This is a partial transcript from "The O'Reilly Factor," July 12, 2005, that has been edited for clarity.

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BILL O'REILLY, HOST: In “'The Factor' Investigation" segment tonight, judges and politicians who are soft on convicted child sex offenders. They're all over the country, ladies and gentlemen. And we, the people, must demand laws that take sentencing discretion away from the judges.

Case in point: Minnesota Judge Thomas Schroeder last March. A man named Joseph Duncan came before Schroeder. Duncan had served 16 years in prison for raping a 14-year-old boy at gunpoint, had a long history of abusing children. Yet Judge Schroeder let him out on $1,500 cash! Fifteen hundred, even though Duncan was charged, again, with molesting a child.

So what happens? Duncan allegedly travels to Idaho, murders a 9-year- old boy, brutally molests an 8-year-old, his sister, before being captured by police.

Schroeder says he didn't know how bad Duncan was, but all Schroeder had to do was ask the prosecutor, who botched the bail hearing, as well, to check with the National Crime Information Center, a computerized history of all convicted felons in the USA, But Schroeder is too lazy to do that. So one little boy is dead and another little girl brutalized. Way to go, Judge Schroeder.

Now, for weeks “The Factor” has been investigating which states are tough on child sex offenders and which states are not.

In the tough category are Arizona, California, Florida, Idaho, Iowa, Minnesota, Mississippi, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Virginia, Washington state, West Virginia and Wisconsin. All of those are tough on sex offenders.

States currently considering new tough laws: Colorado, Delaware, Illinois, Kentucky, Massachusetts, New Jersey, Nebraska, Nevada, and Ohio. And you should urge your governor to support these laws.

States that have soft laws and whose governors are trying to change those laws: Arkansas, Georgia, Kansas, Maryland, Montana and Utah. Again, support your governor there.

States that don't seem to care about this issue at all and their governors: Alabama and Governor Bob Riley; Alaska and Governor Frank Murkowski; Connecticut and Governor Jodi Rell; Hawaii, which may be the worst -- and Governor Linda Lingle; Louisiana and Governor Kathleen Blanco; Maine and Governor John Baldacci; Michigan and Governor Jennifer Granholm; Missouri and Governor Matt Blunt; New York and Governor George Pataki; Oregon and Governor Ted Kulongoski; Pennsylvania and Governor Ed Rendell; Texas and Governor Rick Perry; and Wyoming and Governor Dave Freudenthal.

Remember those states and those governors, ladies and gentlemen, if you live there. These states are soft on child sex offenders, and their governors do not care. What a disgrace. It's up to you to put pressure on these people to protect the kids.

With us now in the studio, FOX News chief judicial analyst Judge Andrew Napolitano, and from Seattle, Jennifer Inwood, the cousin of Dylan and Shasta Groene.

Miss Inwood, we'll begin with you. I just want your family's reaction to these terrible, terrible things. Again, all Americans are with you. All praying for the children. What say you, madam?

JENNIFER INWOOD, COUSIN OF DYLAN AND SHASTA GROENE: Well, first of all, thank you, you know, for continuing to cover this. And thank you to everyone who's reached out to my family.

We are outraged. These people walk the streets. They're not like you and I. We allow them to not be in prison. We allow them to be near our children. And they're getting more and more bold. It's not a matter anymore of watching your child when they're outside or holding their hand in the mall. They are breaking into homes and killing families to get at our kids.

And there is not a bigger issue that I could think of that our legislators on every level need to address.

O'REILLY: OK. Now, I have to ask this question, and I hate to ask it, but I have to. The parents of the children, one dead, the boy, molested the girl. All right, the mother and her boyfriend and another friend were found with illegal drugs in their system, all right, at the time of the murder, and at the time these children were kidnapped by — allegedly by this Duncan monster.

OK, you know, it's a warning. You cannot be in that world and want to protect your children. Wouldn't you agree with me?

INWOOD: I think that every parent, regardless of what choices they make personally, want their kids to be safe. I know that Brenda and Mark would never have put their kids in jeopardy purposefully.

And I don't know what the police know that we don't know yet, but I have a feeling that this gentleman, this monster — not even a gentleman, but a monster, would have found a different family and done the same thing if he hadn't found ours.

O'REILLY: That's probably true. But I do want people to know, adults, if you have children and you're drug involved, you're putting your kids at risk.

And by the way, the father of these two was not involved. It was the mother and her boyfriend or whatever.

Ms. Inwood, I'm going to let you go. Thank you very much for helping us out. And again, our condolences to your family.

OK, Judge. Now, there are two things on the docket here, pardon the pun. This Judge Schroeder lets this guy out. And you know, $1,500?

JUDGE ANDREW NAPOLITANO, FOX NEWS JUDICIAL ANALYST: The bail was extremely low. Here's how it worked. The government asked for $25,000. The defendant's lawyer asked for $10,000. The judge compromised at $15,000 but allowed them to post a bond, which means he has to come up with just $1,500.

O'REILLY: Right.

NAPOLITANO: So you're right on the number. The prosecutor hints during the bail hearing, there's something I want to tell you, but I can't tell you in the courtroom. The judge says, "OK, let's go into chambers." There is no record of what was said in chambers.

O'REILLY: OK, the Minnesota paper reports, the Minnesota Star Tribune reports Schroeder knew this guy served 16 years. Sixteen years.

NAPOLITANO: Well, if Judge Schroeder knew that, then a $1,500 bail is absolutely unacceptable. There should have been no bail at all or bail so high that it would be impossible for him to meet it.

O'REILLY: That's what the Star Tribune has reported. But even if he didn't know, all he had to do was go to the prosecutor, run this by Washington, and it will come back with the sheet.

NAPOLITANO: It takes the prosecutors about five or 10 minutes.

O'REILLY: Minutes.

NAPOLITANO: To go to this computer.

O'REILLY: Right.

NAPOLITANO: It is their job to get that information.

O'REILLY: Schroeder's got a responsibility, too.

NAPOLITANO: He should have demanded the prosecutor tell him.

O'REILLY: Right.

NAPOLITANO: What was he in jail for? Was it a crime of violence? Did he rape a young boy at the end of a gun, which is true. It's what he did.

O'REILLY: Look, the paper says that Schroeder knew it. Schroeder's responsibility, so it's on Schroeder. It's on him.

NAPOLITANO: Then why did the prosecutor...

O'REILLY: I don't care about that.

NAPOLITANO: ... just ask for $25,000?

O'REILLY: I don't know.

NAPOLITANO: He should have asked for $10 million.

O'REILLY: I'm going where the buck stops. You know where the buck stops.

NAPOLITANO: Ultimately, the buck stops with the judge.

O'REILLY: That's right.

NAPOLITANO: But the judge is no better than the evidence given to him.

O'REILLY: I don't buy it. I think a judge can be proactive and do just what you said, order the prosecutor to make the call to Washington and find out.

Now, one more question for you. Were you shocked that so many states and governors just don't care about this?

NAPOLITANO: Yes, I was shocked at that. I would like to know the background of it. I am shocked, because the problem is a serious one. This guy Duncan moved from state to state.

O'REILLY: And how many times do we see this?

NAPOLITANO: Judge Schroeder's dropping the ball caused harm in another state, where Judge Schroeder doesn't sit.

O'REILLY: How many times have we seen this in the last few years?

NAPOLITANO: It seems to be all...

O'REILLY: All over the place.

NAPOLITANO: ... all the time this happens.

O'REILLY: So you would think that the judges would be proactive. They're not. We've got to take it out of the hands of the judges and pass Jessica's Law, which did pass in Florida, everywhere.

NAPOLITANO: Interestingly, the sentencing guidelines in Minnesota dumb down, make the judge sentence him to less time. Without the sentencing guidelines, this guy could have been sentenced to 25 years, had he been convicted in that.

O'REILLY: All right. It's just sickening, and the — we spent a lot of time compiling that information for you, ladies and gentlemen. And Schroeder has no excuse, in my opinion. And those governors that you saw up there, you ought to get on the phone to them.

Judge, thanks very much.

NAPOLITANO: You're welcome.

O'REILLY: We appreciate it, as always.

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