This is a rush transcript from "The O'Reilly Factor," January 27, 2009. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Is It Legal?" segment tonight: the John Travolta extortion case and the gay mayor of Portland take the stage.

Forty-five-year-old Sam Adams, an openly gay guy, was elected the mayor of Portland, Oregon, in 2007. But last Monday, a scandal broke that involves the mayor and a teenaged boy, and all heck was breaking loose in the Rose City.

With us now, Megyn Kelly and Lis Wiehl, the "Is It Legal?" team. All right, Wiehl, what did the guy do and what should happen to him?

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LIS WIEHL, FOX NEWS LEGAL ANALYST: First of all, he lied about having an affair with — falsely claimed the 18-year-old boy. So the boy is of age when they have the affair. The boy says he is 18 when they first started having this affair.

O'REILLY: The guy's, what, 42 or something?

WIEHL: I don't know how old this guy is. Whatever, but he lied. Now, but he didn't lie under oath. He just lied to the press. And now he's come forward and said, "I did have this. I did have this affair." The kid is not under age. The kid even says, "I was 18 when we started having sex." So it's consensual sex. As far as I can tell, the kid is not on the public employee list, so it's not like he got, you know, the public employee.

O'REILLY: He was a city commissioner at the time?

WIEHL: Exactly. But the question, the legal question is should he and can he be recalled? I mean, there's a whole process...

O'REILLY: First of all, you think there's...

MEGYN KELLY, FOX NEWS ANCHOR: Yes. The boy, who is now 21, who's — you can't make this up. His name is Bo Breedlove. The one that he had the affair with has come out and said that, even before they began their sexual relationship, that they had at least two kisses. That may not sound like a big deal, but that boy was 17 when that happened, by his own admission. That's below the age of consent. And the question under the law, when you're looking at whether to charge somebody with sexual misconduct is was it an intimate act. Kissing a woman's neck has been found an intimate act.

O'REILLY: So this guy has — but it's Portland. Remember where we are now. It's Portland, Oregon. And, you know, they're very, very permissive, Multnomah County in particular, about the stuff. So he loses his top aide. The top aide quits today.

WIEHL: Top aide's resigned, right.

O'REILLY: And nobody knows why. Do you think this guy holds onto his job?

WIEHL: I think he does. I really do think he does. I don't think two kisses is something you're going to go to court with.

O'REILLY: Do you think he holds onto his job?

KELLY: I don't — first of all, I don't agree with that at all. I think that there needs to be an investigation here, because the boy, they say...

O'REILLY: But remember where you are. I lived in the city. I worked the media in the city. I know what the city is.

KELLY: But they are looking at it. I mean, I agree with you. But they are looking into it, at least. To their credit, the police are.

O'REILLY: The state police would have to do it, not the locals. The bureau — Portland bureau is not going to do it.

KELLY: Let me tell you that — this now 21-year-old. And he was — when he was...

O'REILLY: Fine, I got your point.

KELLY: ...has reason to lie. So it could be that...

WIEHL: But who's going to testify about that?

KELLY: How about text messages? How about e-mail? Nobody needs testimony at the evidence.

(CROSSTALK)

O'REILLY: We'll see if the state police have, you know, the will to do this. But I would say the locals would not.

All right. Now, the ACLU, this is interesting, suing a Muslim school, Kelly, in Minneapolis. For what?

KELLY: Because they say that this charter school is basically funneling money to this Muslim organization. It's renting its facilities from a Muslim organization called the Muslim American Society of Minnesota, that it's giving money to that...

O'REILLY: Well, it's obviously a Muslim school. Tarek Ibn Ziyad Academy.

KELLY: Well, that's...

O'REILLY: It's a public school, right?

KELLY: Yes, it's a public school.

O'REILLY: It's obviously a Muslim school.

KELLY: A Muslim name, but it's not necessarily, obviously, a Muslim school.

O'REILLY: Are there any non-Muslims in the school?

KELLY: No.

O'REILLY: I don't think so.

KELLY: Listen, that money, the taxpayer money...

O'REILLY: Is going into the school.

KELLY: And it can't be used to promote religion.

O'REILLY: But it's a Muslim school.

KELLY: Listen, it can't be used to promote religion — specifically to promote one religion over another.

O'REILLY: This is the first time I'm agreeing with the ACLU in the history of "The O'Reilly Factor." It's a Muslim school.

WIEHL: That's right.

O'REILLY: If you know the duck, if it walks...

WIEHL: Walks, it quacks.

O'REILLY: If it's the Tarik Imami (ph) school, and it's all Muslims, it's a Muslim school.

WIEHL: The way they went about this is — first of all, Minnesota department came in and said, "Look, you've got to, you know, shape up, school."

O'REILLY: Shape up?

WIEHL: Well, shape things up.

O'REILLY: If they'd change the name of the school to Billy Bob Eukiss Hye (ph), then maybe. Put the name of the school up again. Tarek what? Come on. So the ACLU is right. The public school — there it is, Tarek Ibn Ziyad Academy. Give me a "T." Give me an "A." OK, that's a Muslim school. It should not be getting money from the folks.

WIEHL: They're saying, "We're not compelling any religion. We're not compelling."

O'REILLY: Right. You're not compelling anything.

KELLY: But the little girls aren't allowed to show their arms.

O'REILLY: Right, leaning out of the window in a burka. But we don't compel it.

WIEHL: That's a uniform.

O'REILLY: But if you don't, you're beheaded.

WIEHL: Now, just curious...

(CROSSTALK)

O'REILLY: Come on, Minnesota. Jeez.

WIEHL: I cannot believe you...

O'REILLY: Stuart Smalley, if he gets to be senator, he'll be in there rapping those Muslims. You wait and see.

KELLY: Sort of a special brand of justice, isn't it?

O'REILLY: Yes. John Travolta is serious, though. Poor 16-year-old dies. There has been arrests made in the Bahamas. Who got arrested?

WIEHL: The EM driver, the medical driver that actually took Jett from the home to the hospital got arrested for, of all things, extortion. Now, there are other people involved with this, as well, who apparently were calling, according to reports, were calling Travolta's people.

O'REILLY: There's the guy.

WIEHL: Right. And saying, "Hey, we have this document," this document which turns out to be an authorization document to actually go — or refuse to go in the ambulance. And "we want 25..."

O'REILLY: So they have a document that Travolta signed?

WIEHL: We don't know. We don't know whether it's Travolta or the mother, but there was a right to refusal document...

O'REILLY: And they signed that "We don't want the kid in the ambulance"?

KELLY: There was a dispute over where to take Jett Travolta.

O'REILLY: I see.

KELLY: And — and there was a refusal to transport documents because they didn't want him being taken to one facility versus another. And this is the document, according to TMZ, who has reported it, that is being held over their heads for $20 million.

O'REILLY: So what the extortionists were saying is that "You didn't do enough to protect your son's life."

KELLY: That's speculation.

O'REILLY: All right. This is allegedly. All right, and "we want money."

KELLY: Right.

O'REILLY: But it's not — well, it is allegedly. The guy, he's been arrested. One guy so far.

WIEHL: One guy is arrested. Two other people are being investigated.

KELLY: No, no, two people charged. Two people charged.

O'REILLY: There are two people charged tonight?

KELLY: A senator, the Bahamian senator, has been charged with conspiracy to extort. The paramedic has been charged with attempt to extort. And there's a third player in this, called Obie Wilchcombe, who's the former minister of tourism who was the friend of John Travolta and Kelly Preston. They're friends, allegedly.

O'REILLY: We've got a minute left. This is a real quick one. There's a poor guy, 93-year-old guy in Bay City, Michigan, who dies of — he freezes to death because the utility cut off his heat. Couldn't pay his bill. Now this should never happen in America, Kelly. And I think that the utility company has got to pay some kind of price here.

KELLY: Terrible, yes. And they're standing by their decision and saying, "Well, we revisited the policy, but we did nothing wrong." Is you did nothing wrong, you basically killed a 93-year-old. But when they found his body, they found cash paper clipped to his bill. The man — he was behind in his payments.

O'REILLY: He's 93.

KELLY: He's 93 years old. There can't be any humanity? There can't be any understanding?

O'REILLY: No, I know it's wrong. Is anything older people or people can do to stop — and I only have 15 seconds — to stop this kind of thing?

KELLY: Unless he sues for better state suits...

O'REILLY: Now, now, in their circumstance now, is there anything they can do?

WIEHL: No. Not legally.

O'REILLY: There's nothing they can do?

WIEHL: Not legally.

O'REILLY: They can't go to legal aid or anything like that?

WIEHL: Well, of course they can, but until they actually — until something like this, a tragedy happens and a...

O'REILLY: All right. If you have that problem, you e-mail me. We'll give you the e-mail address at the end of the show. If you have this problem, e-mail me. I'll make sure you don't get anything cut off, all right? We'll solve that problem right away.

Ladies, thanks very much. We appreciate it.

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