A state representative in the race to become the next Tennessee House speaker has owned and operated an international Christian magic supply company out of his home but has not registered or disclosed the business with the state.

Deputy Speaker Matthew Hill, R-Jonesborough, also has ties to two companies doing political work — including one receiving money from his own campaign — and two years ago nearly faced foreclosure on his home.

Now, Hill is crisscrossing the state making the case to his Republican colleagues about why he should be speaker and handing out campaign checks in an effort to show he has the fundraising abilities to lead the House GOP.

Hill is the owner of Dock Haley Gospel Magic, an online business that he and his wife operate out of their basement. The company sells Christian-themed magic supplies and teaching aids to customers around the world who use magic shows as a form of evangelism.

Hill said he has "never made a dime off" the company and that any money generated goes back to the individual from whom he and his wife bought the business two years ago.

"It's mine and my wife’s ministry is what it is," Hill said of the company, which sells products to "Christian magicians, church workers and missionaries."

Drew Rawlins, executive director of the state Bureau of Ethics and Campaign Finance, said that a lawmaker should be required to disclose the business if it is producing income, even if it is being used to repay the previous business owner.

Members of the General Assembly are always required to disclose sources of income over $200, according to information provided by Rawlins.

Regardless of revenue, legislators must disclose any investments in business entities if the investment is more than $10,000 or represents 5% of the business's total capital.

Dock Haley Gospel Magic is also not registered as a business in Tennessee, according to records with the Secretary of State, Washington County and the town of Jonesborough.

A representative from the Washington County clerk's office who reached out to the state Department of Revenue on Wednesday said the state department had no record of a business license for or dealings with Dock Haley Gospel Magic.

Hill did not answer follow-up questions about whether he has paid taxes on the business, but released a statement saying he would make unspecified changes to be in compliance with the law.

"We are working to ensure Dock Haley Gospel Magic is operating in accordance with state and local law, and we will take any and all corrective action if any is necessary," Hill said.

Hill declined to elaborate on what action he planned to take or whether he would pay any potential back taxes. Doug Kufner, a spokesperson for the House Republican Caucus, said Hill is "seeking clarity on whether any corrective action is necessary."

2 years after near foreclosure, Hill is attempting to prove fundraising abilities

House Speaker Glen Casada, who is resigning his leadership position Aug. 2 after a vote of no confidence by House Republicans, appointed Hill to several leadership positions this year. In addition to deputy speaker, Hill chairs four committees.

Traversing from one end of the state to the other in recent weeks, the East Tennessee Republican said he has been questioned about whether he would be able to raise money — a job at which Casada was skilled — if he became speaker.

Hill, 40, said that during many of his recent meetings with other members in which he's seeking to earn their vote, he has been writing $1,000 checks, though "the check is not contingent on if they say yes or no" to supporting him.

The next campaign finance disclosures aren't due until mid-July. Hill declined to say how many checks he had written other than the number was less than 50.

He also declined to say who his benefactors are, but that the funds came from "local businessmen" in his district who are supportive of his bid for speaker. Hill received the donations through and is writing the checks from a political action committee belonging to his brother, Rep. Timothy Hill, R-Blountville.

In 2017, foreclosure proceedings were underway on Hill's home in Jonesborough, which he said was a result of him getting behind on payments.

In late March 2017, less than a month before the house was scheduled to be auctioned, a notice appeared in the Jonesborough Herald & Tribune.

The foreclosure never went through, though Hill declined to say how he paid for the home, other than he "made the money."

"I didn’t get it from any private sources," Hill said.

After Casada, questions remain about political businesses at statehouse

Hill chairs the House Ethics Committee, through which he most recently was tasked with administering an advisory opinion about how Casada dismissed his former chief of staff. The process drew criticism from Rep. Mike Carter, R-Ooltewah, who is also attempting to become speaker.

Casada has faced questions surrounding his hiring of political operatives to serve in various capacities in state government.

Although Hill has attempted to distance himself from Casada in many ways — including after the May 20 no confidence vote when he signed a statement from caucus leadership that said Casada should step down — he also has ties to political companies.

Hill’s statement of disclosure of financial interests this year shows he is paid by three companies: Right Way Marketing and Marathon Strategies, of which Hill is a part owner, as well as Information Communications Corp.

Right Way Marketing is a Johnson City-based company that provides get-out-the-vote services and political robocalls, according to the business’s LinkedIn page. Hill is a minority owner in the company, which he co-owns with his brother Timothy Hill.

Hill’s mother is also employed by the company, according to statements of disclosure filed by Kenneth Hill, who is the father of the lawmakers. Kenneth Hill is the vice chairman of the Tennessee Public Utility Commission.

Since 2016, Right Way Marketing has been paid $109,000 by 28 candidates for office or political action committees. Matthew Hill has paid Right Way Marketing $16,600 in campaign funds. Timothy Hill, who is the only registered agent of Right Way Marketing, has not reported spending any campaign funds on his company.

Like Right Way Marketing, Marathon Strategies is based in Johnson City and has done political work for candidates. Hill owns Marathon Strategies with his brother and with Rep. Micah Van Huss, a fellow Republican from Jonesborough.

In 2018, two candidates — Rep. Rick Eldridge, who was elected to the legislature in the general election, and Eugene Bulso — paid Marathon Strategies $370,500. The payments were for advertising and “professional services.”

Neither Right Way Marketing nor Marathon Strategies has an active website.

Hill said that if he becomes speaker, he will step away from the operations of Marathon and Right Way. He said he had not considered whether he would continue as an owner with the companies.

"If I need to get out of the businesses I can," Hill said. "I just don’t want to give away my shares."

He said he would also step down from Information Communications Corp., which owns four radio stations in Tennessee and one in Virginia.

Hill plans to continue his work with WHCB, a Christian radio station operated by Appalachian Educational Communication Corp., a nonprofit of which his father is president and CEO.

Hill said he receives no money from the station and volunteers his time as the host of a daily children's radio show called "Bible Buddies with Mr. Matthew."

Hill says he would likely not prohibit staffers from having side political companies

When Casada began to face scrutiny this session for his leadership style, some lawmakers were concerned that he was rewarding those close to him. The speaker gave special work arrangements to at least two legislative employees who also owned companies that provided political services.

While Hill said he would not permit someone to conduct business on state time, he does not believe legislative staff members should be prohibited from also running political companies on the side while employed at the statehouse.

"I don't know if the speaker does or should have the purview to tell people they can't have additional jobs or earn additional income," Hill said. "Now, they should not do it on taxpayers' dime."

Like Casada, the Hill brothers’ personal connections to political businesses extend to at least one current legislative employee: Nicholas Castle, Timothy Hill’s legislative assistant.

Castle is the “chief strategist” of NJP Strategies, a Kingsport-based company, according to his LinkedIn profile. In December he began working for the legislature as Hill’s assistant.

In 2018, Matthew Hill used $15,500 in campaign funds to pay NJP Strategies. Timothy Hill paid the company $10,150 in campaign funds during the 2018 election cycle.

Since 2017, the only other lawmakers to pay NJP Strategies using campaign money have been Casada’s political action committee and Van Huss.

It is not clear what type of work NJP Strategies does. The company does not have a website.

"There is several up here that has side businesses," Hill said when asked about Castle's work. "Maybe we need to look at what the state pays our (legislative assistants). I don't know if he's still doing it or not."

Hill previously faced scrutiny over donor from raided drug treatment center

Meanwhile, Hill and his brother downplayed news last year when the federal Drug Enforcement Administration raided an addiction treatment center owned by one of their contributors.

At the time, no one was arrested or charged with a crime, but agents looked through medical and financial records, according to Tom Reach, the founder and president of Watauga Recovery Centers.

Before the raid, Reach had donated $14,500 to nine lawmakers, according to campaign finance records.

Watauga Recovery Centers had donated an additional $8,400 to many of the same politicians, including the political action committee of the House Republican Caucus.

Among the top recipients of donations from Reach and Watauga Recovery were Reps. Matthew and Timothy Hill.

Matthew Hill received $4,700 in contributions from Reach and the recovery center, while Timothy Hill accepted $2,500 over a two-year period.

Hill said this week that Reach was not one of the local businessmen who have donated to help his efforts to become speaker.

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Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29. Reach Natalie Allison at nallison@tennessean.com. Follow her on Twitter at @natalie_allison.