Combat Veterans for Congress Political Action Committee v. Federal Election Commission

983 F. Supp. 2d 1, 2013 WL 5425098, 2013 U.S. Dist. LEXIS 140450
CourtDistrict Court, District of Columbia
DecidedSeptember 30, 2013
DocketCivil Action No. 2011-2168
StatusPublished
Cited by4 cases

This text of 983 F. Supp. 2d 1 (Combat Veterans for Congress Political Action Committee v. Federal Election Commission) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Combat Veterans for Congress Political Action Committee v. Federal Election Commission, 983 F. Supp. 2d 1, 2013 WL 5425098, 2013 U.S. Dist. LEXIS 140450 (D.D.C. 2013).

Opinion

*5 MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

Plaintiffs Combat Veterans for Congress Political Action Committee (“CVFC PAC” or “Committee”) and David H. Wiggs, in his official capacity as CVFC PAC’s Treasurer, bring this action against Defendant Federal Election Commission (“Defendant” or “Commission” or “FEC”) seeking to set aside or modify Defendant’s November 4, 2011 Final Determination purporting to find Plaintiffs liable for violating the reporting provisions of 2 U.S.C. § 434(a) and assessing fines against Plaintiffs totaling $8,690.00. Currently before the Court are Plaintiffs’ [18] Motion for Summary Judgment and Defendant Federal Election Commission’s [22] Motion for Summary Judgment. Upon consideration of the parties’ submissions, 1 the relevant legal authorities, and the record as a whole, the Court GRANTS Defendant’s [22] Motion for Summary Judgment, and DENIES Plaintiffs’ [18] Motion for Summary Judgment.

I. BACKGROUND

A. Factual Background

1. FECA’s Administrative Fine System

The Federal Election Campaign Act of 1971, as amended and codified at 2 U.S.C. §§ 431^157, was enacted by Congress as part of a comprehensive system regulating the financing of federal election campaigns. The Act, as part of an extensive campaign finance regime, imposes significant requirements for public disclosure of contributions and expenditures made or received by political committees in connection with federal elections. 2 U.S.C. §§ 432-434. The Act also created the Federal Election Commission, an independent agency of the United States government with exclusive jurisdiction over the administration, interpretation, and civil enforcement of the Act. See generally 2 U.S.C. §§ 437c(b)(1), 437d(a), 437g. Congress empowered the Commission to “formulate policy with respect to” FECA, 2 U.S.C. § 437c(b)(1), and authorized it to make “such rules ... as are necessary to carry out the provisions” of the Act. 2 U.S.C. §§ 437d(a)(8), 438(a)(8).

As part of the disclosure regime set up by FECA, political action committees, through them treasurers, must file periodic reports detailing the committee’s receipts and disbursements. 2 U.S.C. §§ 434(a)-(b). The Commission is authorized under the statute to assess civil penalties for certain violations of the reporting provisions of the Act. 2 U.S.C. §§ 437g(a)(5)(A)-(B). FECA requires each political committee to have a treasurer, who must be designated on the committee’s statement of organization, which is filed with the Commission. 2 U.S.C. §§ 432(a), 433(b)(4). The treasurer keeps and preserves records on behalf of the political committee, 2 U.S.C. § 432(c), (d), and signs and files reports with the Commission on behalf of the committee, 2 U.S.C. § 434(a)(1).

In 1999, Congress amended 2 U.S.C. § 437g(a)(4) to add a streamlined adminis *6 trative fines system for filing and record-keeping violations. Congress authorized the Commission to assess civil money penalties for violations of FECA reporting requirements through “a simplified procedure for the FEC to administratively handle reporting violations.” H.R.Rep. No. 106-295, at 11 (1999). The Commission promulgated regulations, effective July 14, 2000, implementing these amendments. See Administrative Fines, 65 Fed.Reg. 31,-787 (May 19, 2001) (codified at 11 C.F.R. pt. 111B). Under these regulations, the Commission makes an initial determination that it has “reason to believe” that a respondent has violated 2 U.S.C. § 434(a). If the Commission concludes that there is reason to believe that a violation has occurred, the Commission notifies the respondent of the Commission’s findings. 11 C.F.R. § 111.32. The notification includes the factual and legal basis for the finding, the proposed civil money penalty, and an explanation of the respondent’s right to challenge both the reason-to-believe finding and the proposed penalty. Id. Upon receipt of this notification, the respondent can either pay the penalty, id. §§ 111.33— 111.34, or challenge the finding and the proposed penalty, id. § 111.35.

If a respondent chooses to challenge the Commission’s reason-to-believe finding or the proposed penalty, the respondent must file a written response with supporting documentation within 40 days of the date of the Commission’s finding. Id. § 111.35. The administrative fines procedures do not provide for an oral hearing before the Commission. A respondent’s written challenge can be based upon: (1) factual errors, (2) inaccurate calculations of the penalty, or (3) a showing that the respondent used “best efforts” but “reasonably unforeseen circumstances ... beyond the control of the respondent” prevented timely filing of the report at issue and the respondent filed the report no later than 24 hours after the end of these circumstances. Id. § 111.35(b)(1)-(3).

Regarding the third potential basis for a challenge, the regulations make clear that the unforeseen circumstances beyond a filer’s control that would satisfy the third basis for an administrative fines challenge are very limited. The regulations specify certain circumstances that are expressly not considered “reasonably unforeseen and beyond the control of the respondent”: (1) negligence; (2) delays caused by committee vendors or contractors; (3) illness, inexperience, or unavailability of the treasurer or other staff; (4) committee computer, software, or Internet service provider failures; (5) a committee’s failure to know the filing dates; and (6) a committee’s failure to use filing software properly. Id. § 111.35(d). Acceptable circumstances include Commission computer and software failures, widespread disruption of information transmissions over the Internet not caused by any failure of the Commission’s or respondent’s computer systems or Internet service provider, and severe weather or other disaster-related incidents. Id. § 111.35(c).

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Bluebook (online)
983 F. Supp. 2d 1, 2013 WL 5425098, 2013 U.S. Dist. LEXIS 140450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/combat-veterans-for-congress-political-action-committee-v-federal-election-dcd-2013.