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Fact check: Does Betsy DeVos owe Ohio taxpayers $5 million?

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Betsy DeVos

January 26, 2017
By Fact Check by Ballotpedia staff

In a January 18, 2017, press release, U.S. Senator Sherrod Brown (D-Ohio) announced he would oppose the confirmation of Betsy DeVos as secretary of education.[1] Brown said a primary reason for his opposition is that DeVos hasn't paid fines levied by the Ohio Election Commission.

“If Betsy DeVos wants to support education, she can start by paying the $5 million she owes Ohio taxpayers – that could support nearly 100 more teachers across our state,” Brown said in the press release.[1]

Is Brown correct in saying that Betsy DeVos owes Ohio taxpayers $5 million in unpaid fines?

No. Brown is referring to fines levied in 2008 against All Children Matter, a national political action committee, and its state affiliate, All Children Matter Ohio PAC.[2] DeVos was a director of All Children Matter in 2008, but she does not have any legal responsibility to pay the fines levied against the PAC.

Background: DeVos and All Children Matter

Betsy DeVos is the former chairwoman of the Windquest Group, an investment management firm in Michigan, and the former chair of the Republican Party of Michigan. On November 23, 2016, Donald Trump’s presidential transition team announced DeVos as the incoming president’s choice for secretary of education.[3]

DeVos has been active in the school choice movement, supporting efforts to introduce or expand charter schools and school voucher programs. DeVos served as a director of All Children Matter (ACM) between June 2005 and November 2015, although her public financial disclosure form filed with the U.S. Senate states that she ceased being an active director in 2010.[4]

On its now defunct website, ACM described its mission as “working to elect public officials who support school choice and education reform.”[5]

ACM and the Ohio Elections Commission

The Ohio Elections Commission is a state agency empowered to issue advisory opinions about Ohio election laws and to hear complaints alleging violations of those laws.[6] The commission can levy administrative fines, which are paid into the Ohio Elections Commission fund.[7]

If the commission notices criminal activity, it can refer a complaint to the prosecutor’s office of the county where the alleged violation occurred or to the Franklin County Prosecutor’s Office for statewide cases.[7]

In 2006, ACM requested an advisory opinion from the commission regarding how it could contribute funds to its state affiliate, All Children Matter Ohio PAC, Inc. (ACM Ohio). The commission issued its opinion on May 25, 2006. According to the opinion, ACM was required to file a statement of organization with the Ohio secretary of state’s office prior to making any contribution to ACM Ohio.[8]

During the 2006 election cycle, ACM contributed $870,000 to ACM Ohio. In February 2007, the secretary of state’s office filed a complaint with the Ohio Elections Commission against both ACM and ACM Ohio alleging that both organizations violated state law by failing to file a statement of organization.[2] (ACM subsequently registered with the secretary of state’s office on March 18, 2011.)[9] On April 25, 2008, the commission assessed fines against both PACs totaling $5.2 million, having found that ACM and ACM Ohio had violated election laws.[2]

ACM and ACM Ohio appealed the fines, but in 2010 an Ohio appeals court dismissed the appeals on technical grounds.[10] [2]

The fines were not paid. The matter reportedly was referred to the Office of the Ohio Attorney General for collection, commission executive director Philip Richter told The Columbus Dispatch in 2014.[11]

ACM Ohio is listed as inactive by the Ohio secretary of state’s office, having filed a notice of termination on January 6, 2016.[12] ACM is listed as active, but had no money on hand as of April 18, 2016, according to its most recent filing with the secretary of state’s office.[13]

Liability

Ohio law does not hold officers of a PAC personally responsible for fines levied against the organization.[14] The treasurer of a PAC is responsible for making sure all official reports are correct.[15]

DeVos never served as treasurer for ACM, only as a director.[4]

Conclusion

In a press release announcing his opposition to the confirmation of Betsy DeVos as secretary of education, Sen. Sherrod Brown (D-Ohio), claimed, “If Betsy DeVos wants to support education, she can start by paying the $5 million she owes Ohio taxpayers – that could support nearly 100 more teachers across our state.”[1] Brown is incorrect in implying that DeVos owes $5 million to Ohio taxpayers.

Brown is referring to unpaid fines levied against All Children Matter, a national political action committee, and its now defunct state affiliate, All Children Matter Ohio, for violations of state election law. DeVos was a director of All Children Matter when the fines were levied, but PAC officers are not personally liable for such fines under Ohio law.


See also

Sources and Notes

  1. ↑ 1.0 1.1 1.2 Sherrod Brown, Senator for Ohio, “Brown Will Not Support Betsy DeVos’ Nomination as Education Secretary,” January 18, 2017
  2. ↑ 2.0 2.1 2.2 2.3 The Court of Appeals of Ohio, Tenth Appellate District, “All Children Matter v. Ohio Secretary of State,” February 4, 2010
  3. ↑ Ballotpedia, “Betsy DeVos,” accessed January 24, 2017
  4. ↑ 4.0 4.1 U.S. Office of Government Ethics, “Executive Branch Personnel Public Financial Disclosure Report,” January 17, 2017
  5. ↑ All Children Matter, “Home,” accessed January 24, 2017
  6. ↑ Ohio Secretary of State, “Ohio Campaign Finance Handbook,” accessed January 24, 2017
  7. ↑ 7.0 7.1 Ohio Elections Commission, “3517-1-14 Penalties,” accessed January 24, 2017
  8. ↑ Ohio Elections Commission, “Advisory Opinion 2006ELC-03,” May 25, 2006
  9. ↑ Ohio Secretary of State, “Elections and Voting: Campaign Finance,” accessed January 24, 2017
  10. ↑ ACM and ACM Ohio appealed the fines by filing lawsuits against the secretary of state. The court ruled that the lawsuits should have been filed against the Ohio Elections Commission, not the secretary of state.
  11. ↑ The Columbus Dispatch, “Political action committee fined $100, still owes the state $5.2 million,” July 18, 2014
  12. ↑ Ohio Secretary of State, “Elections and Voting: Campaign Finance,” accessed January 24, 2017
  13. ↑ Ohio Secretary of State, “Elections and Voting: Campaign Finance,” accessed January 24, 2017
  14. ↑ Ohio Revised Code, “Chapter 3517: Campaigns; Political Parties,” accessed January 24, 2017
  15. ↑ Ohio Secretary of State, “Ohio Campaign Finance Handbook,” accessed January 24, 2017
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