Sarah Palin was illegal and must repay nearly $400,000 to donors

A legal defense fund for former Alaska Governor Sarah Palin was illegal and must repay nearly $400,000 to donors, according to a settlement with a state-appointed lawyer announced on Thursday.But Palin, the feisty former Republican vice presidential candidate who has become a fixture of the conservative Tea Party movement, probably violated a state ethics act without knowing she was doing so, independent counsel Tim Petumenos said.

While governor, Palin faced some two dozen ethics complaints, which she said left her with a legal bill of more than $500,000. Her political action committee raised a fund to pay for her defense.A preliminary ruling by another independent counsel last year said the fund was illegal because it used her official position as governor to raise money for her personal gain.Petumenos confirmed the decision and said no such legal defense fund had ever been set up before for a state official in Alaska.

Palin violated the ethics rules because she was a beneficiary of the fund but probably relied on bad advice from out-of-state lawyers to conclude it was above board, Petumenos said at a news conference.He added that Palin should have checked with the state attorney general before pursuing the fund.

“It is the responsibility of every public official to make sure they are personally compliant with the (Alaska Ethics) Act,” he said.The deal requires Palin’s fund to give back to donors $386,856 collected while she was in office. A further $33,546 collected after she resigned will not be affected by the deal.Palin, no longer a public official, has launched a new defense fund. She is now independently wealthy but her lawyer, Thomas Van Flein, told reporters he still believed she ran up the legal costs in her capacity as governor and so a new fund was justified.(Reuters)

Sarah Palin plans to appear with Arizona Gov. Jan Brewer at a campaign event in Phoenix on Saturday

PHOENIX Former vice presidential candidate Sarah Palin plans to appear with Arizona Gov. Jan Brewer at a campaign event in Phoenix on Saturday.Brewer’s campaign says the event will feature the launch of a national effort to educate America about border security and encourage support for Arizona.The event comes amid increasing calls for a boycott of Arizona from cities and groups across the nation because of the state’s tough new law cracking down on illegal immigrants. National polls show strong support for the measure.

The Republican governor signed the law three weeks ago. Brewer automatically became governor last year after former Gov. Janet Napolitano was appointed Homeland Security secretary. Brewer now is seeking a full term in office.Brewer and Palin will appear at the 4:45 p.m. event in north Phoenix.

President Barack Obama dared Republicans to try to repeal his new health care law

IOWA CITY, President Barack Obama dared Republicans to try to repeal his new health care law, telling them Thursday to “Go for it” and see how well they do with voters in November.”Be my guest,” Obama said in the first of many planned appearances to sell the revamp before fall congressional elections. “If they want to have that fight, we can have it. Because I don’t believe the American people are going to put the insurance industry back in the driver’s seat.”

With emotions raw around the nation over this week’s Democrats-only vote to approve the nearly $1 trillion redesign of the health care system, Obama took the opposition to task for “plenty of fear-mongering, plenty of overheated rhetoric.”

“If you turn on the news, you’ll see that those same folks are still shouting about how it’s going to be the end of the world because this bill passed,” said Obama, returning to the college town where, as a presidential candidate three years ago, he unveiled his plan to provide health care for all.

No Republican lawmakers voted for the 10-year, sweeping package that Obama signed Tuesday and will shape how almost every American will receive and pay for medical treatment. Many in the GOP are predicting it will prove devastating in November for the Democrats who voted for it.

Senate Republican leader Mitch McConnell of Kentucky said the GOP won’t give up “until this bill is repealed and replaced with common-sense ideas” that won’t dismantle the current system and increase the debt.

Some Democratic lawmakers have faced threats and vandalism because of their votes. Obama didn’t mention the incidents.

The president stressed the notion of a promise kept. As the crowd broke into a chant of “Yes we can!”, Obama corrected them: “Yes we did!”

Challenged by a young man in the audience who shouted several times, “What about the public option,” a liberal-backed proposal for the creation of a government-sponsored plan to compete with private insurers, Obama said: “We couldn’t get it through Congress.”

“This legislation is not perfect, as you just heard,” the president said. “But what this is, is a historic step to enshrine the principle that everybody gets health care coverage in this country, every single person.”

Afterward, Obama visited Prairie Lights Books – killing two birds with one stone. He had highlighted the store in his speech as a small business that has offered coverage to full-time employees for 20 years, but is struggling to continue to do so after its premiums rose last year by 35 percent. Obama also has frequently complained of his inability as president to do regular things – like browse a bookstore.

The White House suggests it has the upper hand on the issue politically, arguing the GOP risks a voter backlash because a repeal would take away many benefits. Among them are tax credits for small businesses to provide health care to their workers and $250 rebates for seniors to help pay for their presciption medications.Obama spoke as Democrats in Washington raced to complete the overhaul with a separate package of fixes to the main bill.

Senate leaders finished work Thursday on the fix-it legislation, already approved in the House. But Republican attempts to derail the bill resulted in minor changes, meaning the House must vote on it again before Obama can sign it. The House vote was expected by evening. (AP)