Updated

This is a RUSH transcript from "The O'Reilly Factor," December 3, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: Tonight we begin a brand-new feature called "Lou's the Boss." Each Friday, Fox Business anchor Lou Dobbs will appear on "The Factor," putting up with my questions.

First topic: what to do with illegal housekeeper Nicky Diaz, who's still in the country after attacking Meg Whitman and damaging her quest to become the governor of California. I spoke with Mr. Dobbs last night.

(BEGIN VIDEOTAPE)

O'REILLY: So this is a tough one for me to report because I don't have anything against a maid trying to earn a living, has children. I don't want to persecute her, all right? But, I mean, she has a bogus Social Security number. She humiliates a major candidate, does effect an election. She's backed by the uber-left California Nurses Association with money.

LOU DOBBS, FOX BUSINESS ANCHOR: Right.

O'REILLY: So what should happen to this woman?

DOBBS: What's happening to this woman is interesting, because the support of the California Nurses Association means that she is going to have a cordon around her in this process.

O'REILLY: And she does.

DOBBS: Right. Also, the --if you will, the interstitials that result, that is the play here between individual responsibility for one's actions, whether it be hers or whether it be Meg Whitman as the candidate. Let's be clear. Meg Whitman is not absolved in any way of her…

O'REILLY: No, but we don't know what happened.

DOBBS: Right.

O'REILLY: Whitman says she didn't know. This one says she did know. So I stay out of that. But the fact in stone is Nicky Diaz broke the law.

DOBBS: Without question.

O'REILLY: You -- and I'm not talking about illegal alien. That's civil law.

DOBBS: Right.

O'REILLY: She used a bogus Social Security card.

DOBBS: But the appellate courts have held to this point that just using that Social Security number, Bill, is not a crime.

O'REILLY: So, identity theft isn't a crime?

DOBBS: Identity theft is a crime. But the Social Security number use, even though you know it is someone else's number, is not.

O'REILLY: What does that mean? What does that mean?

DOBBS: That means our jurisprudence system in this country is a mess.

O'REILLY: OK. So, you are telling me that Nicky Diaz, who influenced a major California -- you know, because Hispanics voted heavily for Jerry Brown, against Meg Whitman, well, it was close, and it separate -- is not going to be punished?

DOBBS: It looks like she will not be. But the same question arises, she's become, Nicky Diaz, as you well know, a metaphor for illegal immigration, that crisis, and the crisis of open borders in this country. And what is interesting is I'm saying, the intersection here amongst various political currents, individual responsibility. Meg Whitman tries to distance herself from a woman who's been a part of her family, literally, her household, for seven years. She does it in the most clumsy, awkward and, frankly, repugnant way. Rather than dealing with her as a human being…

O'REILLY: But what would you have done? I mean, you're running as a governor and you find your maid is illegal whom you treated well, what would do you?

DOBBS: The first thing I would do is say, look, this not going to happen.

O'REILLY: But it already happened.

DOBBS: Well, it's not going to continue. And, further, we have got to take care of you as a human being.

O'REILLY: Well how do we know she didn't do it?

DOBBS: What I do is hire an immigration attorney. I give her all of the support that I possibly can within the boundaries of the law.

O'REILLY: All right. So you just don't just cut her loose.

(CROSSTALK)

O'REILLY: OK. Now, I had Janet Napolitano, Homeland Security chief on the program, and I asked her, what are you going to do? And Ms. Napolitano's like, I don't know. What would you do you? You're the Homeland Security chief, Dobbs. You deport her?

DOBBS: I would take -- having taken an oath in that office, I would do precisely what my oath said. I would support the Constitution and the laws of the United States.

O'REILLY: So what would you do?

DOBBS: You have to begin enforcing all of the immigration laws.

O'REILLY: So you take her in then?

DOBBS: You carry out the process. That does not necessarily, by the way, mean taking her in. But you begin the process.

O'REILLY: You detain her?

DOBBS: I think, absolutely. I begin proceedings without question.

O'REILLY: OK. That's what I would do.

DOBBS: Absolutely.

O'REILLY: Because you can't have 12 million people running around a country with phony Social Security cards.

DOBBS: Absolutely not.

O'REILLY: I mean, it's just wreaking havoc. Do you know the city of Los Angeles pays more than $1 billion a year of the taxpayers to fund illegal alien activities? And the city is broke. The whole state is broke.

DOBBS: The state of California is a disaster. A third of its debt is being underwritten by the federal taxpayer. The state of California is an irresponsible organization.

O'REILLY: It's not all illegal aliens generated.

DOBBS: Of course not.

O'REILLY: But a lot of it is. Some of it is.

DOBBS: Some of it is and the fact is, the state of California is simply out of control.

O'REILLY: It is, no doubt about it.

DOBBS: So, if one is looking for rationality and enforcement of law, probably California isn't the perfect place to turn.

O'REILLY: All right. So now you are Fox Business guy. You're on the staff here, because I saw your servants, big entourage walking through the hall. Dobbs must be in the building. How is it going? Is it fun over there?

DOBBS: We're developing a show. It's great fun. It's a great honor to be with such a great team.

O'REILLY: OK. You know, you sound like one of these athletes, you know, these football players. That's what you sound like. You know, I'm just thankful the good Lord put me here on the field to score a touchdown.

DOBBS: You know, this is one of those times which it has the added convenience of being absolutely true, as well as somewhat…

O'REILLY: I told you. I think I was the first guy after you got booted out of CNN or whatever the hell happened over there, I told you you would come here, didn't I?

DOBBS: You did.

O'REILLY: This is a good place.

DOBBS: And you were very kind to me from the outset.

O'REILLY: This is a good place. All right. Lou Dobbs, everybody. He's going to be with us every Friday, and we really appreciate it.

DOBBS: Well, great to be with you, Bill. Thanks.

(END VIDEOTAPE)

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