Hart used campaign cash to pay lawyer

BOISE (AP) — State Rep. Phil Hart said he paid his lawyer $1,000 in campaign funds to defend him during a House ethics panel investigation two years ago.

Hart, a four-term Republican from Athol, faced ethics complaints over his pending tax dispute with the Idaho State Tax Commission and allegations he illegally harvested timber from state land to construct his house.

Hart confirmed this week that he paid lawyer Starr Kelso with money taken from his campaign account, a move considered legitimate and legal under state rules. State election officials say campaign cash can be used for anything related to being a holder of public office.

"There's nothing prohibiting that," Secretary of State Ben Ysursa told The Spokesman-Review (http://bit.ly/Ip3jsY ) in a story published Tuesday.

Even though Idaho law doesn't specifically address the use of campaign dollars for legal defense, Ysursa said there is no conflict in federal rules.

"We look to the feds for some guidance, and they have in the past indicated that legal defense fund use of campaign funds was OK."

Hart said he checked on the rules before paying his attorney with campaign funds.

"If you read the regulations, it's anything that kind of falls in line with your work as a legislator is a legitimate expenditure," he said.

Idaho law prohibits campaign funds from being converted to personal use, defined as expenses that would exist "irrespective" of being a candidate or public office holder, ranging from mortgage payments to country club dues.

Hart faced three ethics complaints in 2010 and 2011, inquiries that cost him his seat on the House tax committee and his position as vice chairman of the transportation committee. He also apologized to the House for his actions.

The payment to Kelso was 40 percent of Hart's campaign spending in 2011, according to his most recent campaign finance report, which covers the period from Jan. 1 to Dec. 31, 2011. The next deadline for campaign finance reports in the state races is May 8, just a week before Idaho's May 15 primary election.

Kelso continues to defend Hart on other cases. In his battle with the state, Hart is vowing to continue to fight a state order that he pay more than $53,000 in back state income taxes, penalties and interest, even though he's already lost five appeals, including the latest to the state's highest court.

"We're going to meet in the next week or so and at least talk about it," Hart said.

Hart also is the target of a federal lawsuit from the U.S. Justice Department seeking to foreclose on his Athol, Idaho, home for $550,000 in back federal income taxes, penalties and interest. Trial in that case is scheduled to begin Nov. 6.