Political Action Committee Appeals $5.2 Million Penalty
May 2008

On Friday, May 9, All Children Matter filed notices to appeal a $5.2 fine issued against it with the Franklin County Common Pleas Court.

On February 4, 2008, the Ohio Elections Commission issued a record $5.2 million fine against two political action committees for violations of Ohio campaign finance limits. The matter arose as a result of a series of transfers totaling almost $870,000 between two PACs operated by All Children Matter, Inc., (“ACM”), one in Ohio and the other in the state of Virginia. A complaint filed last year by Secretary of State Jennifer Brunner alleged, among other things, that the Virginia PAC was not properly registered in the state of Ohio and could not legally transfer funds to the Ohio PAC. ACM argued that the Ohio and Virginia PACs were affiliated, thus could transfer unlimited money between them.

The Elections Commission levied fines against both the Ohio and Virginia PACs for exceeding state contribution limits by transferring funds from its Virginia PAC into its Ohio PAC. The Ohio PAC was also fined for accepting the funds. Both PACs were fined for not filing several campaign finance reports and the Virginia PAC was fined for not designating a treasurer in Ohio.

The appeal by All Children Matter argues that the Ohio Elections Commission's finding does not comply with state law and violates the PAC's First Amendment rights. Moreover, it argues that Ohio's definition of a "political action committee" is unconstitutional.