Updated

This is a RUSH transcript from "The O'Reilly Factor," January 11, 2013. This copy may not be in its final form and may be updated.

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BILL O'REILLY: Now for the "Top Story" tonight. Perhaps the most liberal state in the union is Hawaii -- more than a million Americans live there. Hawaii has the fourth highest homeless rate in the USA, it ranks number one in food stamps.

Its debt approaching $10 billion, money it will never be able to pay back. 39 percent of Hawaiians describe themselves as nonreligious. Prostitution and drug use widely accepted in the islands. The individual state income tax rate, the highest in the country at 11 percent. If you are an underage girl in Hawaii, you can get an abortion without telling your parents. And if you rape a child in the Aloha State the mandatory prison sentence is an unbelievable two years. Hawaii will not pass Jessica's Law to correct that appalling situation.

Joining us from Honolulu is Congresswoman Colleen Hanabusa who objected to THE FACTOR's report last week that focused in on Hawaii's liberal culture. So Congresswoman what exactly is your beef?

REP. COLLEEN HANABUSA (D), HAWAII: Well first of all, Mr. O'Reilly, thank you for giving us this opportunity.

O'REILLY: Sure.

HANABUSA: What I was taking great exception to was the way you basically described Asian Americans, which I am a part of. You must know that one of the issues that we have always contended with as Asian Americans is the fact that we have had to deal with for example World War II and the fact that Japanese Americans were interned for no reasons other than the fact that where their parents may have been born and where they have been born.

O'REILLY: And that was appalling. At that time Franklin Roosevelt who is liberal guy not me. But -- but let's get specific what did I say about Asian Americans that has you fired up?

HANABUSA: You -- you just basically said that we couldn't be from a liberal state because though I'm sure you meant it sort of as a compliment. Because we are hard working and we are in fact industrious and some of that did not equate --

O'REILLY: And that's exactly what I said. Those are my exact words.

HANABUSA: And that doesn't -- but that did not equate to someone who is liberal. And but what you fail to recognize is a major part of our culture, our Asian culture, Pacific islander culture is the fact that we cherish our Capuna. Those are our elders. We believe and the fact that someone put it to me today we move together. We are a culture that really talk about and care about each other.

O'REILLY: Ok that has nothing to do with what we are talking about. Now listen, did you see the report? Did you see the report we did?

HANABUSA: Yes.

O'REILLY: You did? Do you remember who the correspondent was?

HANABUSA: Yes. No, I'm sorry I don't.

O'REILLY: Ok.

HANABUSA: Other than the fact that it was you. That you were talking about this.

O'REILLY: But you don't remember the guy that we sent to Hawaii who was talking to me on the set?

HANABUSA: No I don't remember that person.

O'REILLY: Do you remember ever seeing him -- do you remember seeing him on the set?

HANABUSA: No I don't remember seeing him on the set.

O'REILLY: Ok it's hard to believe you saw the report then Congresswoman with all due respect.

HANABUSA: I saw you. I saw you in it.

O'REILLY: On your Web site you took it from -- all right you saw me but he was with me -- he was with me and you didn't see him.

HANABUSA: And I also saw the scenes that you put on your report. I saw those.

O'REILLY: Yes you saw them on media -- Congresswoman just listen to me for a minute because I think you are a good person and a fair person.

HANABUSA: Ok.

O'REILLY: I don't believe you saw that report on television. I saw - - I think you saw it on Media Matters, which you site on your Web site. And you took a clip from Media Matters, which they took totally out of context, totally out of context, all right? You didn't see the full report on this program. You didn't, did you?

HANABUSA: I saw it -- yes, you are right. I saw it on a --

(CROSSTALK)

O'REILLY: Ok thank you all right.

HANABUSA: -- rebroadcast.

O'REILLY: Ok so that's mistake number one.

HANABUSA: Right.

O'REILLY: If the Asian comment was in the context of Watters going to Hawaii, interviewing guys in recliners who are on unemployment sitting back in the beautiful sun and saying, you know what? It's give me stuff. I don't want to work for it. That's what it was -- that's it. It wasn't an Asian American report.

HANABUSA: If you want to -- if you want to just pick on certain things in Hawaii as you would at any other state --

O'REILLY: No, no. No. I love Hawaii.

HANABUSA: -- I'm sure you could find it. I know that's what I found to be so interesting that you love Hawaii.

O'REILLY: I know Hawaii -- Congresswoman, I know Hawaii as well as any journalists in this country. I based out of there when I did my Asian reporting. I love Hawaii. However, you can't dispute what I just told you. You have a very low unemployment rate in Hawaii. It's 5.3 percent.

HANABUSA: Very low.

O'REILLY: It's very low.

(CROSSTALK)

HANABUSA: Actually lower than that depending on --

O'REILLY: Yes you have the highest food stamp -- you have the highest food stamp and the fourth highest homeless rate in the country. That's because you've set up an entitlement system that encourages people to get food stamps and be homeless. That's what you've done. The addiction rate in the islands is off the chart because you don't enforce the drug laws there. Drugs are coming in from everywhere. This is the liberal culture.

HANABUSA: You know I think -- I think Mr. O'Reilly what you8 have to look is look at our statistics.

O'REILLY: I do, I just gave them to you.

HANABUSA: No. You do not have -- you do not have statistics available based on just what you say drug use. Those statistics are not kept by the FBI or by our own attorney general's office.

(CROSSTALK)

O'REILLY: Are you -- are you going to deny to me that you have a big substance abuse problems in the island are you going to do that tonight?

HANABUSA: You know I'm not saying that no one --

(CROSSTALK)

O'REILLY: You can't do it because you know you do. All right, let's get to the --

(CROSSTALK)

HANABUSA: No, wait a minute. I have worked on this whole issue with crystal meth in Hawaii. And I will tell you the one thing that we have always recognized and we've always done is we've addressed it and we know where to start. And that's when we have been successful.

(CROSSTALK)

O'REILLY: Mrs. Congresswoman you are a good woman. You're a good woman and you know you have a problem, which is why you are spending your time on it.

Now, I've got to get to Jessica's Law. Are you kidding me? Two year mandatory for child rape? 45 states have some kind of Jessica's Law which means that child rapist are given 15 to life if they commit that crime. Hawaii won't even consider it. Come on. You've got to get behind that.

HANABUSA: I'm -- I will tell you, I will get behind it.

O'REILLY: Excellent.

HANABUSA: But that's not what we're talking about here.

O'REILLY: Oh yes we are, we're talking about a liberal Hawaii. A liberal Hawaii.

2010

HANABUSA: We are liberal -- we are -- we are by your definition liberal because we care -- we care about our elders. We care about those who need help.

O'REILLY: Conservative people care about their elders too.

HANABUSA: But we have a very strong culture in Hawaii to do that. All I'm saying is when you characterize us in Hawaii, be aware that you're talking about a culture of people who have managed to live together and work together. Also realize that John Kennedy said we are what America should be like.

O'REILLY: Ok.

HANABUSA: Because we are that special state. And I'm glad you like coming here. And I hope that you continue to come here.

O'REILLY: In your heart, in their hearts Hawaiian people are the best -- in their hearts. All right? Your social system is chaotic. And do me one favor because I think you're a very good woman. Never again condemn anybody unless you see the total report. Because, what I did was not offensive to Asians. I was talking into a context that you didn't see because you took it off a far-left Web site that is dishonest. And that doesn't do you any good.

HANABUSA: No. No you are offensive to Asians. You are. By making that statement, you were offensive to all of us who are Asian.

O'REILLY: No, no, if you -- Congresswoman.

HANABUSA: We are not one kind a person. We want you to recognize that we are different. That is all we're asking to do. We are individuals and we are different.

O'REILLY: Congresswoman, I will do that -- I will do that if you'll promise me you will be fair if you are going to come after somebody, watch the report. It was three minutes and 30 seconds. You could have done it. You should have done it Congresswoman, thanks very much. I've got to go.

HANABUSA: I did see the report and I'm sorry if you feel I didn't watch the whole thing.

O'REILLY: All right, you just said you didn't watch it so we'll take your word.

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