This is a partial transcript from "The O'Reilly Factor," November 9, 2005, that has been edited for clarity.

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BILL O'REILLY, HOST: In the "Personal Story" segment tonight, a rare interview with a convicted child molester. In 1988, Dave Spencer was convicted of child molestation, sentenced to five years probation. No jail time.

Then the year 2000, Spencer was convicted of sexually assaulting his seven-year old nephew. Served just five years in prison.

Now Spender's speaking out about how to punish child molesters. And he joins us from Des Moines, Iowa.

So you have some problems with the law in Iowa vis a vis punishing child molesters? What are they?

DAVE SPENCER, TWICE CONVICTED SEX OFFENDER: Yes, I do, because the laws that have come out of the Jacob Wedderling (ph) and Megan's Law, and the Pam Litchner (ph) Act and some others have amounted to banishment here in Iowa because there's not very many places for people to live..

O'REILLY: Because you can't live within a school area, this, that and the other thing, correct?

SPENCER: That's right.

O'REILLY: All right, but don't you consider yourself lucky to be walking around free now after two convictions from molesting children? I mean, shouldn't you be incarcerated?

SPENCER: Not really. There's a lot of statistics about the incidents of sexual abuse. The average typical, if there is such a thing, sex offender has has 1.3 convictions before he turns his life around and doesn't reoffend again. Treatment is effective as opposed to these laws, which really don't do anything to protect the public.

O'REILLY: You say that you're cured now of whatever made you harm these two children?

SPENCER: There is no cure for sex offenses, but there is major changes through treatment that can help a person understand himself and how he deals with life better. And then future is better.

O'REILLY: All right, but see, here is the deal. Here's the deal. You were caught doing this. I assume you did it more than twice and you weren't caught. I mean, because it's almost impossible for you to be caught just the times — the two times. So I assume there were a bunch of other kids that you molested and would I be wrong in that assumption?

SPENCER: Yes, you are wrong, because that is not necessarily the case.

O'REILLY: OK. So there were just two children. There were two children that you molested and you got caught and convicted for both of them. And there were no other children. Is that what you're telling me?

SPENCER: That's true. That's correct.

O'REILLY: All right. Now, even if that's true, you've got two little kids whose lives have been altered forever, because they're never going to forget it. You don't know how that — what you did to them is going to affect their private life.

The first time you didn't get jail time, and the second time you just did five. Now if it were me, and I'm saying this with all due respect, because I know this is tough for you to sit there and face the camera, I would have given you 25 years on the second one. You'd be sitting in jail right now, and I wouldn't care whether you were rehabbed or not, because I would say the guy did it twice. Two kids' lives are altered negatively forever. He deserves to be serving 25 years. Punishment fits the crime. Where would I be going wrong?

SPENCER: The fact is that the sentence I received in court, the judge and the court system sets the — and the legislature, as far as that goes, sets the...

O'REILLY: Well, I don't care about the judge. Look, we're trying to get Megan's Law (sic), as you probably know, passed in all 50 states. I think you should be doing 25 for harming two little children. I think 25 is a fair sentence. Where am I going wrong?

SPENCER: When the statistics show that 90 percent of people that commit sex offenses are, in fact, treatable, and...

O'REILLY: But I don't care whether you're treatable or not. You hurt two little children forever. I don't care whether you're treatable.

SPENCER: I very much regret that.

O'REILLY: Doesn't matter whether you regret it or not. The punishment fits the crime. If you — if you damage two little children forever, you shouldn't be walking around anywhere.

SPENCER: Well, I believe that that is a popular misconception that exists, and that's the reason why we have a lot of these tough laws is because of the fact that sex abuse actually exists because of the lack of proper public education about how to prevent it.

O'REILLY: Well, that's not true. Sex abuse exists because people like you can't control themselves and harm children. I mean, come on.

SPENCER: The difference — the difference in the two sentences that I served in the first case, because there was no treatment involved and there was a more lax attitude at the time in the court, people who get probation, who don't do any time in prison, don't get to learn the right kind of lessons.

O'REILLY: Well, that's true.

SPENCER: That's the difference in me.

O'REILLY: Again, look, we appreciate you coming on here, Mr. Spencer, but instead of complaining about the law, you're damn lucky you're sitting there a free man. If I were in charge, you wouldn't be. Appreciate you coming on.

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