This is a rush transcript from "Hannity," March 17, 2010. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: And this is a Fox News Alert. Now sources on Capitol Hill are telling Fox News that the nonpartisan Congressional Budget Office and their scoring of the Democrats' health care bill will arrive tomorrow.

Now that means that the earliest that a vote could take place in the House is Sunday. Now still tonight the Democrats are short of the 216 votes that they need to pass the bill.

Now it's estimated that up to 50 Democrats have yet to make up their minds on how they will vote. And many of those members are waiting on the CBO score to be released. And until that happen well, we won't know how much that this piece of legislation actually costs.

And joining us tonight now from Alaska is Governor Sarah Palin.

Governor, welcome back to the show.

• Watch part 1 of Sean's interview | Part 2

SARAH PALIN, FORMER ALASKA GOVERNOR: Thank you so much, Sean. Glad to be here.

HANNITY: By the way, David Letterman will be upset, we actually fixed the delays. So thanks again for being with us.

All right. First of all, as you stand, we are all watching this debate on health care. We're talking about 1/6 of our economy. Where you stand, what do you see happening with this bill right now?

PALIN: Unfortunately, I think we're entering this new normal, if you will. The normalcy that will be coming out of D.C. as a result of this corrupt process that Pelosi and Reid and Obama want to use is going to, I think, knock down a gate and herding through the open gate now will be more policy changes, more legislation to follow that will fundamentally transform this nation, as had been promised by Barack Obama.

I think they wouldn't be talking so aggressively, so enthusiastically about actually taking the vote this weekend if they didn't have the votes already lined up. It's unfortunate, but again I think it's a new reality, a new normal in America that this kind of process is being embraced by our leaders in Washington, D.C..

HANNITY: Yes, you know, our own Bret Baier had an interview with the president earlier today. And I thought he did a very good job of pressing the president on the process — on what they're going to deem this bill passed in the House when they never voted on the bill in the House.

And we'll get to the constitutional issue in a second. The president's answer is, that what I can tell you is that the vote that is taken in the House will be a vote for health care reform. He said if people vote yes, whatever form it takes, they're voting for the health care bill.

But that's not really what's happening is it?

PALIN: No. That's not what's happening. And you know, we've spoken a lot, Sean, about what real health care reform, with a lot of broad based support, could look like for America.

It could be patient centered. It could be free market oriented and it could actually have some results. This isn't reform. This is government takeover. This is about control. And the process that's being used by Pelosi — I think she's kind of the front man for this, or the fall-guy for this one, because surely I'd have to believe she's not just thinking this up, this unconstitutional process, but she is the spokesperson for it and the one pushing for it.

I think it's quite unfortunate. And we can't allow ourselves to get down or depressed about this, though. I'm encouraged when I see so many Americans rising up against this process being used.

This has been a really educational time for most Americans to realize that if we do not hold our politicians accountable, if we don't hold their feet to the fire and call them on these made-up deem and pass process that Pelosi and others want to use right now, then things like this can be crammed down our throats.

It's against the will of the people. It's undemocratic. It's un-American, this process, and if we don't stand up and become very, very enthused about calling our politicians on this, then more of this is going to take place.

HANNITY: And the Constitution is very clear on this, which is part of the reason. The New York Post today, pretty stinging editorial on their page today, said Nancy Pelosi is a coward, a bully, and a hypocrite and Barack Obama is hiding behind her skirt.

So what does that make him? What do we to make of — if they have to bribe senators, and we don't know about what's going on in the House right now. We don't know what dollars American people eventually will pay for their votes.

So they're buying votes. They're changing the rules in the middle of the game. They're saying that they voted for a bill. They didn't vote for it. They're only voting for a rule change.

What does it say about where we are in this country right now?

PALIN: This is a scary place for America to be right now, Sean. Everything that our leaders in D.C. are doing now with this Obamacare, this government take over of health care, goes against the will of the people.

We've learned through America's history that the government that governs least governs best. And that all political power is inherent in the people. Government originates just from the will of the people. It's implemented according to the will of the people.

This goes against the will of the people. And the process is, as other experts are going to tell you — Constitutional law professors even will tell you — the process that Pelosi is pushing right now is unconstitutional.

This bill will not have been passed by both Houses in Congress and that is — that's unconstitutional. It's cut-and-dried, it's white and black, it's quite clear to most Americans that this isn't right. And not only, again, does it go against the will of the people, but it goes against our own Constitution. What? The Constitution not worth the paper that it's written on then.

HANNITY: Yes. It really is a question. We're talking about Article 1, section 7 of the United States Constitution.

PALIN: Right.

HANNITY: It is very clear that Congress is required to present the president with a bill that was identical in both Houses. That's not the case. The Senate voted on this particular bill, the House won't even vote on it. This supposed to be specifically a yay or nay vote.

Our mutual friend, the great one, Mark Levin, and the Landmark Legal Foundation, they have now, if this Slaughter rule is used, they have prepared — I've put it up on my Web site. They have prepared a court challenge as to the constitutionality of it. There's also been talk about the constitutionality of mandates.

From your perspective, do you think these — how do you think these will do in court?

PALIN: Well, the legal proceedings and the wrath of the public, our Congress will hear the American voice finally on this. They've gone now a year ignoring the American voice being opposed to this. And I would hope that yes, this will be successful in a court of law, this challenge to this unconstitutional process.

But certainly, the voice of the people via this wrath that Congress is going to feel if they go ahead and adapt this thing, shove it through, it's going to be great. But I think, Sean, that in our lifetime this is the most undemocratic, un-American step that will have ever seen our Congress take.

It's appalling. It's — it takes my breath away that they would think this is OK to do. But again, we can't feign surprise. Remember this is what Barack Obama had promised in the campaign. He said — as a candidate said he was just days away from beginning the transformation of America.

Now a lot of us love America and we don't want to see this transformation into something that is unrecognizable, this European-style of health care in this case we're talking about. But no, so many of us who love America and believe in what our founding fathers providentially had crafted for us via our documents including our Constitution, we don't agree with this fundamental transformation of America that Obama promised us.

We voted for him anyway. He was elected anyway. And now Americans are kind of realizing that's what he meant by a fundamental transformation of our great country.

HANNITY: Governor, stay right there. We're going to have more with Governor Sarah Palin.


HANNITY: And we now continue with former Alaska governor, FoxNews contributor, Sarah Palin. We've talked a lot about the process. The president addressed that in his interview with Bret Baier tonight. And I guess the question is, is that whether they're successful or not, we're looking at all the polls.

First time the president is upside down in the Gallup Poll. Rasmussen poll has had him at some of the lowest ratings he's had since he's been president of the United States. Right track, wrong track, generic ballot — now Republicans are up by 10 points. They haven't been up by 10 points in years.

Is it too early to read what's going to happen in November elections? You know American — the American people at times have been known to have short term memories.

PALIN: Yes, but I think what's going on right now is it's the independent American, the independent thinker, not obsessed with partisanship at all. Probably not even registered in one party or another.

But independent Americans are realizing, OK, we're going down a path that is not good for our country, not good for our children, this debt we're incurring, this takeover of 1/6 of our economy, with health care, this kind of coddling of terrorists.

As we try to win the War on Terror so many independent Americans are saying, you know, I think this next go round in these midterm elections I'm going to be casting my vote differently than how I cast it back in '08.

I think that you're going to see some shift there, Sean. But look at what's going on now in Congress with Pelosi, with Reid, with Obama, we're seeing desperation. Desperate people do desperate things. They are so desperate to get this health care thing passed through, shoved down our throats really, so that there is in their minds a win check mark in that column for President Obama.

That they are resorting to these desperate measures. And this does not bode well for those members of Congress who are up for reelection in the midterms. They're being looked at as a bunch of wimps. They're sheep. They're following something that I think a year or two years ago they would never had considered to follow an unconstitutional process and not actually vote on a bill before they're going to deem that it has been passed.

So this does not bode well on those non-independent thinkers in Congress who are acting like sheep and just going along to get along with Pelosi and with Reid.

HANNITY: That's the odd thing to me. Look, you're in the political world. I understand this is the Holy Grail for rigid ideologues like the president, Nancy Pelosi and Harry Reid. I get where they're coming from. I kind of saw this about President Obama early on.

What I don't get: Is there any Democrat here with a conscience that's going to speak out and say what you just said? That this process is corrupt, unconstitutional?

Now interestingly, the president did when he was in the minority party. Joe Biden did when they were in the minority. Hillary Clinton did when they were in the minority. I mean it's classic hypocrisy. But I would think why would all these Democrats walk the plank? Is it the pressure of wanting to be liked in Washington?

PALIN: They're like a bunch of dead fish. And only dead fish can go with the flow. And that's what we're seeing right now, Sean.


PALIN: You know, from my personal experience as mayor and a city manager and as a governor I've had to buck my party many times. I had to go against what the party leadership insisted that members of the party do because I couldn't sleep well at night.


PALIN: So I have a hard time too believing that these members of Congress can sleep well at night knowing that they're going against the will of the people, they're going to against our own Constitution. Yet they're going along just to get along with Pelosi and Reid and Obama.

HANNITY: You know, it's interesting because I've been the same way my career. Like I always — I love President Bush. I think he kept the country safe. I opposed him strongly on immigration, opposed him strongly on Medicare prescription drugs, opposed the amount of spending by Republicans.

That independent streak is missing from the Democratic Party. And that's almost —

PALIN: It is missing.

HANNITY: Go ahead.

PALIN: It is missing and that's unfortunate because it's independent almost pioneering spirit that courses through America's veins and has made us into the country that we are. And I think more and more on the left who are just obsessed with this partisanship and obeying the leaders of the party right now to their constituents' detriment.

It's going to catch up with them. And that's what you're seeing, Sean, with the Tea Party movement and with others who are rising up and wanting their voice to be heard. And these are independent thinkers out there in America rising up and being so involved now.

They are wanting from their elected leaders that independence and asking them to have the moral courage to do what is right. Don't just do what your leaders are telling you to do.

Again it's to the detriment of the constituents this path that they are on.

HANNITY: Yes. Everything we talked about. Unconstitutional changes in the rules, last minute, we'll deem the bill passed, we'll buy off senators, we'll buy off congressmen. On top of that this bill creates 159 new offices, agencies, programs, nearly half a billion in Medicare cuts, you know, all — taxpayer covered abortion.

You wrote about this in your latest Facebook. You know, Bart Stupak, supposed to be pro life. A lot of those 12 congressmen apparently are leaving. But you wrote something that he was being told that in fact hey, listen, more children will be born therefore, it will cost us millions more.

Did you actually — you read that quote obviously that he said?

PALIN: Yes, I did. And that — you know it got us back again thinking, too, those who believe that the most promising precious ingredient in this kind — sometimes kind of mixed up world that we live in, is not a child?

A child is the most promising ingredient in this world. And for that type of thinking to be involved now in the Obamacare debate that well, gee, more babies to be born in this world like that would be a bad thing, that's absolutely appalling.

But, Sean, you're making a good point, too. And we have strayed in this last week because we're so concerned about the process that's being used and abused right now to get this thing rammed down our throat that the substance of the bill or bills itself hasn't been discussed as much.

Americans do need to stay focused on what is in Obama care and realize that, you know, there are still, as you point out, the 150 some new bureaucracies and commissions and offices that will be in control of our health care. That's just one aspect of this that we need to get back to remembering what is in this bill.

Tough to remember what's in the bill, though, because as even Obama has suggested, he doesn't even know what's in the bill. Pelosi, she said gee, we've got to pass the bill and then we'll find out what's in it.


PALIN: Some scary things going on now.

HANNITY: Governor, great to see you and thanks for being with us. By the way, I've been to 48 of the 50 states. One that I haven't been to is Alaska but that shot behind you, your backyard, it's one of the most beautiful I've ever seen. Quite majestic. And we thank you for being with us tonight.

PALIN: Thanks so much. You got to get up here. It will thaw soon and that's a lake that you can fish in. So come on up and join us.


HANNITY: All right. The fish better be weary. I'm a pretty good fisherman.

Governor, thank you for being with us.

PALIN: Good. Thank you.

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