A California federal judge has issued an order, indicating that 437g(a)(4) (the requirement that the FEC conciliate matters before filing suit) may not mean what you might think it does:
On November 15, 2006, the FEC notified Defendant of the finding of probable cause and provided a proposed conciliation agreement seeking a civil penalty of $106,000. Thereafter, the FEC and Defendant had at least one telephone conversation to discuss the terms of the proposed conciliation agreement, specifically the civil penalty. (Mot. To Dismiss Exs. D, E.)
On December 14, 2006, after the parties discussed the FEC draft conciliation agreement over the telephone, Defendant submitted a letter and a proposed revised conciliation agreement to the FEC, offering to pay $31,000 as a civil penalty. (Id. Ex. D.)
So you’d expect the bill to come out somewhere between $106,000 (yow!) and $31,000. But then - nothing happens. For quite some time. Then:
On May 22, 2007, the FEC sent a letter formally rejecting the revised conciliation agreement. After the FEC voted to authorize the filing of a suit, but before the suit was filed, the parties again attempted to reach a conciliation agreement. On July 2, 2007, the FEC sent a letter to Defendant formally rejecting his offer of $56,000.
… Defendant contends that a proper attempt at conciliation did not occur because the FEC did not timely respond to his counter-proposal. For support, Defendant states that the FEC improperly delayed the conciliation process by failing to respond to his counter-proposal until “4 months and 1 day (or 121 days) after timely receipt of proposed conciliation agreement, and 62 days after expiration of the 90 day maximum conciliation period.” The FEC does not dispute this point. Instead, the FEC argues that it only had to respond to Defendant’s counter-proposal “if the agreement were acceptable . . . [and] . . . silence in response was a rejection of defendant’s counteroffer.”
“Where did that file go again? Oh yeah, it’s under the short leg of the coffee table . . . ”
By the way, this matter involves an enthusiastic Republican billboard magnate and his failure to properly report or include disclaimers on some pro-Bush billboards.