This is a rush transcript from "Hannity," June 20, 2011. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: One of President Obama's most controversial "czars," assistant deputy secretary for the office of safe and drug-free schools, Kevin Jennings has finally left the White House. And on his way out, took some, well, swipes at Fox News.

In a departing interview, the openly gay Jennings accuses his critics, including Fox, of launching a defamation campaign against him, saying, quote, "It is a complete and total victory for us and a complete and total defeat for our opponents because they tried to derail the work that I was brought here to do and they completely failed to do so."

But is it really a complete failure Mr. Jennings if you are stepping down after less than two years in office?

Besides, how is the defamation if the facts are accurate? All we did here for example on "Hannity" was report all of the news that America was not hearing anywhere else. Like how the former schoolteacher and founder of Glisten had advocated promoting homosexuality in our schools. Or how he'd been accused of not reporting an incident where an underage student told him that he was having sex with an older person. It was later revealed that the student claimed that he was 15 at the time, which is the legal age of consent in Massachusetts where the incident occurred. What about how Jennings reportedly told members of the religious right to quote, "drop dead" in a 2000 speech or how he cursed God in his 2006 memoir "Mama's Boy, Preacher's Son" by writing, quote, "what had he done for me, other than make me feel shame and guilt, squat. Screw you buddy, I don't need you around anymore."

And lastly, he wrote the forward to a book called, "Queering Elementary Education." All of which occurred prior to Jennings' joining team Obama.

Here with reaction are Republican strategist Karen Hanretty and former White House special counsel, Fox News contributor Lanny Davis. Lanny, welcome back.


HANNITY: Safe schools "czar" and he -- by the way, this is his telling of the story. A student, I believe a sophomore came to him, said that he was meeting and having sex with strangers that he met at a bus stop. And he didn't report this. This was adult. Didn't report it to anybody. His only advice was I hope you are using a condom or smart enough to use a condom.

Does that sound like a guy who has the appropriate credentials for safe school "czar"?

DAVIS: Well, he himself said that had he do it over again than he mishandled that incident. But you're forgetting to mention what I think you agree with, is that he sponsored a White House conference against bullying, based upon sexual orientation. And even you Sean Hannity, as much as we may disagree, agree that bullying can be dangerous, is sometimes leads kids to suicide...


HANNITY: I don't have a problem with this bullying thing. That's not the point.

DAVIS: That is the point.

HANNITY: You know, what? There are a lot of good qualified people that were available for this job. Now, this is another area, Karen where, you know, what? He didn't have to go through the process because this was an appointment by the president. But if he's writing the books for the "Queering of Elementary Education" and writing the forward for that book, if he has this controversial past and controversial views and basically wanted -- admittedly wanted to say f-you to the religious community, the conservative religious community, does he seem like the best choice for that job?

KAREN HANRETTY, REPUBLICAN STRATEGIST: Look, this was a purely political appointment, this was President Obama trying to curry favor with a certain constituency within the Democratic Party. I think at the time he felt very weak with. But, you know, what strikes me is the level of intolerance that Mr. Jennings displaces to people who don't agree with him. He demands, I think he would like to mandate tolerance from people at the federal level as opposed to letting school boards and local legislators and local attorneys general deal with bullying issues at a local level. He wants to mandate it at a federal level and he wants to push a certain agenda that is far outside of mainstream America.

HANNITY: Where is the defamation Lanny, considering all of this is on the record? All of this is provable. And he even admits in this exiting interview, "there were times in the fall of 2009 when I really went home and curled up in a ball in my bed." And didn't want to get out of bed the next day.

Now, does that sound like somebody that -- go ahead.

DAVIS: I think Mr. -- well, I'm sorry, I thought you were done with your question. First of all, this is historic that you and I at least can agree on this program, on something, that his White House conference focusing on the problem of bullying even among kids who have sexual orientation.


HANNITY: This is not the point. I don't want bullying -- bullying shouldn't be in schools, I agree. But that's not the point.

DAVIS: So, we agree on that. On your question, Sean --

HANNITY: Is there somebody better qualified than a guy that didn't have enough common sense to tell a young sophomore that's having sex with an adult, give him better advice than, oh I hope you use a condom or is writing the forward for the "Queering of Elementary Education"? Are there better qualified people?

DAVIS: I don't think it is disqualifying, therefore I don't know whether there are better qualified people. I don't think it's disqualifying for someone who says, he made a mistake 20 years ago that takes away from the accomplishment in the Obama White House. And by the way ,Karen, I'm really shocked at political appointments. I know that never happened in a Republican administration.

HANRETTY: Look, I don't know how you can defend this man. You can go out there and make apologies for something that he says he regretted 20 years ago. But he has also done a lot since then that he certainly doesn't regret. And the forward that he wrote to this book, "Queering Elementary Education," where he says that children are learning to hate everyday in American elementary schools. Little children are learning to hate every day. And it is an indictment on teachers. It is an indictment on parents. It is an indictment on your pastors, and you community, and neighbors that say, if you do not agree with teaching, as young as kindergarten, homosexuality and what it means to be transgender and what it means to be bisexual that you are therefore instilling hate in children.

HANNITY: There's more than that. It goes a little deeper.

HANRETTY: It's far more than that, Sean. It goes deeper.

HANNITY: Let me give you an example.

HANRETTY: But let's not forget, this is a man who wants to force sexuality, I don't care if it is the homosexuality or heterosexuality. We should not be forcing sexuality on kindergartners or elementary school children, period. And that's his agenda.

HANNITY: Well, let's give me a quote to back this up because -- and Tony Perkins wrote about this. His research shows that in a 1997 speech Jennings embraced the idea of actively promoting homosexuality, it goes on and on.

Where he also, an unsigned article on the Glesson (ph) web site in 2000, declared the pursuit of safety and affirmation are one in the same goal.

Now, there's a big difference between stopping all bullying, which is a noble goal that I think I don't want to see any kids bullied in school and the idea that you are affirming or people to kids especially, whose parents may have different values, a lifestyle they disagree with Lanny.

DAVIS: No, I agree that teachers should be neutral on the subject of sexual orientation.

HANNITY: He doesn't.

DAVIS: There should be promotion of one type of sexuality or not, I disagree with. I think parents should feel that tolerance is a good thing. It is not the same thing to say that he's preaching tolerance as opposed to promoting something. I think Karen is mischaracterizing.

HANNITY: He writes the forward --

HANRETTY: No, I'm not.

HANNITY: -- for the "Queering of Elementary Education" --

HANRETTY: Queering is an agenda. Queering is an agenda in the educational system.

DAVIS: Well, I don't like the idea of advancing any particular agenda. I agree with you, Karen. I think he would say he favors tolerance and anti-bullying and even got Sean Hannity to agree with the latter.

HANRETTY: But not tolerance towards people who disagree with him, not tolerance --

DAVIS: He should be tolerant. I agree with you on that.


HANNITY: If he really wanted to stay there, he would have stayed. He couldn't take the heat nor should he had been appointed in the first place. You know what, telling the truth about him obviously got a lot of people involved.

Thanks so much, Lanny. Appreciate it. Thank you, Karen.

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