Updated

This is a RUSH transcript from "The O'Reilly Factor," March 4, 2010. 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: a full plate for Ms. Megyn, who joins us now after doing a two-hour news block called "America Live." It runs at 1 p.m. Eastern Time.

So medical marijuana for fifth graders? Why not? Come on. Got a tummy ache?

MEGYN KELLY, HOST, "AMERICA LIVE": That is misleading. That is not what this case is about.

O'REILLY: Come on. What happened here?

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KELLY: Out in California, there's a fifth-grade girl who's got an 18-year-old half-sister. Eighteen-year-old's friend has a medical marijuana prescription. Gets some sort of candy treat. It was Fruity Pebbles and pot.

O'REILLY: Blended in together, sold by the medical marijuana clinic.

KELLY: Yes. Eighteen-year-old gets a piece of Fruity Pebble treat, puts it in her purse. The 10-year-old little half-sister apparently either found it or stole it — we don't know which — took it to school, shared it with five other fifth graders.

O'REILLY: Had a little pot party in fifth grade.

KELLY: Yes. Apparently, a little Fruity Pebble thing that was about this big. It was little kids experimenting as they never should have been.

O'REILLY: Here's why you're taking this far too casually. No. 1, 18-year-old, medical marijuana card, right? I'll submit to you there's nothing wrong with that woman at all. And No. 2, gets the little Fruity Pebble marijuana brownie. This is like a marijuana brownie, but they cook it up with something else.

KELLY: Like a treat.

O'REILLY: Then gives it — gives it — to her friend.

KELLY: There's no evidence of that. To her friend, yes. The 18-year-old — yes.

O'REILLY: OK, so the marijuana — has the marijuana card. The partner goes in, gets the brownie, gives it to her friend.

KELLY: Yes.

O'REILLY: OK. The friend...

KELLY: Shocking!

O'REILLY: ...gives, then puts it in her purse, and then little Tiffany comes over and blasts it out of there. Here is some candy. I'll share it with my friends. You don't think this is going to happen all day long? It's going to happen all day long.

KELLY: I mean, by the way, Tiffany, the reason she got suspended with her friends was because she knew that there was pot in there.

O'REILLY: How did she know?

KELLY: She said she overheard the older sister talking.

O'REILLY: Overheard. So Tiffany wanted to get blasted.

KELLY: Yes.

O'REILLY: And she was 10.

KELLY: It's the same as kids stealing alcohol out of the parents' liquor cabinet.

O'REILLY: OK.

KELLY: You know, kids are going to be kids. They have a level of curiosity.

O'REILLY: It's a lot easier with these medical marijuana clinics. I'm telling you, it's the biggest ruse in town.

OK. Let's go from California to Long Island in New York. We have an adult — a gentleman's club.

KELLY: A gentleman's club.

O'REILLY: OK.

KELLY: Captive.

O'REILLY: There's a bartender. There she is. She gets pregnant, OK? And they want to get her out of there. They don't want her being a bartender any more. So she tapes her boss. Roll the tape.

(BEGIN VIDEO CLIP)

JOHN DOXEY, BAR OWNER: Pregnant woman behind the bar in a topless bar is unsexy. And I'm beginning to think that it's hurting the registers and you're hurting the mood. You're incapable of fulfilling all your job duties.

JEN PAVIGLIANTI, BARTENDER: That's not true. I can do it just fine.

DOXEY: Jen, don't argue with me. Just listen to what I'm saying, OK? I can't help but to think that it's partially because of the issue — guys don't think — they're not coming in to see sexy bartenders that are pregnant that are bulging out.

(END VIDEO CLIP)

O'REILLY: So now, the gentleman's club is in a lot of trouble.

KELLY: Can you say smoking gun? Exhibit A?

O'REILLY: He had to pay this bartender a lot of money.

KELLY: It's great for her because you never get this discrimination this explicitly on tape like that. They never say, "I'm firing you because you're pregnant," "I'm firing you because you're black," "I'm firing you because you're a woman."

O'REILLY: Is that against — is that against New York state law?

KELLY: Yes.

O'REILLY: No matter what job you have? No matter what job you have?

KELLY: Yes. There's a federal law that says you can't...

O'REILLY: A federal law? No matter what job you hold?

KELLY: Yes. Here's the thing. Yes. It is illegal as a blanket rule to discriminate against a pregnant woman because she's pregnant. But one defense to such a claim would be, "I had to fire her because being slim or not being pregnant is what we call a bona fide occupational qualification." In other words, there might have been a different story if she'd been a stripper, and she said, "I want to keep my stripping job." And the club owner says, "But you're a stripper. I don't want a 9-month pregnant stripper."

O'REILLY: Might have had a legal thing there?

KELLY: Yes. You would have had a defense. But you can sling drinks 9 months pregnant, just as you can when you're not.

O'REILLY: OK. Now we go back to California, right?

KELLY: Yes.

O'REILLY: A teacher, a math teacher?

KELLY: Math teacher, yes. San Diego.

O'REILLY: OK. And he's in his classroom, and he decorates his classroom with some patriotic banners. Let me see them. There they are. One nation under God. God bless America. God shed his grace on thee. And there was a couple of others. Another teacher complains.

KELLY: Yes. Another math teacher complains.

O'REILLY: Where was this?

KELLY: It's Poway United School District.

O'REILLY: Poway?

KELLY: Poway by San Diego is my understanding. So let me tell you, both of those banners, one had been up for 25 years, the other for 17. Another math teacher suddenly decides that they're offensive. Why? Too much God. Really kind of too much God. Which, all right, maybe you can make the argument.

O'REILLY: No, you can't.

KELLY: OK. But let's assume you could.

O'REILLY: Can't.

KELLY: Until you walk to the other classrooms in this school and you see they have peace signs. They have an anti-war poster that reads, "How many Iraqi children did we kill today?"

O'REILLY: Excellent.

KELLY: Tibetan prayer flags, Malcolm X, gay rights proponents. The one they take issue with is this one that says, "In God we trust." The horror!

O'REILLY: The school made the guy take them down. All right. And then they guy — the guy got the Thomas Moore Law Center.

KELLY: Yes.

O'REILLY: Excellent group, but he won.

KELLY: He won.

O'REILLY: Good news.

KELLY: Good for this judge who really gave it to him. It's rare you see this in judicial opinion. He said, "Listen, this is ridiculous." And they said, "Well, a Muslim student might be offended." And this is what the judge said: "An imaginary Islamic student is not entitled to a heckler's veto on a teacher's passive expression about God's place in the history of the United States."

O'REILLY: Right on.

KELLY: Good for him.

O'REILLY: Who is that judge? Do we have his name?

KELLY: His name is Bonitas (ph). Judge Bonitas (ph).

O'REILLY: Judge Bonitas (ph).

KELLY: Yes.

O'REILLY: All right. Kelly, thanks very much. We appreciate it.

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