Updated

This is a RUSH transcript from "The O'Reilly Factor," January 04, 2013. This copy may not be in its final form and may be updated.

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O'REILLY: "Personal Story" segment. Tonight, new Miss Universe crowned a couple of weeks ago, and already is becoming somewhat controversial, but not in a bad way, at least in my opinion. Olivia Culpo, 20-year-old Boston University student, says marijuana not a positive thing. As you may know, Washington and Colorado recently legalized the use of pot, and in Denver a pot shop immediately opened up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's a ribbon-cutting for a whole new kind of club. This is what folks are doing at Club 64, club owners say is the first private pot smoking club in Denver.

UNIDENTIFIED MALE: Hundreds of thousands of people celebrating the new year with alcohol, and we wanted to be the ones to celebrate the new year with cannabis.

UNIDENTIFIED FEMALE: With the passage of Amendment 64, adults over 21 can possess a small amount of pot, and the people here believe their private club is legal.

UNIDENTIFIED MALE: Amendment 64 says you can consume marijuana all you want, but just not in public. So this is by definition private.

UNIDENTIFIED FEMALE: Members pay $30 to come in. They bring their own marijuana or share with other adults, but we're told no marijuana will be sold here.

UNIDENTIFIED MALE: You can bring your own. That's (inaudible) share and trade.

UNIDENTIFIED FEMALE: Denver police say they are waiting for guidance from the city attorney and district attorney to see if the club is in violation of any laws.

(END VIDEO CLIP)

O'REILLY: With us now, Miss Universe, Olivia Culpo. What did you think of that? Would you go to that club?

OLIVIA CULPO, MISS UNIVERSE: No.

O'REILLY: No way?

CULPO: No way. Not when it's legalized. I think that the legalization of marijuana tells people that it is OK, that it's harmless.

O'REILLY: Absolutely, that's what it does. There is no doubt about it.

But you are 20 years old, you are at BU, a lot of pot smokers at BU. You know how I know that? I went to BU. I didn't smoke pot there, but I know a lot of people who did. A lot of American 20-year-olds would say, hey, I mean, I want to do what I want, this is good, I want to get high. It's better than alcohol. How did you formulate an anti-recreational use point of view?

CULPO: I think that for medicinal purposes, it works. It works for society. It helps people with mental disorders, it helps people who are terminally ill.

O'REILLY: Medical marijuana in some circumstances. But I'm talking about this club where people just go to get stoned. You don't like it, why?

CULPO: Because it tells people that it is OK.

O'REILLY: But why isn't it OK?

CULPO: Because everybody has a different reaction to it. It's not -- some people get paranoid. It's been proven to increase schizophrenia even. There is so much about it that we don't know. So much about it that varies from person to person. And legalizing it wouldn't be -- would be telling us that it's acceptable, and it's not acceptable for a lot of people.

O'REILLY: Do you have any personal experience, friends who use marijuana, or bad experiences that you have seen in this kind of a context?

CULPO: Absolutely. I think you probably do, too. Everybody does.

O'REILLY: I have a lot.

CULPO: Everybody does. I think even the people at that club know that there are people that don't react well to this. And I think that if they were, for example, going on an airplane and their pilot had just used safe, legalized marijuana, you wouldn't feel--

O'REILLY: Well, there is that. But I mean, the reason I chose not to take drugs and alcohol as well is because I saw what happened in my neighborhood when all of this drug stuff came in, late 60s, early 70s. A lot of people got hurt by it. And now, the marijuana is ten times stronger than it was back then, and I know people who are addicted to marijuana. I mean, oh, it's not addictive -- yeah, it is. It's psychologically addicted, just like tobacco is. But it's interesting that you put yourself out there, because you are going to be criticized being a square and all of this. You know, Cranston, Rhode Island, a working class town, there is a lot of pot there, a lot of meth there. You know that. You're going to go back and they are going to look at you and go, you know, you don't care about that scrutiny?

CULPO: I don't think it's scrutiny. I think that the people at that club that are smoking legal marijuana know what I'm talking about.

O'REILLY: No, they don't. They think it's the best thing in the world. These potheads, they love it. Look at Willie Nelson. You know Willie Nelson, do you know him?

CULPO: Yes.

O'REILLY: He has got a book out that says this is the greatest thing in the world.

CULPO: For him.

O'REILLY: Well, did you ever talk to Willie Nelson? It's like talking to a fire hydrant. All right. Snoop Dogg says he wants to show kids how to smoke pot. You know who Snoop Dogg is? You know this guy?

CULPO: Of course, and I don't agree with that either. And I think hopefully a majority of Americans don't agree with that either.

O'REILLY: But Ms. Culpo, you have got to understand that the mentality on the other side is, there's nothing wrong with it, it's great, let's be stoned all the time. That is what it is. Americans more and more are going over to that side. That is why you got the legalization in Washington and Colorado.

CULPO: And that is why it's scarier than ever before.

O'REILLY: Are you going to make this a campaign, are you going to go out and tell young kids not to do it?

CULPO: I think that could work. I think I could definitely make a difference.

O'REILLY: If you believe it.

CULPO: I absolutely do believe it, and I think I could make a difference, but I still really do believe that at the root of -- I don't think that it will ever be legalized.

O'REILLY: Have you ever smoked pot?

CULPO: I can't answer that.

O'REILLY: Then that's a yes. And -- but obviously you don't want to do it anymore.

CULPO: No way.

O'REILLY: Do you drink?

CULPO: No. I'm under age.

O'REILLY: Well, 20. Yes, that's right. Well, you go to Finland, you can drink there if you want. But you know, kids drink, you drink. But it's not -- intoxication is not for you, right? Intoxication, getting drunk, not for you?

CULPO: It's definitely not for me during this job. While I'm an international role model, and especially in this country, where it is -- there is a drinking age, I need to respect that. Especially not only as a citizen of this country, but as a role model. I need people to look up to me and feel like they can look up to me.

O'REILLY: Well, good. I hope you do as much good as you can with your Miss Universe title. Ms. Culpo, it's a pleasure to talk to you. Thank you.

CULPO: Thank you.

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