldvary from place byplace, and it should very 1000th of a degree. a tiny variation. temperaturethe variation in just the pattern that the mathematics predicts. >> what you mean when you call something the fabric of the cosmos? >> that is a hard question. , or ise really a thing it just a useful concept in order to organize our perceptions of our reality. you are over there. you are further away in space. the table is yet further. is the the vocabulary that allows me to articulate locations, or is it really a

thing you come nobody really knows the answer to that. -- or is it really a thing? nobody really knows the answer to that. in einstein's theory of relativity, i the see a thing -- i see a thing in that. stitched time are together. >> and they would exist even if othing else existed? >> that is right. and there has been a lot of debate about this. if you were to remove everything from space, the moon, the earth, the sun, everything, what would be left? would you have an empty universe that still has pace and time, or nothing? a good analogy is if you have an alphabet and you start to remove the letters, when you remove that last letter, what is left? is it an empty alphabet? not really. it is like nothing. the apple that comes into existence with the letters that make it up. -- the alphabet comes into existence with the letters that make it up. >> you can see more discussion tonight at 8:00 eastern.

tv in primen2, book time with hillary clinton on her new book "hard choices." and on c-span3, looking at the war battles of 1864. >> my first reaction was surprise, because i had worked for mr. story. i coached the clippers in the year 2000. he invited me to his daughter's wedding. i had no idea exactly what was going on. but also because of my know what he was complaining about. confused, not knowing exactly which set of facts mr. .terling stood behind and then when his words came out, it was obvious and shocking , and just disgusting, all of those things wrapped in one.

but the surprise of it, to find that type of sentiment in someone who relies on black americans for so much of his success and public profile, it was amazing. i cannot believe someone could have that much bigotry inside and think it was ok. >> july 4, a look at racism in sports just after 11:00 eastern. rate or comment exploring -- exploring the red minute with senior national -- nasa officials. discussions on gun rights in the personal recovery of gabby difference. >> recreational marijuana use has been legal in colorado for close to 18 months with washington state recreational use becoming legal july 8. the marijuana industry first major business meeting took place last month with several

hundred people gather to talk about industry challenges and future ballot initiatives legalizing pot around the country. hours. two >> our first speaker was stevie are in the low has fallen ill with the flu and has been unable to make it to denver. we are really excited. can thank him for taking it at the last minute. we have had the pleasure of working together for about a decade now. first the marijuana policy project and california and then founding a group right of round or before and cia. with the understanding, i think troy more than anyone almost understood early on that of americanew kind industry, profitable industry

that is a lyrically engaged and setting an example for how commerce can be transacted in the country with legal marijuana would change the world. would be putately behind bars for using the plant. he has been an inspiration and hasnd for the 10 years and been an honor to introduce troy. our first keynote speaker. give it up for erin smith. wow. wow. there's a lot of people here. this is pretty impressive. i saw so many chairs and i thought this would really be the great next american industry. we've been saying that for a long time.

now it seems that it's actually coming to pass. this is by far the largest number of people who has ever come to a business conference for this industry. thank you for being here and taking whatever risks you've taken in life to wind up here. we will find out more about that as we go forward. i just want to take a quick moment to collectively acknowledge the fact we are sitting on the soil where cannabis is legal. [applause] even though it's been well over one year since it has been through, it sends chills down my spine when i think about all the hard work and against all odds that was passed. now, everything becomes possible. when i started in this movement when i was eight teen, i was a marijuana policy project first volunteer in 1995.

basically through my life, most people have said i told them i wanted to make cannabis legal and they would say, "that will never happen. that's hopeless." they would proceed to tell me why all the reasons making marijuana legal -- pharmaceuticals, parents, whatever. a litany of lists why we would never make marijuana legal. then something happened a few years ago. almost overnight, the storyline

changed. then when i told people what i was working to do to make marijuana legal they would say it was inevitable. how did that happen? i think the commonality between those two approaches as they absolving the person of responsibility for doing anything. if it's hopeless, why do anything? if it's inevitable, why do anything? it's important to recognize it was not hopeless then and it is certainly not inevitable now. the inevitability is in everyone in here and everyone who cares about this cause. it is in their hearts and in their wallets. it's only inevitable if people put their desire and passion into this and continue to donate, take action, move the ball forward politically.

if you donated your time or money to many of the political efforts of the past, can you raise your hand? let's give these guys a big round of applause. [applause] thank you for your effort and your energy. the only reason there is now a market for legal cannabis where there is money to be made is because people have gone out against all odds work to change the future laws which will only be changed with more of the same. we have had just an amazing run recently. i want to of knowledge the recent house appropriations bill. for the first time, a body of congress has said something positive about cannabis by blocking the dea from spending resources forwarding state laws. it was amazing. even the most optimistic among us did not think it was going to pass this year. congress is always the last body to do anything.

but they did it and it passed by a 30-vote margin. people are really waking up and you know people are breaking up when members of congress are actually on your side. what politicians and elected officials are starting to realize is cannabis is a popular issue among their constituents. we will see more and more positive reforms. let's give a nice round of applause to our fellow activists and business people from the great state of new york becoming the 23rd medical cannabis state. [applause] finally. that has been a slog for many years trying to get that passed. it's good to know there is something there and i'm sure it will expand over time.

i also want to welcome minnesota from a 22nd state -- minnesota as the 22nd state from a few months ago. [applause] it's also worth mentioning -- well, it's a great thing but it's about uruguay beating the you asked to the punch on becoming the first country to fully legalize cannabis for adults. [applause] now it's not just here in the u.s. but it's spreading. the canadian market is opening up. it is across the world and it is just incredible. here's why. cannabis prohibition does not withstand the light of day. all we needed to do was ignite a conversation. once that conversation got ignited, it read -- it spread in living rooms and cocktail parties across the world where people realized cannabis was a reasonable adult choice with far less social harms than anything

else we let people do. and also with great and if it. i think it is remarkable moment in history we are all getting a chance to be a part of. it's not just a political thing that all three of these things we are seeing such a remarkable shift. we have some big, big things coming up just this year that could either continue this storyline that we are all building or it could send it in the other direction. there are three ballot

initiatives happening in november. oregon is voting on legalization for adults in november. we also have alaska voting on legalization for adults in november. and florida voting on medical cannabis. none of these three are a given. they are going to take a lot of energy and work and we have to win. we have to keep this momentum going. i thank you in advance for anything you are doing more will be doing to help make sure that we succeed there. one of the best ways that we can all make sure that we succeed there is by running great businesses, running businesses we can be proud of that understand all the stakeholders that are at play, consumers, neighbors, the communities that

we are in, the media, investors, etc. how you manage that will be just an incredible challenge and opportunity for this industry. it's not every day that a new industry just get started out of nowhere -- not that this is a new industry but a new, legal industry. we have an opportunity to build something that's different. not just a new industry that a new kind of industry -- but a new kind. make no mistake that our continued freedom of cannabis consumers around the world is dependent upon how we do business. they are watching. you know, it's only a small percentage of the population that consumes cannabis. we need the support of lots of non-cannabis consumers and may be people who don't even like it but are opposed that understand prohibition does not work. when it comes to marketing, when

it comes to labeling, when it comes to our ecological foot rent as an industry, these are things we'll need to make sure we are paying attention to in the frenzy or the green rush that occurring. just out of curiosity, i'm curious who's here. how many people currently operate a licensed dispensary, cultivation, or infused product manufacturer? great. how many people hope to do one of those things? great. how many people here currently run an ancillary business in this sector? how many people hope to be doing it? great. how many people here think you will be raising capital for your

business over the next year? or hoping to raise capital? and how many people are looking to invest in a business other than your own this year? great. thanks. it's just good to get a sense of who's here. i also like to say that money is one of those things that can really galvanize these people. if you are here mainly for money, that's great. i think a lot of people come to this industry only because of the economic opportunity but that is not what keeps them. what keeps them are the people,

the passion, the change we are making, the pie in nearing spirit we are building. this is different. your businesses are not like other businesses. i think it's going to be an interesting ride as we look at our different motivations for being involved in this sector. we learned that if you want something done in this world, you have to figure out how to make it profitable. let's just say hippies keep being right. they were right about renewable energy. we were right about organic foods. we are right about cannabis. look at renewable energy and organic food. these movements started because people cared about something.

they cared about the environment. they wanted to use renewables. they cared about the health of farms, the land, what we put in our bodies. it started out really small with a knack the best sort of flavor. but once they figured out how to have profitable business models around those ideas -- boom. now organic foods are everywhere. renewable energy is growing by leaps and leaps and bounds. i think that's what the cannabis energy -- industry is doing for freedom. every time we show communities they can raise tax revenue, that they can have businesses that provide benefits to their communities and investors can see this as a viable investment opportunity and entrepreneurs see this is a viable business opportunity, that moves things.

prohibition has been kept in place in partial part because of the profit being made by the people who make money off of depriving people of liberty. when you start a business where the outcome of your business is that people are more free as a result of your business, that's a very powerful, powerful act so thank you. sorry. i lost my train of thought. i want to talk a little bit about how i got here. as i'm doing that, if you can start thinking little bit about how you got here, then we will

compare notes. the way i got my start in this industry-movement, i was a senior in high school and some of my friends played a trick on me. i was consuming cannabis for the first time and i was always the paranoid one in the group, the friend like -- no, let's not do that. i was the one that was always nervous about these types of things. they played a trick and they had a security guard come and put me in the car. they came in and they were laughing. they put their hand on the receiver. this is back when you had to push the button down to turn the phone off.

at that moment, it hit me in my corner. it realized -- i realized i could not believe people were punished for this. they did not know that they were building an activist that day. here's the thing. for millions of people around the world, it's not a joke. it's not a joke. people are sitting in prison right now while we are here thinking about how to make money. we really owe it to them to make sure we do this right. to really make sure that we build the right kind of industry. back in 2010, i was the lead fundraiser for the marijuana policy project. i was raising money from high net worth individuals who were donating to change the laws and also high net worth people working in this industry in the dispensaries and such in california.

what i realized is that these two groups of people needed to know each other. a lot of people were just donating to change the law. they were not thinking about business opportunities but many had money to donate because they have been successful in other businesses. there were all these entrepreneurs who had great ideas and wanted to expand their businesses and wanted to do things in this sector. they did not know the investors. they did not know how to scale a business or put together business plans with financials and all this other stuff. every lies the one day i was like -- wait, these people need to know each other. i realized i could raise a whole lot more money as a peer. i set down with steve deangelo who runs harborside health center and he saw the same thing.

he had all of these people coming to him with different is this ideas. he had no way to invent the ideas and nothing for them to invest in. there's something here, but i already have a job. i brought him this idea in late 2009 and he immediately saw it. if you want to figure out what's going to happen next, figure out what steve deangelo is doing now. he has been just an incredible visionary for decades pioneering much of what we see today. usually people think he's crazy for doing it but then a few years later they are like -- aha. steve have the right idea. that was a real great affirmation for my idea because he was willing to become our first investor. we started this view then with the idea that the development of

a responsible, politically engaged, cannabis industry would lead to a day when not a single adult is punished for this plant. we've done a couple things. probably the most notable is our investor network. we had a big meeting yesterday at the denver center for the performing arts. we had over 250 accredited investors and doesn't companies pitching them. how many people were there? i'm impressed that you are up this early and i'm so sorry you had to hear me talk so much over the last two days. [laughter] it was great. over the last year, we've seen $12 million invested in a little over a dozen companies from these folks. it's really remarkable to see how it's been growing in the new waves of people who are getting involved.

the thing about being here in colorado is that there is this sphere we don't talk about. when we talk about the punishments, we tend to focus on the people who are caught and punished. perhaps the greater challenge is all of the people who live in fear about being themselves, like feeling they need to keep ink from their family members and these sorts of things. the freedom that people get when they walk into a store -- i heard a friend tell me a story that they locked into a store here in denver and went up to the counter and the person said, do you consume cannabis? um, yes.

[laughter] they are like, great. do you prefer -- >> that moment of randomly telling a stranger that you consume cannabis is a powerfully liberating act. the fear and society that pervades millions and millions of cannabis consumers we get to solve. i think one of the reasons we are seeing so much excitement about the market here is because in a lot of ways, they are not just dying cannabis. they are buying a taste of freedom. it's a really amazing opportunity to be involved in this. that was my story about how i got here and i wanted to check in with yours. close your eyes for a quick second. think about the first time you knew cannabis existed. think about the first time you knew someone had consumed it. inc. about the first time you realize that people were punished for this.

think about the first time you realized that was wrong. think about the time when you realized someone benefited medically from cannabis. think about the first time you realized there was a business opportunity in this. the answer to all these questions leading up is, in many ways, how i imagine you got here. i encourage as you meet people over the next few days that there is a thing that we do at business conferences. we shake people's hands and give the elevator pitch. you can have the exact same conversation 400 times, but it does not have to be that way. you can actually find out why behind what people do and it just gets so much richer. i think there's going to be a lot of really exciting opportunities.

i think the rays a huge agricultural explosion. we will see a lot of the knology coming out where cannabis will be leading the way. no one of senses over a plant like cannabis consumers and cultivators. we have underground botanists meeting up at the top plant engineers in the world than i think what they are going to create will just be awesome. i think we are going to see a lot more in leafly. we'll start seeing acquisitions in a lot of these ancillary businesses where there are companies that are very similar but in a non-cannabis space.

i think we're going to start seeing a lot more the first real acquisition of companies probably in the next few years and the most likely place that's going to happen is going to be the media space because it is the most protect it in the most easy to build them. i think that's what we are going to start seeing first. does a lot of money at the table right now and it's looking to find a waste. it's such a nascent energy -- industry. in many ways, it's too nascent. the money to build this industry is here. it's just a matter of figuring out which steps we need to go through. i think it's going to be really interesting to see what happens over the next couple of years as it rolls out.

i'm going to be on a panel -- actually, my colleague will be speaking at one about the art view -- arcview report. we found there is a 1.5 billion dollar industry in 2013 growing to $2.8 billion. that is 68% growth. find me another industry growing at that clip. find me another industry that does not have a single player at more than $100 million. her business. this is a rare opportunity for startups and small businesses to take a run at this before really big is mrs. start to come in. it's going to be fascinating. one thing you'll hear a lot about today and tomorrow in

conversations is about the professionalizing of the industry. it's great. we need to professionalize this industry. i want to kind of challenge that notion a little bit. i agree. we want to professionalize the industry. but it depends on what your definition of "professional" is. if professional is what people wear, where they went to college, where their last job was, sure. that can play a role. but to me, professional means you do what you say you are going to do, you honor the key stakeholders including the

businesses in the community. and you treat people with respect to matter how long their hair is. some of the most professional people i've ever had the pleasure of working with did not look typically professional. some of the least professional people i've ever worked with have looked like we normally think of when we think of professionals. i encourage everybody to open up the concept of what that means so that we can make sure we are building something that can be a new kind of industry that really embraces and we don't lose the lessons of this plant and the importance of the creativity that so many people discover through it as well. you know what? i got this message from steve

deangelo last night and i wondered high was going to close this out. as i was trying to figure out how to close it out, i read his message and i thought since this was supposed to be his speech, why don't i read what he wrote to me enclosing? i think it's shockingly fitting. i will read that now and then we will close. hello, my friends, fellow entrepreneurs, and investors. i would like to thank troy for filling in for my speaking spot. and to aaron for inviting me to speak. i would like to salute the voters, activists, and the cannabis community for their successful effort to create the first full access adult use market. may many more states follow your good example and soon. a sudden flu has robbed me of the ability to present with you in the room today, but i've prepared a brief summary of the talk i was going to give, the

cannabis industry as a social justice movement. it really could not be anything else given the inherent -- the origins of cannabis prohibition, which had nothing to do with the inherent qualities of the plant and everything to do with the people using it. the very first law prohibiting cannabis was passed in california in 1913 followed shortly thereafter by border states. those laws were passed as a racist reaction to the first great wave of mexican immigrants fleeing the brutal battles of the revolution that started in 1910. this was just the beginning of a long, tragic beginning targeting racial minorities and other marginalized people. it was those early laws and the myths that propelled them that inspired the theme of william randolph hearst national propaganda campaign. once they produced the desired result of federal prohibition, some of the very first enforcement targets were black musicians.

others were harlem that welcomed all races at a time when few if any were in a graded. -- were integrated. the decadence of hollywood was also targeted resulting in the arrest of robert mitchum and others. after jazz-loving beatniks acted -- picked up from african-american museums and -- musicians and passed it on to the hippies, cannabis laws provided cops of the great reason to hassle anyone with the wrong kind of clothes or hair cut. what started in 1913 has grown into a monster. just since 2001, 12 million americans have been arrested on cannabis charges. african-americans have an arrested at a rate four times greater that than white people. despite both groups having the same rate of cannabis consumption. our nation now imprisoned a larger percentage of its population than any other including north korea and the

majority of those arrested will suffer a lifetime of other damaging consequences including losses of employment, housing, various professional licenses. equal or even more serious social issue is the denial of the effective medicine to people whose lives depend on it. for many years, we believed cannabis was just eight pallet -- was just a pallet of medicine. that it made sick people better. now we know that it may have -- was just a pallitive medicine. it could affect arkansas is, -- parkinson's and alzheimer's. and the real criminals are not those that provide this assistance to those who need it, but those that prevents them from providing that help. anyone who has looked into the eyes of a mother whose child depends on cannabis will understand this instantly and we've not even talked about the tens or hundreds of billions of dollars wasted on cannabis enforcement or handed over to gangs and cartels which has been a force of robbery, a social

injustice passed on every american where the hundreds of people killed by police in the force --in the enforcement or those killed by gangs and cartels. our work to dismantle this engine of justice is bearing -- of injustice is bearing more fruit everyday as they remove criminal penalties and create new markets, each business will reclaim a portion of the dollars stolen by prohibition. as that happens as we build our , success, let's remember that our industry was burdened by a movement for social justice and -- was birthed by a movement for social justice, and we are dealing with many decades of struggles to deal with the laws and our future is inextricably bound with the cannabis policy reform movement. we must pass new laws if we are to gain new markets and the passage in other states and countries will not happen unless we find them and push them -- unless our industry funds them and pushes them forward.

i encourage you to embrace the future of our industry as a social justice movement. rarely have investors and entrepreneurs been handed such a completely underserved market. -- such a large, well proven, and completely unserved market. take advantage of the unique opportunity we have built for our families and justice in our society. i would be disappointed if all we did was create another successful moneymaking industry. i believe the early pioneers have the skill, dedication, hard, vision to do much more. -- and the heart and vision to do much more. i hope when we look back 20, 30, 40 years from now we can proudly say it is a new kind of industry with an ongoing commitment to social justice, and industry to set a new standard for others to live up to, and industry with an active congress. -- an active conscience. an industry that values doing good as much as creating wealth. it will not work unless we do it all together. if we make that commitment then

when we do gather in that room 30 or 40 years from now and we are congratulating each other on our success and wealth, we will be able to look in each other's eyes and claim the most valuable reward life has to offer any of us, the knowledge we left this world a little better than we found it. [applause] thank you, steve deangelo. thank you. i look forward to building the next great american industry with you. have a great conference. [applause] >> thank you, troy. can i ask our panelists to come up to the stage for the next

round. it's an honor to introduce the the codirector of the campaign and a longtime advocate for marijuana law reform in colorado. brian was the first chair of the board -- of the ncia and i think it was in this building three-and-a-half years ago that we founded ncia. in 2010, he was there from the beginning almost member number one if we had a numbering system back then. it's an honor and privilege to introduce mr. brian vicente. [applause] >> thanks a lot. it's really great to be here.

i've been a big supporter since the beginning. it really gives me great pride. when we started the organization, i think there were 10 of us or so and i feel like any time i see his staff, i swell with pride when they say they are up to 500, 550 dues-paying members -- barking]in the dea drug dog is on to us. [laughter] there's a party going on wednesday at my law firm. it's a fundraiser for the united for care campaign. that is the measure on the ballot this november in florida. i really hope we can win that. let's give them a round of applause. let's do it, florida. [applause] we will have an insider briefing about how the campaign is going. it's only about five or 10 minute walk from the convention here. please, head on down.

i missed going to give a couple of very brief comments at the beginning then we will turn over to our wonderful speakers. it's profound that we are here in colorado at this moment. not many people are aware of this but when marijuana became illegal of the federal level, -- back in 1937 at the federal level the first person arrested , under that federal law was a man named samuel caldwell here in colorado. it's phenomenal that colorado began the war on america on and -- war on marijuana in a way. he went to jail for three years for smalltime distribution. now it's really kind of the cutting-edge of where marijuana legalization and commerce is going. it is really wonderful to be here at this time. i was very involved in the campaign to legalize marijuana that passed here in 2012 and i'm happy to report it to been very successful in terms of how the implementation has been going. it's only been about 18 months

since we legalized it in the state. it's been about six months since we have the commercial system in place that you currently see for legal recreational marijuana. we don't have tons of data on how things are going, usage rates but it's important to keep an eye on teen usage, driving. the state has been good at tracking tax revenue. i think it's worth pausing on for a moment because it was just going into the hands of the underground market and cartels. now it is being captured by our state. we are not only using for public schools, but we're also using $25 million and we've already set that aside for things like treatment, prevention, youth education on marijuana. that is from the sale and now going into these positive things in our state. on top of that we produced over , 10,000 direct jobs in this industry. 10,000. that is pretty phenomenal

without many of them get health care. they are paid good, living wages. there's thousands of indirect jobs. all we do is marijuana law. there have been tons of job creation driven by these laws. besides that, we set aside about $10 million from the state medical marijuana program. to research medical marijuana. millions of people in our country really use medical marijuana legally, but the -- 130,000 that are on the colorado state roles. but the research has not always been there. we are setting aside a significant amount of money to fund actual research and see the positive is going on with medical marijuana. i wanted to just point out one or a two other things. i wanted to apologize in advance because my wife is 40 weeks pregnant. today is due date.

i have my phone here at the ready. if i have to run out -- let's give her a round of applause. [laughter] send the positive mojo. if i need to run out, one of my capable staff members will pop up. i think i should be ncia supporter of the year but it's -- for being here, but also, i think it is profound that we will have children that are born into a world where marana -- marijuana prohibition is a thing of the past. to me, it's amazing. [applause] my daughter will grow up thinking it does not make any sense. i can't believe that policy existed. it's like alcohol prohibition. we look back and it's nonsense how many people's lives were destroyed. it's almost impossible to count. this is a new dawn and him excited to be here -- i'm excited. i will turn things over to our speakers. we will talk about about the challenges as well as the positive vast active

ofpositive aspects legalization and their particular states. in case you were thinking of speaking out, you should not. -- sneaking out, you shouldn't. at the very end of when the gentleman speak i will ask them a tough question. is there a nexus tension threat to legalization? -- is there an existential threat? is there an issue that we are grappling with right now that if we don't get it right, then the pendulum swing back to prohibition? a lot of us are taking this for granted. we are going to be winning more, oregon, alaska, florida blah , blah. i think there are some real threats out there. how potentially do we address those? i think i'm going to start with washington, if that's ok with you? i will introduce our first speaker, john davis. he's the founder of the northwest patient resource center, a dispensary in seattle.

he also has been involved for years with an event i'm blown away by every time i attend, seattle hempfest. seattle hempfest. events ando a lot of seattle's is by far the most excellent marijuana event i've ever been to. hundreds of thousands of people. he's been involved in that since 1994. a projectworking on with the former president of mexico, resident -- president relation.x -- no with that, let's give a round of applause to john davis. [applause] >> thank you. come here and speak. the title is colorado and washington, success and challenges from the frontier of post-prohibition america.

post-prohibition, i think it's a little soon to be using this type of words. in thinking about this, i decided to lead with the successes we've had in washington. overall, the most important success we've had in washington, also in colorado, the psychological effect of simply passing legalization initiatives. no one at the time knew what that meant, if the federal government was going to respect .t building was a vote in was the most important event that happened in this industry since california legalized medical marijuana in 1996. it sort of forced the government hand. are in states now

violation of the single convention treaty. treaty allowsnal for medical and for research if you read the treaty. this is recreational. this is the first time this has happened and no one really knew how everyone was going to react. governmentseems the -- the federal government -- is willing to allow it to happen. parts of the government are not the notion ofrall legalization, which is being called the great experiment, .ill be allowed to continue since legalization, the vote on legalization which, in washington, is still a little theoretical,cal --

it has jumped between 10% and 15% for those in favor of legalization but now the polling numbers being around 56% to 58% of the entire country including wantingople in oklahoma out right legalization and over two thirds of those people in our nation one thing some form of legalization including medical. conversation is not just happening here. the conversation, just a cousin of the initiative's passing has been spread throughout the world. last week, they just had a special in australia that was of australia.nc. there are so many of these other countries looking at us saying -- wait a second.

the united states put this on us and now they are going away from it. the conversation is happening south of the border. a lot of people don't know that the drug war really impacts south of the border. if you look at the usage rates of mexicans, of drugs am a they have appear than we in the united states. the united states is one of the ont drug using countries earth. mexico does not have a drug problem. they have a border problem. they are on the border with a country that has a very -- that is a very large drug consumer. a lot of people don't realize direct confirmed casualties from the war on drugs since 1996. --0 of those confirmed children.

we have journalists that are kidnapped and killed. we have truckloads of beheaded corpses dumped on the side of the road but that's down there. we don't think of this as a true war because people are not dying here. the cartels know if you turn up bodies on this side of the border there will be problems. down there, apparently they don't care so much. we heard this claim before for years that it will never be allowed to happen. now we can pretty much put that behind us. now we can look at the other states. at thecan start to look path forward, what these votes did especially in the case of washington is create a framework, a scaffolding in which we can build on.

what's been done in washington and colorado is not perfect, but i've been working on drug policy for a couple of decades now and i've yet to see the perfect legislation. basically what has always happened is we have taken the small baby steps and shored up our position and taken the next step. steps isof those next faltering. it's not perfect. we take it up in the next legislative cycle. also what's been a success in washington is the legalization to force theing localities in washington to actually take this seriously and what it's going to take for zoning, what it will take for occupancy in usage. a lot of people don't realize just how important for businesses the localities are. they think it's legal, problem

solved. no, you still need to get into your localities. this has been forcing the hand and now they are beginning to figure out just how they will issue the building permit for the large-scale production of a schedule one substance. that brings us to the end of washington successes, unfortunately. [laughter] washington has a lot of problems. know, colorado is passing around a brochure where you can go within one mile and find some recreational cannabis. that's not the case from washington yet. washington has done some things very differently. for people in various states, i think it's really important for you to look at what happened in colorado, washington, and even in florida.

as you are going to the next , you of changing your laws can learn from mistakes that are made. we will get over these mistakes. smallust a process, a baby step forward. challenges. washington, when it was legalized dan kicked to the liquor control board and there it a lot of talk about what would look like, this notion of legalization, they did not want to think about it from a business perspective. at the time, it is big ad business. they are going to advertise to isr children and business just a bad. understandable. when the industry reached out to

the liquor control board and the powers that be, there were a lot of people in the community, what one of my colleagues calls, whack-tivists. they're very passionate but politically naïve people in the medical community typically. positivelyengaging with the process with the liquor they started accusing them of things and a number of other things, being a real pain, shouting, not really having a message. that really turned the liquor control board off. they went to the academics and

said, how do you do this? academics are not engaged in the business of cannabis. it's a tricky one. there's a lot to know in the business in order to keep your supply line right, in order to keep you on the right side of taxation. was to wait with what they called mom and pops. they did not want to have any capital requirements. they did not want to require any experience. they did not want vertical integration. the initiative forbids it. if we are on the retail side, we cannot grow our own. they did not want to necessarily give medical which does not have the same amount of regulation in washington as it did in colorado

a path to legalization. they ended up the property that was a sham, meaningless. people do not have to be tied to property. they could have listed kentucky fine.chicken saying it's the distance relationship is fine and they could change it later. then they ended up limiting the number of licenses per entity. aree are not inc. that likely to laura investment into a market. you are trying to keep three stores and you have all of these other challenges. it has made it a lot more difficult. growers where the 3's could have three tier

were they reduced the square footage and said you could only have one. they've taken a business and secured these facilities. they are holding high overhead and then you are playing against someone who has no overhead, no experience. waitse commonality was it if you can game the system. why would you not want to have money to help build your infrastructure. it just makes it more difficult. .hen the liquor control board they have consistently changed the interpretation of the rules. existing industry has had some sway but they decided they will take more of an academic approach. let thecolorado

existing medical go over. they were a lot further along with their localities and building permits. ofy had to create 70% everything they sold out of the retail stores so they had to get the building permits in place and they had that ready to go. that's why you saw colorado somelly roll out with product first. i cannot stress enough the locality role in implementation. in washington state, we are still in the process of going to the individual localities and working with them to get some sort of zoning, occupancy, and some sort of way to get building permits. with all of the bureaucracies. you have clean air, solid waste, fire, water, labor, department

of agriculture. a process with those people. they are nervous about standing out on the branch alone. they have to be worked with in order to figure out solid waste -- was is it -- what is it? can we put it on a train? can we treat it like any solid waste? is it hazardous? those questions are still being answered in washington. then you have the other factors. contrary to federal law, banks won't work with cannabis industry not even on the ancillary, not yet. e areax challenges with 280 immense. i'm still wondering how we are going to -- how retailers are going to manage to file compliance and not go broke.

we've achieved a lot. what we have to do in washington to let the system turned on july 1 and we will have to show a little failure. we are going to have to let the the system is not perfect. we are going to come back in and we will figure out what works, what doesn't, and we are going to make some changes. this is an ongoing process, as my good friend vivian says, the legalization is not an event but a process. thank you very much. [applause] >> that was a really great overview. we will turn it over to our other panelist from washington state then focus on our colorado

panelists. i wanted to focus on banking and the tax issues. those are two of the ork.erstones of ncia's we there's a panel tomorrow with steve i'm going to turn things over to her neck speaker from washington state. fromr next speaker washington state. i got to know him eight years ago when he was really doing some groundbreaking work with the king county bar association. as a young aspiring attorney, i noticed you were pretty not position a year -- putting out papers saying the war on drugs was a failure. i got the bar association --