This is a RUSH transcript from "The O'Reilly Factor," March 22, 2012. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Kelly File" segment tonight, two very hot topics, beginning with the fatal shooting of 17-year-old Trayvon Martin in Florida.

As you may know, 28-year-old George Zimmerman, a Neighborhood Watch guy, shot the teenager dead in Sanford, Florida. Mr. Zimmerman says the boy was acting in a strange manner.

No charges have been filed, because Florida has a law that allows people to use deadly force if they feel threatened. However, Trayvon Martin was unarmed, and now the feds are investigating the civil rights angle, because no charges have been filed locally.

With us now to analyze what might happen, attorney and FOX News anchor Megyn Kelly.

So the local police chief in Sanford, he's out?

MEGYN KELLY, FOX NEWS ANCHOR: Yes, he's temporarily out, at least.

O'REILLY: Why did he...

KELLY: Saying he's become a distraction in this national debate and so two other guys are going to now share the co-duties.

O'REILLY: Why was he a distraction?

KELLY: Because he stood by his police department with respect to no charges being brought. And they basically took the word of the defendant, the would-be defendant here, and did very little investigating. And now that there's national outcry and people are calling for him to step down, he's done so temporarily.

O'REILLY: Well, he did the right thing. He got out of the way. Now, this Zimmerman guy, he, according to ABC News reporting, had called 911 something like 50 times.

KELLY: Yes.

O'REILLY: He was constant… I mean...

KELLY: Scores of times just since January.

O'REILLY: Right.

KELLY: Look, Bill, this case, you don't want to rush to judgment. I agree with you; you don't want to convict him here. But this stinks to high heaven.

And the way the police handled this stinks to high heaven. They need -- they now said today that they are handing this over to the Florida attorney general. That's good. They'll do an independent investigation. Let's just hope it hasn't been botched so badly so far that they can't do the investigation they need to do. The feds are involved. But this looks like a terrible situation.

I will say this: as far as the hate crime goes, I don't know that they have him on that. Because even if he uttered a racial slur on those 911 calls -- and there is some evidence he did -- that doesn't necessarily make this a hate crime. A hate crime is where I attack you because you are black.

O'REILLY: Simply because of that reason.

KELLY: That is the only reason, the main thrust of the attack. It can't just be one of the things. But in terms of second-degree murder, that charge looks very promising for the D.A.

O'REILLY: You think it will be a state charge and not a federal charge?

KELLY: It will be. I think especially now that the Florida attorney general, according to these guys locally, is now getting involved. That will take it to a new level. The FBI will help them investigate, as they've already stepped in. And now hopefully will get some real facts.

But I will say this: the "stand your ground" law, that's not what this case is about. It's not about the "stand your ground" law. Even the guy who authored that law has said, "My law doesn't apply here." You cannot -- that allows me to defend myself with deadly force on the street if you come up to me and put me in fear of my life. That does not apply when I go over to you, I create the circumstances of a confrontation...

O'REILLY: Correct.

KELLY: ... then you start using force against me. I can't use that law to then use deadly force against you.

O'REILLY: That's provocation. Right. And this guy...

KELLY: That's written into the law saying it doesn't apply under the circumstances.

O'REILLY: All right. Well, again, we'll let the system, as long as the system, you know, moves along, we'll just watch what happens here.

Next Tuesday Supreme Court cranks up with ObamaCare. That's big, right?

KELLY: Yes, this is big. And this is the most...

O'REILLY: Are you going back to the Supreme Court reporting?

KELLY: I don't even think I can get in now. It's like even lawmakers can't get into the U.S. Supreme Court for this argument.

O'REILLY: Packed house.

KELLY: Totally packed house. I will say this. The first you'll hear about it will be on my show at 1 p.m., because the audio comes out right as my show goes to air each day.

O'REILLY: Good for you. Now, the Obama administration isn't celebrating the second anniversary of Obama care.

KELLY: No.