• With: Megyn Kelly

    This is a RUSH transcript from "The O'Reilly Factor," March 15, 2012. This copy may not be in its final form and may be updated.

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    O'REILLY: "Kelly File" segment tonight. Two very hot topics, a call for the U.N. to investigate U.S. voting laws. What?

    But first, the Arizona Senate approves a measure requiring a drug test for anyone applying for unemployment benefits in that state. Here now, attorney and Fox News anchor, Megyn Kelly. All right so tell me about Arizona. What do they want?

    MEGYN KELLY, FOX NEWS ANCHOR: So they want to test unemployment recipients for drug use.

    O'REILLY: Why?

    KELLY: But they only want to test those whom they have a reasonable suspicion about, if they have reasonable cause to believe you might be on drugs. And if you got arrested…

    O'REILLY: So if you walk in and fall down?

    KELLY: You know you smell like the Mary Jane when you walk into the office?

    O'REILLY: Mary Jane? What's that?

    KELLY: Try to keep up Bill.

    O'REILLY: I can't.

    KELLY: You call me little Bo Peep, you're little Bo Peep.

    O'REILLY: I know what Mary Jane is.

    KELLY: In any event. So, they don't want those people to get unemployment benefits for a year if they fail a drug test or if there's other reasonable cause to believe that they are on drugs.

    O'REILLY: So, but isn't it very subjective that somebody would say well, step over here and urinate into a cup because you're wobbling down the road? I mean arrest I can understand.

    KELLY: Well, that all goes to what's reasonable…

    O'REILLY: A drug arrest I can understand.

    KELLY: That's where the litigation will come up, what is reasonable? It is arbitrary… arbitrarily applied when you know the… the person making the decision sees one person versus another?

    O'REILLY: Is… Does the law have any standard for state workers to ask? Are there a list of things that they have to comply with?

    KELLY: I don't think so. No.

    O'REILLY: So then it can't stand.

    KELLY: But that's how… that's how the Fourth Amendment works, you know reasonable… reasonable suspicion is what you need to do a warrantless search.

    So it's always up to the… in the eye of the beholder and then it gets checked by a court or another person.

    O'REILLY: But in the Fourth Amendment you have trained police agents, ok, making the decision. Here you have some clerk sitting behind a desk.

    KELLY: Not necessarily because we don't know how the… how the law is going… how the state is going to enforce it if they just go by an arrest if you had a drug arrest.

    O'REILLY: Right.

    KELLY: …and you're facing charges. Automatically there's reasonable suspicions.

    O'REILLY: But you can't… how can Arizona pass a law if they don't know how it's going to be enforced?

    KELLY: No, listen just because I don't know it doesn't mean they don't know.

    O'REILLY: See in theory I'm with them I think there's a lot of fraud in welfare all over the place and there are a lot of drug-addicted and alcoholic people getting money and spending it on drugs and alcohol. The kids never see it.

    So in theory, I like it. I want people to be held accountable. But this law has got to be specific about what you can and can't do.

    KELLY: I… well, you can't be on drugs and use the money for… that you get for unemployment.

    O'REILLY: But they have to find a way to make sure that…

    KELLY: They can't make it more specific than reasonable suspicion or reasonable cause, Bill. Because then they're going to include a whole bunch of things that they shouldn't include and exclude a bunch of things they shouldn't exclude.

    O'REILLY: Would you vote for this law if you were in Arizona.

    KELLY: I mean, my own personal view is I don't like these laws because I do think that in the end that you could hurt families.

    O'REILLY: How do you…