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because that is approximately two weeks prior to the time that the earliest nomination papers can be filed. This will allow each candidate to know the exact amount of the voluntary expenditure limit prior to filing nomination papers. Another policy decision regarding a voluntary expenditure limit would be when a candidate must take the voluntary pledge. For example, would this have to happen when nomination papers are filed, up to the date of the election, or any time in-between. Staff suggests that a candidate have five business days from the date on which nomination papers are submitted to the City Clerk to decide whether or not to sign the voluntary expenditure limit pledge form. The proposed five business day limit was chosen because it will give timely information to interested persons about the candidate's intentions from the onset of the candidate's campaign. If Council considers a voluntary expenditure limit, a policy decision is needed about when to start cumulating expenditures towards the voluntary expenditure limit. Staff recommends that expenditure aggregate during the period starting 113 days prior to the election, which is when a candidate may first file to run for office pursuant to Elections Code section 10220, until the election date. This would provide for a clearly defined "election period" when a person could be an actual candidate. However, other periods could also be considered, such as the period commencing Jan. 1St of the same calendar year of the election, as campaign statements are filed to cover such period. It is important to note that independent expenditures and amounts spent by non- coordinated committees (e.g. Political Action Committees) would not count towards a candidate's voluntary expenditure limit, even if spent to directly support or oppose a candidate. For example, in San Rafael, a candidate who had taken the voluntary expenditure limit pledge subsequently exceeded the limit, and was fined over $20,000, when that candidate sent out a mailing in response to a late negative mailing by an independent expenditure committee. It is expected that public judgment of a candidate who violates a voluntary expenditure limit pledge will be the most effective means of enforcement. Thus, if Council considers a voluntary expenditure limit, staff recommend that there be no proposed penalties for any violation. Sample language for a voluntary expenditure limit ordinance is attached for information and discussion. Contribution Limits. As previously advised, state law allows the City to adopt local campaign contribution limits for candidates for local office. While contribution limits do implicate the Freedom of Speech and Association, they are legal when set at reasonable amounts. If, Council wishes to set contribution limits, staff recommends that Council consider a $250 contribution limit for individuals, businesses and committees (e.g. Political Action Committees, political parties, etc.) to give to a candidate or candidate's committee per Page 4 of 6