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This is a RUSH transcript from "The O'Reilly Factor," October 21, 2015. This copy may not be in its final form and may be updated.
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O'REILLY: Continuing now with our lead story, the city of San Francisco saying it will not change its policies that led to a seven-time illegal alien felon being released and eventually killing 32-year-ol Kate Steinle.

Joining us now from Livermore, California Kate's parents, Liz Sullivan and Jim Steinle.

Mr. Steinle, I begin with you. Your reaction to what's happened in San Francisco and Washington?

JIM STEINLE, FATHER OF KATE STEINLE: Surprised and disappointed mainly with our government. But we were back -- my son and I were back in Ohio a couple weeks ago and people would come up and ask us where is Kate's Law? Where is Kate's Law? And we kind of hum-hawed around it and talked about it but deep down when we was in Washington I didn't get the feeling any warm and fuzzy feeling that Kate's Law would hit -- would hit the senate or be passed.

So, when I heard about it again, kind of -- it's depressing and aggravating and we are a bit angry about it. But that's the government that we have now.

O'REILLY: Don't give up. Don't give up. Most people are with you. And we will hold these politicians accountable.

Miss Sullivan, what's your reaction?

LIZ SULLIVAN, MOTHER OF KATE STEINLE: Well, it's very frustrating to see how Washington doesn't work. It's pretty consistent and it's frustrating and it's aggravating and something needs to change. It's just business as usual -- nothing.

O'REILLY: Yes. And in San Francisco, they are aggressively proud of their sanctuary city program which just makes me even more furious, but we will continue to stay on it.

Now, Mr. Steinle, you have -- your family has started the Kate's endowment fund. It's Challenged Athletes Foundation, ChallengeAthletes.org. What is that and why did you found it in Kate's name?

Well, the foundation has been around for 25 years. And Kate's best friend, traveling friend Nicole's family started that. But it was a passion of Kate's and so we did the endowment with funds sent to us throughout the United States of people that didn't know us from a load of coal, but empathized with us and sent money in to Go Fund Me and we closed that and if you have any funds to send to Challenged Athletes.

But it's a foundation that supplies prosthesis, medical help and care to people that's lost arms and legs and so forth. And the first endowment fund went to a pair of six-year-old girls with spina bifida and her endowment pays for wheelchair and medical care for those two. So, that's part of Kate's legacy.

O'REILLY: That's just excellent.

STEINLE: We're just sad.

O'REILLY: Right. And you guys have been magnificent.

SULLIVAN: It's for special wheelchairs for them to participate in sports.

O'REILLY: Right. Right. Well, we are glad we can get the word out. You guys have been magnificent as I said. You are using the power that you have and the recognition you have to help other people as your daughter would want. And we won't give up this fight. And we will check back in with you. And we are all praying that Kate's Law gets passed. Thank you.

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