>> great question, nanette. the state of washington has passed a very controversial law when patients get up to 120 milligrams of morphine, you are supposed to refer the patients to a pain expert to take a really thorough look at what is going on with the patient and what do you want to do. do you want to go higher before you take a really careful look at the options. >> that is not something california is considering. >> not that i know of. it is controversial in seattle. doctors tend to have a strong belief that they should not be told what to do in that granular sense. doctors have a lot of training. they want that autonomy. >> they want the freedom. let's turn to david. he has a question for you. >> hi, david. >> i want to look at the demand side of things for a moment. how much does the war on drugs, by drugs i mean, marijuana and cocaine and heroin. how does that play into the legal drugs and whether that increases demand for it or if it is exacerbating the problem? >> that is a good question. the answer i

nanette kincade was no >> there's no requirement she be here. number two, she wants to keep things as private as she can for herself, her family, her girls and that's what tom wanted. >> reporter: there's concern if the girlfriend that kincade's home and -- studio could be headed for default the judge thinks the property will be fine until they all come back to court again in august. the girlfriend says kincade's wish was for her to take that money and build a museum on the property. this battle looks like it going to be long, nowhere near being over. it will continue in august. amy hollyfield, abc7 news. >>> alarming new assessment by pg&e regarding its natural gas transmission lines. the chronicle reports pg&e has identified 239 of its lines as being at risk the same type of fail caused the san bruno explosion in 2010. the report commissioned by pg&e also points to more than 500 trouble spots on those lines spanning 48 miles. some of them are old, others were pressurized beyond legal limits withouting testing after. the lines pass through part

nanette kincade was no >> there's no requirement she be here. number two, she wants to keep things as private as she can for herself, her family, her girls and that's what tom wanted. >> reporter: there's concern if the girlfriend that kincade's home and -- studio could be headed for default the judge thinks the property will be fine until they all come back to court again in august. the girlfriend says kincade's wish was for her to take that money and build a museum on the property. this battle looks like it going to be long, nowhere near being over. it will continue in august. amy hollyfield, abc7 news. >>> alarming new assessment by pg&e regarding its natural gas transmission lines. the chronicle reports pg&e has identified 239 of its lines as being at risk the same type of fail caused the san bruno explosion in 2010. the report commissioned by pg&e also points to more than 500 trouble spots on those lines spanning 48 miles. some of them are old, others were pressurized beyond legal limits withouting testing after. the lines pass through part

we decided to change all of that by asking top designer nanette who manufactures all her clothing inork city's garment district to be their mentor. stephen and gregory, i want to introduce you to lanette who is very involved in our garment district. >> nice to meet you. >> amazing. >> the next day gregory and stephen got down to brass tax starting the morning off with a tour of nanette's new york headquarters and sitting down for a one-on-one conversation. >> you have to get in touch with the warning sign that is go off. oh, you see something that looks like a potential mistake and you bury it in the back of your mind and it comes back. you are like, oh, my god, i had that six sense about that. >> after getting much-needed encouragement and advice, they left with a rolodex of new exacts and optimistic about the future. >> you're going to do a great business manufacturing here in new york city. i know it. the facilities are here, you'll have more control. you'll be so happy and everyone will say the garment center whittling and ready and able to help you. >> oh, we are going to contac

the widow nanette kinkade was not there but her lawyer was. the judge continued to hearing till august 13. she said he wanted her to have his mansion and $10 million to establish a museum of his work. >> we believe that thomas kinkade had a crystal clear vision on an interactive museum for the display of his art. >> either it is not tom's hand or he was in a state where he couldn't understand what he because doing. it is pretty -- pretty much chicken scratch. >> the judge issued one ruling, keeping the matter in probate court. >>> we are following new developments in a hit-and-run crash that killed a 16-year-old boy over night, happened after midnight. as ktvu's alex savage reports, the highway patrol has a suspect in custody. >>> the collision happened after midnight. the chp says this while truck seared into the lane and slam -- veered into the lane and slammed into another truck and a teen was killed. the driver left the truck behind and ran off but not before checking on the teen. a witness pulled up moments after the accident. >> he came

nanette? >> well, 1.6 million state and hokeal government employees rely on cal pers. managers say they'll have to use due strategies. >> there is 1% positive. >> blame it on the european debt crisis and slowing of economic growth. the largest fund, cal pers made a 1% rate of return this year. rate critical because tax payers make up short falls whenever pun lick pension funds miss a mark. despite a 7.7 rate of turn cal pers acknowledges it will be asking for more money. >> in a year it will be adjusted upward two, years local rates will be adjusted upward. >> and local bankers were cue to crushing pension debt. just six years ago $1.5 billion went to cal pers thchl year, jumping to $2 billion. this is closer to 4% adding in pension. critics say that means less money for other things and point out spending is up00% and for uc and csu down 30%. it's in the constitution there is one of the first line items. >> this is very, very risky. >> there is almost nothing taxpayers can do to lessen their burden. and dooring good times californians pay little or nothing towards pen

nanette kincade has called pinto a gold digger, she is legally separated from thomas kincade, they were married for 28 years. today the two women will take their dispute to court. a judge is expected to decide who will be chosen to administer the paymenter's estate. amy hollyfield, abc7 news. -- >>> this morning, mexico's former ruling party is claiming victory in the nation's presidential election. after being on the sidelines the past 12 years. the latest results given reek kay nieto -- give enrique nieto 40% of the vote. [ unintelligible ] >> everybody knows that -- [ unintelligible ] new labor laws have to be put on the books. >> others think nieto is good for the u.s. and will improve cooperation. seen by older mexicans as a person who can bring about badly needed stability and reforms. >>> oakland police investigating a homicide near the oakland hills. officers responded 5:30 yesterday and found a man in his 20s inside his car. the man was shot a mile away. he managed to drive. the man was dead when police found him in the vehicle no word if there are possible suspects. >>> san fr

you know damn well that there were plenty -- that's what that designer from new york nanette i playedenty of american manufacturers who could have produced these uniforms for our american team. sandra is in colfax, washington. hi sandra. >> caller: hi, how are you? >> bill: i'm good. thanks for your call. what do you say? >> caller: well, you figure they've had about $25 to $30 of material in each uniform and it probably costs about $15 to $20 for someone to sew it together and then he they have that big logo as advertisement for ralph lauren. it seems like he's really making a killing. >> bill: yeah, he is making a killing. you're darn right. they probably -- $10 or $15 to put it together. that's probably maybe three times what they paid in china. >> caller: i was being generous. >> bill: exactly. the whole image of our team u.s.a. it's -- there have been stories -- i haven't seen them lately. but i've seen stories in the past about people with american flags, right. put up american flags and the american flags were made in china. come on! this is the time, particularly today, again

i want to bring in nanette lepore.ty. nanette, i was surprised to learn that 98% of all clothing brought into the united states is imported. is it really realistic, even though it really looks bad to have these uniforms made overseas, is it realistic to say that this should be made in the usa? >> it's absolutely realistic. i've been manufacturing in new york city for 20 years and we're working with factories working at half capacity. there are companies dying for this opportunity. not only is it realistic to do this one-off thing for the olympics but the factories could go on to continually manufacturer. >> but it's a dying breed unfortunately. as you admittedly point out, you say 15% of your clothing can't even be made here anymore because knitting mills are closing and those embellished garments are too expensive to make in the united states. the trend, as much as you'd like to keep your clothing made here in the united states, it's getting harder and harder to do so, isn't it? >> not necessarily. there are so many a

. >> reporter: nanette lepore is one of the country's top fashion designers.ave outfitted our e limb poon yeps head to toe in american products? is that realistic? >> absolutely. >> reporter: she says american manufacturers could have made the uniforms here, easily, and for less money. >> why shouldn't we have pride, not only in the american athletes, but in the american manufacturers and laborers who are the backbone of our country? what's wrong? why was that not a consideration? >> reporter: so, we reached out to ralph lauren and the olympic committee to ask. the committee responded, "the u.s. olympic team is privately funded and we're grateful for the support of our sponsors. we're proud of our partnership with ralph lauren, an iconic american company." not exactly an answer. but american manufacturers insist, like our athletes, they can compete. sharyn alfonsi, abc news, new york. >> and, by the way, if all the olympic clothing and mow memen were made in america, it could keep a billion dollars from heading overseas this year. >>> thank you so much for wat

. >> alina, thanks, we're going to talk with nanette lepore, she does 98% of her manufacturing work in the united states. we'll talk to her later this morning. >>> and back to our breaking news, we were talking about jp morgan and the q-1 and q-2 earnings reports. christine, walk me through what we're hearing? >> we know jp morgan in the second quarter logged a $4.4 billion trading loss and the company is saying if its first quarter, this is the numbers all right in the books. they've got to revise that too, there was $459 million less profit in first quarter because of that trading loss as well. a big gauge of the size of the trading loss, 4.4 billion is what they are logging in the second quarter and have to take 500 million in the first quarter as well. i'm going to continue to go through these numbers and jm morgan chase ceo jamie dimon is going to meet and that could last some two hours. he has to sit there and explain to angry -- analysts who are going to be reporting as pretty angry shareholders about why these losses happened. >> all right, christine, thanks. before i let you g