While there have been laws regulating campaign finance in Oklahoma since statehood, the laws had so many loopholes that there was no meaningful reporting of campaign contributions and expenditures for more than six decades. In the wake of the Watergate Scandal, many states enacted campaign finance reforms and other “ethics” laws. Oklahoma enacted the Campaign Contributions and Expenditures Act on May 4, 1974. It became effective immediately for the 1974 elections. Campaign reports were filed before and after elections, contributors of more than $200 were identified, and a contribution limit of $5,000 per family was imposed. There was limited financial disclosure by candidates. Filing was with the State Election Board. Criminal penalties for violations were enforced by the District Attorneys.
During the 1980s, there was significant criticism that campaign reports revealed too little and that there was virtually no prosecution for violations.
On June 13, 1986, the Legislature enacted the Oklahoma Ethics Commission Act. It immediately repealed or replaced the old campaign finance laws. The Act created a nine-member Ethics Commission, with three members each appointed by the Governor, President Pro Tempore of the Senate and Speaker of the House. The Executive Director of the Commission was appointed jointly by the Governor, President Pro Tempore and Speaker to serve a two-year term. For the first time, Lobbyists were required to register and report expenditures. (Previously, Lobbyist regulation was the province of each House of the Legislature.) Limited conflict of interest laws for legislators were part of the Act. Enforcement continued to be through the District Attorney (or Attorney General) with referral authority residing in the Commission.
Two years later, unhappy with the activities of the Commission, the Legislature repealed or replaced the Act and created in its place the Oklahoma Campaign Compliance and Ethical Standards Act. The composition of the new Council on Campaign Compliance and Ethical Standards resembled closely to the Ethics Commission. There were nine members, three each appointed by the Governor, President Pro Tempore and Speaker. Commission members became Council members for the balance of their terms. The Executive Director was appointed for a two-year term by the Governor, with the advice and consent of the Senate, from three names submitted by the Council. The most significant difference was that the Legislature placed registration and reporting forms for candidates and lobbyists in the statutes, effectively denying the Council any authority to prescribe standards for campaign finance or lobbyist reporting. Stringent procedures for investigations were included in the new Act, with criminal penalties still used as the enforcement mechanism.