If the Republican party has any life left in California, AD-36 is a district the party has to win. Carly Fiorina won the district by 15 points. Meg Whitman won by 9 points. In fact, even Mimi Walters and Tony Strickland, who got killed statewide, won this district. Barack Obama and Dianne Feinstein won the district by just a few votes. Democrat Steve Fox only won by getting 67% of the votes on the final day of counting provisional ballots. If the GOP can't win this district back in a mid-term the party is in a death spiral and will keep losing ground.
Republicans rallied around businessman Lou Gonzales to challenge Fox, discouraging others from entering the race. Gonzales has dropped out, leaving the GOP without a candidate. This is a must have district that should easily flip to the GOP. Of course they won't win without a candidate.
Edit: I've been told Republicans will announce "a quality candidate" within two weeks.